Zoomlion Continues to Advance Proposal to Acquire Terex
Zoomlion announced that the company will continue to advance its proposed transaction of acquiring Terex Corp. at $30 per share in cash. The Chinese construction equipment manufacturer made a non-binding offer on Dec. 4, representing a 41-percent premium compared to the last closing price of Terex prior to the offer, which was $21.22.
Zoomlion said it has prepared a concrete financing plan for this proposed transaction and plans to utilize its own cash on hand, representing 40 percent of the overall financing plan, and bank debt financing representing 60 percent of the overall financing plan to complete the proposed transaction. For the bank debt financing portion, letters of support have been received from relevant banks, Zoomlion said.
Zoomlion acknowledges that the proposed transaction will be subject to the review of multiple regulatory authorities, and said it is confident it will receive the necessary regulatory approvals.
Zoomlion said it believes that the proposed transaction offers strategic benefits to both companies. It added that Terex’s main products include construction machinery such as aerial work platforms, material handling and earthmoving equipment. A merger between Zoomlion and Terex would give Zoomlion and Terex a more comprehensive product offering and wider product coverage, potentially expanding Terex’s distribution into China and other emerging markets.
“The merged company will be able to achieve a global footprint,” Zoomlion said in a statement. “Terex possesses advanced manufacturing knowhow and technology, whereas [Zoomlion] has abundant production capacity and manufacturing cost advantages. The merged company will be able to realize production capacity synergies and optimize finance costs. Terex and [Zoomlion] share similar corporate cultures and both companies have excellent management teams. [Zoomlion] would look to Terex’s international management team to bring significant global experience and knowledge to the merged company.”
Zoomlion added that it has made all necessary preparations for the proposed transaction and has engaged professional financial advisors and legal counsels.
About the Author
Michael Roth
Editor
Michael Roth has covered the equipment rental industry full time for RER since 1989 and has served as the magazine’s editor in chief since 1994. He has nearly 30 years experience as a professional journalist. Roth has visited hundreds of rental centers and industry manufacturers, written hundreds of feature stories for RER and thousands of news stories for the magazine and its electronic newsletter RER Reports. Roth has interviewed leading executives for most of the industry’s largest rental companies and manufacturers as well as hundreds of smaller independent companies. He has visited with and reported on rental companies and manufacturers in Europe, Central America and Asia as well as Mexico, Canada and the United States. Roth was co-founder of RER Reports, the industry’s first weekly newsletter, which began as a fax newsletter in 1996, and later became an online newsletter. Roth has spoken at conventions sponsored by the American Rental Association, Associated Equipment Distributors, California Rental Association and other industry events and has spoken before industry groups in several countries. He lives and works in Los Angeles when he’s not traveling to cover industry events.