Volvo CE to purchase Terex’s hauler business

Volvo Construction Equipment (CE) came to terms with Terex Corp. to acquire hauler manufacturer Terex Equipment Ltd. for $160 million. The deal will include related assets and intellectual property. Volvo CE expects to finalize the transaction during the second quarter of 2014.

According to a press release, the deal includes Terex Equipment’s main production facility in Scotland and two product ranges that offer both rigid and articulated haulers. The deal also includes the distribution of haulers in the United States, as well as a 25.2 percent holding in Inner Mongolia North Hauler Joint Stock Co. (NHL), which manufactures and sells rigid haulers under the Terex brand in China.

The acquisition includes five models of rigid haulers, with payloads ranging from 32 to 91 tons. The introduction of rigid haulers will extend Volvo CE’s position in light mining, the company says.

In addition, the deal adds three models of articulated haulers to the Volvo portfolio, with payloads ranging from 25 to 38 tons. These machines support Volvo CE’s existing position in the articulated hauler market.

“This is a strategic acquisition that offers Volvo CE considerable scope for growth,” says Pat Olney, Volvo CE president, in a press release.

If approved, the acquisition adds about 500 employees to Volvo CE’s existing workforce. It also allows for the continued use of the Terex brand name on relevant machines for a transitional period.

Photo: Volvo Construction Equipment