Terex Corporation has agreed to sell Terex Equipment Private Limited (TEPL) to Manitou Group.
Based in India, TEPL manufactures a range of compact construction equipment, including backhoe loaders, wheel loaders, and skid-steer loaders (SSLs).
The sale marks an important step in the execution of Terex’s strategy to refocus its portfolio on aerial work platforms (AWPs), cranes, and material processing equipment.
John Garrison, president and chief executive officer of Terex, said: “Manitou is a strong strategic buyer with the resources and desires to further grow the business as an industrial base for Asia and emerging markets.
“For Terex, the sale of TEPL represents the disposition of the last significant asset held for sale in Terex’s former Construction segment. This is an important milestone in executing on Terex’s commitment to focus our portfolio on those product categories where Terex has a significant presence in the market and that can provide the greatest returns for our shareholders.”
Manitou cited TEPL’s revevenue of $32m in its most recent financial year, and its “solid dealer network”, as factors that would allow the company to reach emerging markets.
Michael Denis, president and CEO of Manitou, commented: “This acquisition perfectly fits our strategy to reinforce our presence on emerging markets.”
“TEPL produces high-quality products with a very efficient spare parts and service organisation, and will be a strong industrial base for Manitou Group to develop new product ranges for Asia and emerging countries.”
The sale of the Indian compact business to Manitou is subject to customary closing conditions and is expected to be finalized in the first half of 2017.
As for Terex’s broader strategy, in January 2017 Terex completed the high profile sale of its Material Handling & Ports Solutions business for a sum of $1.3bn to Konecranes – after a proposed merger of the two firms fell through.
In 2016, Terex also completed the sale of its German compact construction business (including a manufacturing facility and a parts distribution centre) for $60m to Yanmar, while in 2014, it sold its rigid and articulated hauler business to Volvo CE for $160m.
