Terex and Caterpillar announced Tuesday they have reached a non-binding agreement for Caterpillar to acquire Terex’s electric-drive mining truck business, and for Terex to acquire Caterpillar’s 5000-series mining shovel property.
As part of the agreement, Caterpillar will acquire Terex’s eight-model line of DC and AC electric-drive mining trucks, which will continue to be sold under the Payhauler and Unit Rig brand names. The trucks will be distributed and supported through Caterpillar dealers.
Under the marketing plan, Terex will purchase the intellectual property, including patents and designs, for Caterpillar’s 5110B, 5130B and 5230B models of hydraulic excavator mining shovels. Terex will continue to manufacture its seven-model line of hydraulic mining shovels, which will be distributed and serviced through the Caterpillar network. Cat dealers will be responsible for the support of existing O&K shovels.
“Caterpillar and Terex intend to realign these businesses in order for each to concentrate on their strengths,” said Ronald DeFeo, Terex chairman.
Caterpillar plans to assemble what is left of its shovel inventory and then stop manufacturing the 5000-series mining shovels. Cat dealers will, however, provide ongoing technical and product support for existing 5000-series shovels.
“We are committed to supporting all users of Cat 5000-series shovels so they receive full value from their equipment,” said Richard Benson, president of Cat’s global mining division.
In separate transactions, certain Caterpillar dealers will purchase Terex’s product support businesses related to the Payhauler and Unit Rig mining trucks and O&K mining shovels.
Because the agreement between the two companies is non-binding, the completion of the plan is subject to certain contingencies, including a satisfactory due diligence, regular review and the execution of the agreement. Financial terms were not disclosed.
