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Mon March 25 2019

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Terex sells German crane business to Japanese

24 Feb Terex has agreed a deal to sell its Demag mobile crane business to Tadano of Japan for US $215m (£165m).

Terex revived the Demag brand in 2016
Terex revived the Demag brand in 2016

The Demag Mobile Cranes business manufactures and sells 15 models of all-terrain cranes and seven large crawler crane types.  Included in the transaction are the manufacturing facilities in Zweibrucken, Germany and multiple sales and service locations, including the UK.

Since Terex acquired Demag Mobile Cranes from Siemens in 2002 for $150m, it has lost market share, mostly to Liebherr. It dropped the Demag brand name only to revive it in 2016.

Tadano president Koichi Tadano said: “This is a strategic acquisition that offers Tadano 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.  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.”

Terex chairman and chief executive John Garrison said: “The Demag Mobile Cranes business has been part of our Company for almost two decades and produces world class products. The dedicated Demag Mobile Cranes team members have made significant contributions to Terex and to the crane industry.  The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities.  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.” 

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Mr Garrison added, “In addition to selling the Demag Mobile Cranes business, Terex will exit the North American mobile crane product lines manufactured in our Oklahoma City facility.  These changes will simplify our Oklahoma City operation, which will continue to produce telehandlers and re-manufactured units for our Aerial Work Platforms segment and various products for our Materials Processing segment.”

Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota facilities. Terex will also continue to manufacture rough terrain cranes in Crespellano, Italy (the legacy Bendini business),  tower cranes in Fontanafredda, Italy (Comedil) and pick-and-carry cranes in Brisbane, Australia (Franna).  “These are strong businesses that will continue to be an important part of Terex,” Mr Garrison said.

The Demag sale is subject to government regulatory approvals and other customary closing conditions. It is targeted to close in mid-2019.

MPU

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