Terex Corporation has agreed to sell its Demag Mobile Cranes business to Tadano for approximately US$215 million.
Included in the transaction are the manufacturing facilities in Zweibrucken, Germany and multiple sales and service locations. The sale, which is subject to government regulatory approvals is targeted to close in mid-2019.
John L. Garrison, Terex Chairman and Chief Executive Officer said: “The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities.
“We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members.”
Mr. Garrison 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.
“Although we are exiting the OKC-based mobile cranes products, we will continue to sell parts, and o ffer service and support to our customers.”
Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities and will also continue to manufacture Terex Rough Terrain Cranes for the global market in Crespellano, Italy, Terex tower cranes in Fontanafredda, Italy, and Terex pick and carry cranes in Brisbane, Australia.
Koichi Tadano, Tadano Representative Director, President and Chief Executive Officer said: “This is a strategic acquisition that o ffers 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.”