Sale of Terex Material Handling and Port Solutions to Proceed | Construction News

Terex has announced that its discussions with Zoomlion Heavy Industry Science and Technology Co. regarding the potential purchase of Terex Corporation have been terminated, and that its recently announced sale of the company's  Material Handling and Port Solutions business segment to Konecranes is proceeding as planned, subject to regulatory and Konecranes shareholder approval. 
 
"We are pleased that this announcement brings several months of uncertainty to an end for our customers, our team members and our shareholders. With this uncertainty behind us, the Terex team can focus our full efforts on serving our customers," said Terex Cranes President Ken Lousberg, in an emailed statement. "The favorable impact of the MHPS sale will enhance our financial position, enabling us to invest in new products and services to serve you even better in the future."

The Terex corporate website estimates that the sale price of MHPS to Konecranes will be approximately $1.3 billion and that the transaction will close in January 2017.

John L. Garrison, Terex president and chief executive officer, said, “This transaction represents excellent value realization for our shareholders and also provides certainty for our MHPS customers and team members. We expect this sale to be accretive to Terex’s earnings per share. The proceeds will significantly reduce Terex’s debt levels and improve our balance sheet, providing us with the ability to buy back shares and invest in our remaining businesses. As a 25% shareholder of Konecranes, Terex will be able to share in the synergies and economic upside of the combined MHPS and Konecranes businesses.”