Terex Corp. ends merger with Konecranes

Terex Corp. and Konecranes mutually agreed to terminate their merger without the payment of a fee by either party. The two companies initially entered into a merger on Aug. 10, 2015.

Terex says it signed a definitive agreement to sell its material handling and port solutions business to Konecranes for about $1.3 billion. The consideration being paid includes $820 million in cash and 19.6 million newly issued shares of Konecranes. Upon completion of this transaction, Terex will own about 25 percent of Konecranes’ outstanding shares and have the right to nominate two of its directors. According to Terex, the transaction is expected to close in January 2017, subject to customary regulatory approvals and the approval of Konecranes’ shareholders.

“The sale of [the material handling and port solutions] business to Konecranes is good for our customers, team members and shareholders,” says John Garrison, president and CEO of Terex. “It will significantly reduce Terex’s debt levels, improve our balance sheet and give us long-term financial flexibility to invest in our business and buy back shares.”

Garrison adds that the sale offers other benefits to Terex shareholders. He says the sale will allow Terex to continue discussions with Zoomlion Heavy Industry Science and Technology Co. on a potential sale of the company at $31 per share with the material handling and port solutions business or for the sale of Terex without the material handling and port solutions business.

Terex is a lifting and material handling solutions company that serves five business segments, including aerial work platforms, construction, cranes, material handling and port solutions, and materials processing. The company manufactures equipment for the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries.