Terex announced today that it has agreed to sell its German compact construction business to Yanmar.
The deal is for $60 million cash and is expected to close in the second half of this year.
Terex’s compact construction business makes and sells midi/mini excavators, wheeled excavators and compact wheel loaders. As part of the deal, Yanmar will also receive the Crailsheim, Germany, manufacturing facility and a parts distribution center in Rothenburg, Germany.
Yanmar says the acquisition will “further actively develop its business in the the small- to medium-sized construction machinery market in Europe by collectively utilizing the sales and service networks, and the industry’s top-class product development and production knowhow of both companies.”
The sale of the compact equipment business comes three weeks after acquisition talks broke down between Terex and Chinese equipment maker Zoomlion. Though Zoomlion wooed Terex away earlier this year from a deal struck in 2015 to sell the company to Finnish manufacturer Konecranes, Zoomlion walked away from the talks after the two sides were unable to agree upon a fair price for the company.
Complicating matters was Terex’s decision to agree to sell its Material Handling & Port Solutions business to Konecranes before officially starting talks with Zoomlion.
Following completion of the sales to Konecranes and Yanmar, Terex’s construction division will consist of skid steers, compact track loaders, backhoes and some specialty material handlers.
“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,” said John L. Garrison, Terex president and CEO. “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.”