Terex Acquires Crane Manufacturer

Terex adds to its product mix with acquisition of European-based crane manufacturer.

Terex Corp. entered into an agreement to acquire Demag Mobile Cranes GmbH & Co. Demag manufactures and distributes telescopic and lattice boom cranes. The acquisition is expected to be complete by early in the third quarter of the year.

"The acquisition of Demag is an excellent opportunity for us," said Ronald DeFeo, Terex chairman and CEO. "From a strategic perspective, it improves our position in the all-terrain crane market, which has been a growing market category over the past several years, and gives us a product offering that fills gaps in the current Terex crane product line. When combined with our rough terrain and truck crane businesses, it will give us a product offering in the mobile telescopic crane market second to none."

DeFeo continued, "Demag also has a leading market position in the 300-ton to 1,600-ton lattice-boom crane category, which compliments our existing product offering nicely and enables us to offer our customers a full line of lattice boom cranes with lifting capacities from 60 tons to 1,600 tons. The combination of Demag and Terex will create a worldwide crane company with one of the broadest geographic and product offerings in the industry. We expect the acquisition to add $360 million in pro forma annual revenues and be accretive by $.20 to $.30 per share after planned cost reductions are implemented."

The acquisition brings with it three production facilities, two in Zweibrucken, Germany and one in Pecs, Hungary, with over 460,000 square meters of production capacity.

Get curated news on YOUR industry.

Enter your email to receive our newsletters.

Loading...