Terex Finalizes MHPS Divestiture to Konecranes, Simplifies Structure

In sync with its efforts to simplify the company structure, systems and footprint in a bid to improve efficiency and enhance global competitiveness, Terex Corporation has completed the previously announced sale of its Material Handling & Port Solutions (MHPS) segment. The segment has been scooped up by Finnish company, Konecranes Plc for $595 million and €200 million in cash and 19.6 million newly issued class B shares representing a 25% interest in Konecranes.

The sale of the MHPS business represents a significant strategic shift in Terex’ business away from universal, process, mobile harbor and ship-to-shore cranes. The company is simplifying its organizational structure and continues to make progress on refocusing portfolio. In Oct 2016, Terex completed the sale of its German compact construction business to Yanmar for $60 million in cash. Included in the sale was the manufacturing facility located in Crailsheim, Germany, and parts distribution center located in Rothenberg Germany.

Following the sale of the construction and the Material Handling & Port Solutions (MHPS) businesses, Terex will be a more focused company, centered on three segments: Aerial Work Platforms (AWP), Cranes, and Materials Processing (MP). The transactions will help the company to focus on businesses that can consistently deliver returns in excess of cost of capital.

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