Terex Corporation announced that it has agreed to sell its German compact construction business to Yanmar Holdings Co., Ltd. for cash proceeds of approximately $60 million. The German compact construction business manufactures and sells midi/mini excavators, wheeled excavators and compact wheel loaders. Included in the transaction is the manufacturing facility located in Crailsheim, Germany and the parts distribution center located in Rothenburg, Germany. The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the second half of 2016.
“We are pleased to enter into this agreement with Yanmar, as they represent a strong strategic buyer for this business who values our quality designs, global team members and distribution partners,” commented John L. Garrison, Terex President and Chief Executive Officer. “For Terex, the sale of the German compact construction business is another step in our strategy 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.”