Japanese crane company Tadano has completed its $315 million (USD 215 million) acquisition of Terex’s Demag Mobile Crane business.
The move was a strategic acquisition to increase Tadano’s growth aspects and meet customer needs with the addition of lattice-boom crawler cranes to its product line-up.
Tadano President and CEO, Koichi Tadano, said the transaction brings together two of the top names in the lifting equipment industry.
“The Tadano Group’s long-term goal is to become the global leader in the lifting equipment industry, and the Demag Mobile Cranes acquisition is one vital step toward achieving that goal,” he said.
“Demag’s transition into the Tadano Group will be seamless, and our customers can expect that they will be able to carry out business as usual – right from the very start. For the most part you will continue to work with the same Demag sales, service and parts contacts as you have up until now.”
- Tadano’s profits and sales rise
- Terex sells off boom truck company
- Terex sells off Demag Mobile Cranes for $300M
As part of the acquisition, subsidiary businesses will have their names changes to include Tadano, while the Demag mobile cranes business will be changed to Tadano Demag GmbH. It will be led by Jens Ennen, who has been appointed to CEO.
The transaction includes manufacturing facilities in Zweibrucken, Germany along with multiple sales and service locations.
Certain assets are will be acquired from Terex Australia, potentially including sales and services employees, local product inventories and fixed asset acquisitions.
Terex will continue to manufacture Terex Utilities products and Rough Terrain Cranes for the global market and continue to manufacture its pick and carry cranes in Brisbane, Australia.
Terex Chairman and Chief Executive Officer John Garrison said the dedicated Demag Mobile Cranes team members have made significant contributions to Terex and the crane industry.
“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,” he said.
“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.”