Terex Corporation announces discussions with Zoomlion Heavy Industry Science and Technology Co. (Zoomlion) regarding the purchase of Terex Corporation, either with or without the MHPS segment, have been terminated. Terex also announced that the sale of its Material Handling and Port Solutions business (MHPS) to Konecranes will proceed. The sale of MHPS to Konecranes for approximately $1.3 billion is subject to customary regulatory approvals and the approval of the shareholders of Konecranes, and is expected to close in January 2017.
“The Board of Directors and Management of Terex worked diligently to determine if an appropriate transaction with Zoomlion, beneficial to Terex shareholders, was achievable,” comments David A. Sachs, Chairman of the Board of Terex. “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. This ends the prolonged period of uncertainty that this process has brought to Terex and its customers, team members and shareholders. The board is confident in our global management team and with Terex’s prospects for the future.”
“The sale of the MHPS business to Konecranes will now proceed,” says John L. Garrison, Terex President and Chief Executive Officer. “This transaction represents excellent value realization for our shareholders and also provides certainty for our MHPS customers and team members. We expect this sale to be accretive to Terex’s earnings per share. 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.”