Terex Corporation announced the sell of its Demag Mobile Cranes business to Tadano Ltd for a value of approximately $215 million. Included in the transaction are the manufacturing facilities in Zweibrucken, Germany and multiple sales and service locations.
Commenting on the rationale of the deal, Koichi Tadano, Tadano Ltd. Representative Director, President and CEO said: “This is a strategic acquisition that offers Tadano considerable scope for growth. The addition of the well-respected Demag brand of all terrain cranes and large crawler cranes range extends our product lines and options for customers. The addition of the Demag branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”
John L. Garrison, Terex Chairman and CEO added: “In addition to selling the Demag Mobile Cranes business, Terex will exit the North American mobile crane product lines manufactured in our Oklahoma City facility. These changes will simplify our Oklahoma City operation, which will continue to produce telehendlers and re-manufactured units for our Aerial Work Platforms segment and various products for our Materials Processing segment.”
Terex will continue to manufacture rough terrain cranes in Crespellano, Italy, tower cranes in Fontanafredda, Italy, pick and carry cranes in Brisbane, Australia and Terex Utilities products at its Watertown, South Dakota facilities.
The sale, subject to government regulatory approvals and there customary closing conditions, is expected to close in mid-2019.