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Terex Agrees to Fantuzzi Industries, Noell Port Equipment Acquisition

Terex Corporation, Westport, Conn., announced that it has agreed on a term sheet to acquire the port equipment businesses of Fantuzzi Industries and Noell Crane for approximately €175 million ($232 million).

Term sheets also have been agreed with the existing financial creditors to the Fantuzzi group for long-term financing on favorable terms to provide substantially all of the funds necessary to complete the transaction. The term sheets are non-binding, and Terex reported it is the intention of the parties to work to enter into agreements and complete the transaction within the next few weeks.

Terex initially announced the acquisition of the Fantuzzi and Noell businesses in August 2008 for total consideration of approximately €215 million ($285 millioin) and subsequently announced in December 2008 that it was terminating the acquisition due to the existence of a material adverse change in the Fantuzzi business. After the termination, Fantuzzi disputed the termination and initiated arbitration proceedings against Terex in Italy. However, the parties, together with the lenders to the Fantuzzi and Noell businesses, continued to engage in discussions to resolve the matter.

“Immediately after closing we will begin to work with Fantuzzi’s team members, suppliers, distributors, customers and other stakeholders to aggressively restructure and position these businesses for the eventual recovery in their markets,” said Rick Nichols, president of Terex Cranes.

Phil Widman, senior vice president and chief financial officer, noted that after completing the transaction, Terex’s debt levels will increase modestly due to the financing provided from the existing financial creditors. “With the long term maturities and expected company-wide cash flow generation, we believe liquidity should be sufficient to get us through the economic downturns,” he added.


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