Terex has agreed to sell its Demag mobile cranes business unit to Tadano for approximately USD215 million.
Terex relaunched the Demag brand, which covers the manufacturer’s all-terrain and crawler crane models, in April 2016, as HLPFI reported here.
The deal includes manufacturing facilities in Zweibrücken, Germany, as well as multiple sales and service locations. The sale is subject to regulatory approvals and other closing conditions; it is expected to close in mid-2019.
Commenting on the agreement, Koichi Tadano, Tadano representative director, president and ceo, said: “This is a strategic acquisition that offers 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 Zweibrücken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”
In addition to selling its Demag mobile cranes business, Terex will also exit the North American mobile crane market. “These changes will simplify our Oklahoma City operation, which will continue to produce telehandlers and re-manufactured units for our aerial work platforms (AEP) segment and various products for our materials processing segment,” explained John L. Garrison, Terex chairman and ceo.
He added that the Oklahoma City operations will continue to sell parts and offer service and support to Terex’s customers in the region.
Terex will also continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities; rough-terrain cranes for the global market from its location in Crespellano, Italy; tower cranes in Fontanafredda, Italy; and its range of pick and carry cranes at its facilities in Brisbane, Australia.