US-headquartered manufacturer Terex has sold its German compact equipment business to Japanese producer Yanmar in a US$60 million (€53 million) deal.
Terex’s German compact construction business manufactures and sells midi/mini excavators, wheeled excavators and compact wheel loaders.
Terex said that its manufacturing facility in Crailsheim, Germany, was also included in the deal, as was its parts distribution centre in Rothenburg.
Yanmar is already an established player in the European mini excavator market, but the deal - expected to close in the second half of 2016 - broadens its reach into the compact loader segment in the region.
Terex president and CEO John Garrison said Yanmar represented a strong strategic buyer for the business.
“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 for our shareholders.”
Yanmar said the acquisition would allow it to further develop its business in the small- to medium-sized construction machinery market in Europe by collectively using the sales and service networks, and the product development and production knowhow of both companies.
Yanmar president Takehito Yamaoka said Terex's German compact business had a strong Europe-based sales network and excellent products, including the Schaeff series.
“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."
The deal comes after Terex agreed to sell its Terex Materials Handling and port Solutions (MHPS) business to Konecranes – a transaction expected to close in January 2017.