Volvo Construction Equipment (Volvo CE) has agreed to purchase US head-quartered Terex Equipment Ltd., a major manufacturer of off-highway rigid and articulated trucks from Terex Corp, a diversified manufacturer of heavy equipment for construction and surface mining.
Volvo CE will pay approximately US$160 million for the business unit, whose assets include a major production facility in Scotland and just over 25% of Inner Mongolia North Hauler Joint Stock Co (NHL), which makes rigid haulers under the Terex brand in China, distribution of haulers in the US and intellectual property.
The sale is subject to US Government regulatory approvals and expected to complete in the first half of 2014.
Terex has been consolidating its business units post 2008 GFC and Ron DeFeo, Terex chairman and chief executive officer acknowledged the group’s manufacturing shift away from heavy trucks,
“Trucks have been an important part of our company for more than three decades, however, they no longer fit within our changing portfolio of [being a] lifting and material handling businesses.”
Volvo CE president Pat Olney described the deal as a strategic acquisition which offered Volvo CE scope for expansion: “The addition of a well-respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications, at a time of renewed confidence in the sector. This acquisition will enhance our position in this segment.”
In New Zealand Volvo Construction Equipment is distributed by TransDiesel, which is also the NZ distributor for selected Terex products.
