Terex acquisition of Fantuzzi and Noell is back on
By Alex Dahm03 April 2009
Following its 2008 announcement and termination of the acquisition of Fantuzzi and Noell, Terex has announced that the acquisition is again to go ahead.
Terex Corporation said it has agreed on a term sheet (similar to a letter of intent) to acquire port crane and equipment manufacturers Fantuzzi Industries and Noell Crane for about €175 million (US$235 million).
Terex first announced the acquisition of Fantuzzi and Noell in August 2008 for about €215 million ($289 million) but announced in December that it was terminating the acquisition "due to the existence of a material adverse change in the Fantuzzi business." After the termination Fantuzzi disputed it and initiated arbitration against Terex in Italy. The parties, with the lenders to Fantuzzi and Noell, continued to discuss a resolution.
"Immediately after closing we will begin to work with Fantuzzi's team members, suppliers, distributors, customers and other stakeholders to aggressively restructure and position these businesses for the eventual recovery in their markets," said Rick Nichols, Terex Cranes president.
Phil Widman, Terex Corporation senior vice president and chief financial officer, added, "Upon completion of this transaction, our debt levels will increase modestly due to the financing provided from the existing financial creditors. With the long term maturities and expected company-wide cash flow generation, we believe liquidity should be sufficient to get us through the economic downturn."