Terex Corporation has agreed to sell its Demag mobile cranes business to Tadano for about USD215-million.
The deal, which is subject to regulatory approvals, covers all terrain cranes and large crawler cranes and includes the factory in Zweibrücken, Germany, as well as eight subsidiaries of Terex, including sales and service locations. The sale is targeted to close in mid-2019.
Tadano said in a statement, ‘Through the acquisition of Demag, Tadano further seeks to meet customer needs with the addition of lattice-boom crawler cranes to our product line-up, as well as the enhancement of our line of all terrain cranes. We aim for a greatly expanded global presence as we strive toward our goal of becoming No. 1 worldwide in the lifting equipment industry.’
In addition to selling Demag, Terex will cease the production of mobile cranes in North America (made in Oklahoma City). However, it will continue to manufacture rough terrain cranes for the global market in Crespellano, Italy, and Terex tower cranes in Fontanafredda, Italy. The Terex pick and carry cranes made in Brisbane, Australia, will also be continued.
‘The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities. We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members,’ adds Tadano.
The changes do not affect the Terex Utilities business, which will continue to be manufactured at its Watertown, South Dakota facilities in the US.
Terex’s Oklahoma City plant will continue to produce telehandlers and re-manufactured units for its aerial work platform business as well as various products for its Materials Processing segment.