Manitou has agreed to buy Terex’s India-based compact equipment business in a move that will expand the French manufacturer’s reach.
Terex Equipment Private Limited (TEPL) manufactures backhoes, skid steers and wheel loaders in Greater Noida, India. In a statement announcing the purchase, Manitou says the business achieved a revenue of €30 million ($32 million) and has a “solid dealer network.”
No specifics on the deal were disclosed but the companies say it is expected to be completed this year.
For Terex, president and CEO John Garrison says the sale is a “milestone” in establishing a new era for the company which has streamlined its corporate structure significantly in the last two years. The company has sold off all of its earthmoving equipment to various manufacturers and now serves three segments: aerial work platforms (Genie), cranes (Demag and Terex) and materials processing (Powerscreen, Finley, Evoquip).
“For Terex, the sale of TEPL represents the disposition of the last significant asset held for sale in Terex’s former Construction segment,” Garrison says in a statement. “This is an important milestone in executing on Terex’s commitment 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.”
Manitou says the purchase will improve the company’s ability to reach emerging markets.
“This acquisition perfectly fits our strategy to reinforce our presence on emerging markets,” says Manitou president and CEO Michel Denis. “TEPL has a solid dealer network which we will continue to further develop. TEPL produces high-quality products with a very efficient spare parts and service organization, and will be a strong industrial base for Manitou Group to develop new product ranges for Asia and emerging countries.”