Terex to Sell German Compact Construction Equipment Business to Yanmar Holdings
Terex Corp. has agreed to sell its German compact construction business to Yanmar Holdings Co. for cash proceeds of about $60 million. The German compact construction business manufactures and sells mid/mini excavators, wheeled excavators and compact wheel loaders. Included in the transaction is the manufacturing facility located in Crailsheim, Germany, and the parts distribution center in Rothenburg, Germany.
The sale is subject to government regulatory approvals and customary closing conditions and is expected to close in the second half of 2016.
“We are pleased to enter into this agreement with Yanmar, as they represent a strong strategic buyer for this business who values our quality designs, global team members and distribution partners,” said John Garrison, Terex president and CEO. “For Terex, the sale of the German compact construction business is another step in our strategy to focus our portfolio on those product categories where Terex has a significant presence in the market and that can provide the greatest returns to our shareholders.”
The acquisition will allow Yanmar to further actively develop its business in the small to medium-sized construction machinery market in Europe by collectively utilizing the sales and service networks, and the product development and production knowhow of both companies.
“We are very happy to have concluded an agreement for the acquisition of Terex Corporation’s compact construction equipment business, which possesses a strong Europe-based sales network and excellent products, including the distinguished German Schaeff series,” said Takehito Yamaoka, president of Yanmar Holdings. “I believe this tie-up will promote not only the short-term but also long-term growth of Yanmar’s construction equipment business by expanding the Yanmar Group’s compact construction equipment business and supplementing the sales network of our French subsidiary.”
Terex Corp. recently agreed to sell its Material Handling and Ports Solution business to Finland-based Konecranes.
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.