Tadano completes acquisition of Demag Mobile Cranes

Tadano Ltd. has announced the completition of its $215 million acquisition of the Demag Mobile Cranes business on August 1st. Demag’s mobile cranes give Tadano one of the most complete ranges of lifting equipment solutions available from a single manufacturer, expanding the product line with eight lattice boom crawler crane models with lift capacities from 400 to 3,200 t, including 15 all terrain crane models enhancing Tadano’s maximum lift capacity in-segment to 1,200 t. After this acquisition, the Tadano Group’s total lifting equipment line now includes more than 80 models, including rough terrain cranes, all terrain cranes, lattice and telescopic boom crawler cranes, truck cranes, and more.

“The Tadano Group’s strategy is to become the global leader in the lifting equipment industry and the premier choice with our customers. The Demag Mobile Cranes acquisition is one vital step toward achieving that goal,” says Koichi Tadano, president and CEO of Tadano Ltd. “It expands our penetration into many markets throughout the world, adds lattice boom crawler cranes to our overall product line, and enhances the capacity range of our all terrain cranes. By working together, we can better respond to our customers’ needs and give them greater added value than ever before.”

“Demag’s dedicated stakeholders, including customers, distributors and suppliers, among others, infuse the company with great value. As our journey with Demag begins, our most immediate goal is ensuring ‘Business as Usual’ for current Demag customers,” added Mr. Tadano. “We are committed to a seamless transition that allows these stakeholders to continue with their important business smoothly and successfully, while we continue on with the Tadano Group Vision of ‘Pursuing Further Excellence for the World and Future.’”

As a subsidiary of the Tadano Group, the Demag mobile cranes business’s legal entity name will be changed to Tadano Demag GmbH in the following weeks. Furthermore, as of August 1st Demag is now led by Jens Ennen, the new CEO of Tadano Demag GmbH.

Jens Ennen, CEO, Tadano Demag GmbH

Tadano to buy Demag for a value of $215 million

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.