In early January, Terex sold its mining-equipment business to Wisconsin-based Bucyrus International for $1.3 billion, citing a need to reshape and focus on niche products rather than compete directly with full-line construction-equipment makers like Caterpillar and Komatsu.
Under the deal with Bucyrus, Terex will hand over assets used to design, manufacture and sell hydraulic excavators, surface mining trucks, and most drills. Included in Terex’s mining-equipment business are 38 facilities and 2,150 employees globally.
“We will expand our geographic footprint and diversify our portfolio of products across a broader range of commodities,” says Bucyrus CEO Tim Sullivan.
In fact, Bucyrus will double its addressable market from $15 billion to more than $30 billion, selling machines from excavators and transport machinery to electric rope shovels and walking draglines.