Terex Corporation has agreed to sell its Demag Mobile Cranes business to Tadano for around $AU301 million.
Terex will also exit the North American mobile crane product lines manufacturing in its Oklahoma City facility.
The transaction includes manufacturing facilities in Zweibrucken, Germany along with multiple sales and service locations.
Demag manufactures and sells all terrain cranes and large crawler cranes and has been part of Terex for almost two decades.
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.
- Terex reports third quarter 2018 sales of $1.2B
- Terex unveils new CTL 272-18 luffing jib
- Terex sales up 19%
“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.”
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.
“These are strong businesses that will continue to be an important part of Terex,” Garrison said.
“During these transitions, our global team is committed to providing exceptional service to all of our global customers, including those affected by these changes.”
Tadano Ltd. Representative Director, President and Chief Executive Officer Koichi Tadano said the move was a strategic acquisition that offers Tadano considerable scope for growth.
“The addition of the well-respected Demag brand of all terrain cranes and large crawler cranes range extends our product lines and options for customers,” Tadano said.
“The addition of the Demag branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”