Volvo Construction Equipment Buys China-based Assets

Volvo Construction Equipment has acquired the hauler manufacturer Terex Equipment Ltd., including related assets and intellectual property in China.

The deal, which is subject to regulatory approval, includes the main production facility in Motherwell, Scotland, and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the U.S. as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co., which manufactures and sells rigid haulers under the Terex brand in China. NHL is listed on the Shanghai Stock Exchange.

In 2012, the businesses in the acquisition (excluding NHL) had net sales of approximately USD370 million and an operating income of approximately USD33 million.

The acquisition includes five models of rigid haulers, with proven designs and payloads ranging from 32 to 91 tons. The introduction of rigid haulers will extend Volvo CE's position in light mining.

If approved, the acquisition adds some 500 employees to Volvo CE's existing workforce. It also allows for the continued use of the Terex brand name on the relevant machines for a transitional period.

The transaction is expected to be finalized during the second quarter of 2014. For implementation, approval is required from relevant authorities.

You May Also Like

Leave a Reply

Your email address will not be published.