Volvo Construction Equipment’s acquisition of Terex’s hauler business has been finalised.
The $160mn deal, which completed earlier today, was initially announced during the final quarter of 2013. As part of the agreement, Volvo CE has acquired Terex’s off-highway rigid and articulated hauler lines, as well as its production facility in Motherwell, Scotland.
Speaking after the 2013 announcement, Ron DeFeo, Terex’s CEO and chairman, said: “[T]rucks no longer fit within our changing portfolio of lifting and material handling businesses. I am confident that the truck business will benefit by joining a company sharing similar competencies and offering complementary products and services.”
The acquisition has been finalised, as scheduled, during the first half of 2014. Not only has Volvo gained the right to distribute haulers in the United States, but it has also acquired a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China.
Excluding NHL, in 2013, the acquired businesses achieved net sales of approximately $228mn, and an operating income of around $9.5mn. The sum of $160mn has been paid by Volvo CE to Terex on a cash and debt-free basis.
