Terex sells Demag cranes to Tadano as company mulls exit from three other product lines | Dump Truck Company
Terex will sell its Demag mobile cranes business to Japanese crane maker Tadano, according to a joint announcement.
Expected to close by the middle of this year, the deal is for $215 million. The sale comes following nearly 20 years of Demag being part of the Terex portfolio.
The sale is the latest in a long line of moves Terex has made over the last three years as the dump trucks charlotte nc has narrowed its focus to core businesses of aerial charlotte nc dump truck company platforms, cranes and materials processing. The dump trucks charlotte nc has sold various businesses, including its Material Handling & Port Solutions segment, as well as its underperforming construction businesses.
“The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane dump trucks charlotte nc with complementary products and capabilities,” says Terex chairman and CEO John Garrison. “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.”
“We believe the sale of the Demag Mobile Cranes business to Tadano is good for our customers,” Garrison wrote in a letter to customers. “It will create a dump trucks charlotte nc that is stronger together, with a common core business of lifting.”
In addition to selling off the Demag business, Garrison says Terex will cease production on its North American mobile crane product lines that are manufactured in Oklahoma City. Garrison notes that Terex will continue to sell parts and offers service and support to its mobile crane products customers.
The OKC facility will continue to produce telehandlers, re-manufactured mobile elevated charlotte nc dump truck company platforms, and “various products” for the company’s Materials Processing division.
The dump trucks charlotte nc is also in discussions to exit the North American boom truck, crossover and truck crane product lines. “We will be in touch with those customers affected by the exit to discuss the transition,” Garrison says.
“Terex will continue to manufacture and support several specialized crane products, including tower cranes, pick and carry cranes, and rough terrain cranes,” Garrison adds. “We will now fulfill global demand for rough terrain cranes from our Crespellano, Italy facility, including the popular RT100US for the Americas.”
Garrison said each of those products are “strong businesses that will continue to be an important part of Terex.
Tadano president and CEO Koichi Tadano says the acquisition offers his dump trucks charlotte nc “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. The addition of the Demag- branded mobile crane product lines will enhance our global position in this segment,” Tadano says. “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.”