Konecranes’ acquisition of Terex MHPS to proceed
By Alex Dahm27 May 2016
Following termination of Zoomlion’s bid to acquire Terex Corporation, the previously announced acquisition of the Terex port crane business by Konecranes will now proceed.
The US$ 1.3 billion deal for the Terex Materials Handling and port Solutions (MHPS) business is expected to close in January 2017.
Zoomlion and Terex announced on 27 May that the Chinese manufacturer had terminated its attempt to acquire USA-headquartered Terex Corporation. “The board of directors and management of Terex worked diligently to determine if an appropriate transaction with Zoomlion, beneficial to Terex shareholders, was achievable,” said David Sachs, Terex chairman of the board. “Unfortunately, after many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS,” Sachs continued.
John Garrison, Terex president and chief executive officer, said, “The sale of the MHPS business to Konecranes will now proceed.”
Garrison continued, “The proceeds will significantly reduce Terex’s debt levels and improve our balance sheet, providing us with the ability to buy back shares and invest in our remaining businesses. As a 25 % shareholder of Konecranes, Terex will be able to share in the synergies and economic upside of the combined MHPS and Konecranes businesses.”