Terex Corp. ended discussions with Zoomlion Heavy Industry Science and Technology Co. regarding the potential purchase of Terex. The sale of the company’s Material Handling and Port Solutions (MHPS) business segment to Konecranes is still going to proceed as planned, Terex adds.
According to a company statement, Terex says this brings several months of uncertainty to an end for its customers, team members and shareholders. Terex adds that it will ll now be able to focus its efforts on serving its customers.
“The board of directors and management of Terex worked diligently to determine if an appropriate transaction with Zoomlion, beneficial to Terex shareholders, was achievable,” says David 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.”
Despite this, Terex reports that the sale of its MHPS business segment will enhance its financial position and allow it to invest in new products and services.
“This transaction represents excellent value realization for our shareholders and also provides certainty for our MHPS customers and team members,” says John Garrison, Terex president and CEO. “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.”
Terex is a lifting and material handling solutions company that serves five business segments, including aerial work platforms, construction, cranes, material handling and port solutions, and materials processing. The company manufactures equipment for the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries.
