Westport’s Terex Corporation, the world’s No. 3 maker of heavy earth-moving equipment, is to sell its mining business for $1.3 billion cash to mining equipment maker Bucyrus International Inc., the companies said today.
The unit being sold, which includes hydraulic mining excavators and electric drive mining trucks, has 38 facilities around the world with approximately 2,150 employees.
South Milwaukee, Wisc.-based Bucyrus said the deal would create a “premier supplier of mining equipment.”
Terex can request to receive $300 million of the purchase price in the form of Bucyrus shares, Bucyrus said.
“This transaction accelerates the transformation of Terex Corporation as we move from a construction and mining equipment company to a machinery and industrial products business,” said Ronald M. DeFeo, Terex chairman and CEO.
“Going forward, we will focus on products and services where we can maintain and build superior customer propositions with high returns on capital for our owners.
“The current environment plus this transaction provide an excellent opportunity to create value. We plan to execute the changes needed to make this happen.”
