Konecranes ditches merger to buy Terex
Konecranes has signed an agreement to purchase Terex’s Material Handling & Port Solutions (MHPS) for a combined offer of cash and shares.
The acquisition, valued at E1.126bn, will create a group targeting synergies of E140m per annum at EBIT level within three years from closing. Terex will receive $820m (E723m) in cash and 19.6m newly-issued Konecranes class B shares, making Terex a 25% shareholder. Based on 2015 financials, Konecranes and MHPS had aggregated sales of E3.517bn, adjusted EBITDA of E267m and a total workforce of approximately 19,000.
Konecranes believes the purchase will cement its position as a “focused global leader in the industrial lifting and port solutions market”.
The agreement can be terminated by Terex before May 31 for a $37m termination fee if it enters into, or believes that it will soon enter into, a legally binding merger agreement with Zoomlion Heavy Industries Science & Technology Co, another suitor for the company.
The deal is subject to regulatory approvals and shareholder approval at Konecranes’ extraordinary general meeting. If approved, it is expected to close in early 2017.
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