Terex Sells Unit To Konecranes, Zoomlion Next?
By pdamon16 May 2016
Terex Corp., Westport, Conn., and Finland’s Konecranes have entered into an agreement to sell Terex’s Material Handling & Port Solutions (MHPS) business to Konecranes for $1.3 billion. The sale, which includes $820 million in cash; and 19.6 million new shares of Konecranes equalling 25% stake in Konecranes, also mutually ends the Terex and Konecranes merger agreement. The deal, according to most analysts, also paves the way for China’s Zoomlion to acquire the remainder of Terex.
To that end, Terex said it is ready to continue discussions with Zoomlion to acquire Terex (with or without MHPS). Terex added has the right to terminate the MHPS sale on or before May 31, 2016 if Terex agrees with Zoomlion Heavy Industries Science & Technology Co., Ltd. on a sale of Terex as a whole.
Terex said the sale of MHPS preserves the strategic logic and synergies of the “merger of equals” and creates a global leader in industrial lifting & port solutions. On the financial side, Terex said the sale generates significant value creation through realization of operational synergies. It also enables Terex to participate in the economic upside of the combined business and allows Terex to benefit from Konecranes dividends, while locking in the benefits of MHPS sale while continuing discussions with Zoomlion.