WESTPORT, Conn. - Terex agreed to sell its truck-mounted forklift businesses for $144 million in cash to Partek Cargotec, a subsidiary of Partek Corp. of Finland.
Included in the sale are Terex's truck-mounted forklift unit Powerscreen and the Princeton/Kooi units, both of which were acquired by the Westport-based company in 1999.
Terex chairman and CEO Ronald DeFeo said net proceeds from the sale will be used to repay $125 million of the company's long-term debt. The transaction is expected to close in the third quarter.
The company also signed a multiyear contract worth up to $100 million with Rio Tinto to supply hydraulic mining shovels over the next four years. Rio Tinto operates more than 43 open-cast mines worldwide with interests in copper, gold, iron ore and coal.
Terex also entered into a strategic alliance with Equipment Sales & Service of Canada.
Under the alliance, the Canadian firm now supplies parts and services for all Terex Mining product lines in western Canada.