US-based manufacturer Terex has completed the sale of 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 broadens its reach into the compact loader segment in the region.
Peter Hirschel, Terex Compact Germany general manager, said, “It is a great honour to be the most recent member of the Yanmar family. To have a strong parent company with Yanmar with long-term growth expectations is an outstanding situation for the compact Germany business in our competitive market.
“We expect together with Yanmar to have a very interesting, complete and competitive product portfolio and an excellent dealer network. From our strong market position all customers, dealers, team members and the company will benefit.”
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.
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.