Terex
Corp. has completed the previously announced sale of its mining business to
Bucyrus International for $1 billion in cash, plus approximately 5.8 million
shares of Bucyrus common stock. The products divested by Terex in the
transaction include hydraulic mining excavators, electric drive mining trucks,
track and rotary blasthole drills, and the highwall miner, as well as the
related parts and aftermarket service businesses, including the company-owned
distribution locations.
“The
closing of this transaction marks a positive step toward the transformation of
Terex Corporation into a machinery and industrial products business,” says
Ronald DeFeo, Terex chairman and chief executive officer. “Our focus going forward
is on product and market niches where we can maintain and build superior
customer propositions with high returns on capital for our shareholders. This
transaction provides us both opportunity and flexibility to create value.”
Mr. DeFeo continues, “As we
said in December 2009, this sale is good for customers, team members and
shareholders because it strengthens this business and makes Bucyrus an industry
leader in mining. For our part, the substantial after-tax proceeds will allow
Terex to continue to invest in our current businesses, as well as to look to
add new, well-positioned acquisitions with strong market presence to the
company’s portfolio.”
Terex Sells Mining Business to Bucyrus
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