On October 1, Yanmar Holdings Co., Ltd. has completed the acquisition of Terex Compact Germany GmbH, a small- to medium-sized construction machinery business in Europe formerly owned by Terex Corp. as well as related business assets.
This acquisition includes the Terex Corp. businesses carrying out the production and sale of wheel loaders, excavators and wheeled excavators, as well as the production, sales and development facilities in Crailsheim, Germany, and parts distribution center in Rothenburg, Germany. The acquisition cost was USD $60 million.
This acquisition will greatly expand the sales and service networks possessed by both companies in the major overseas markets of Europe and North America. In addition, the application of the product development and production know-how of both companies enables expansion of Yanmar's product line-up to better fulfill customer needs. This, in turn, will allow the company to increase its current 30 billion yen (approx.) in overseas construction business sales to closer to 80 billion yen by 2020.
"We also plan to expand our business to approximately 130 billion yen in the mid-term for the construction business of the entire Yanmar Group, and to continue to actively develop business in the small and medium sized construction machinery marketplace," says Takehito Yamaoka, President, Yanmar Holdings Co., Ltd.
"We have concluded an agreement for the acquisition of Terex Compact Germany, which possesses a strong Europe-based sales network and an excellent quality family of products, including the distinguished German Schaeff series, in a move aimed at expanding the Yanmar Group's small- to medium-sized construction machinery business. This will significantly expand the Yanmar Group's small and medium sized construction machinery portfolio. I am certain that the conclusion of this agreement will lead to significant growth for the Yanmar Group's construction machinery business."
Terex Compact Germany GmbH's General Manager Peter Hirschel states, "It is a great honor to be the most recent member of the Yanmar family. To have a strong parent company with Yanmar with long-term growth expectations is an outstanding situation for the Compact Germany business in our competitive market. From our strong market position all customers, dealers, team members and the company will benefit.”