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Terex announced today that it is selling off its roadbuilding equipment manufacturing operations in Brazil and certain mobile roadbuilding lines in the U.S. to the Fayat Group (Bomag and Marini).
Terex will divest its asphalt plants and pavers manufactured in Porto Allegre, Brazil, and assets for the asphalt paver, reclaimer stabilizer and material transfer product lines which are manufactured in Oklahoma City.
Manufacturing operations in Oklahoma City for Terex product lines not affected by the deal will continue.
“The decision to exit most of our roadbuilding product lines is another step in the repositioning of Terex,” said Ron DeFeo, Terex Chairman and Chief Executive Officer, in a prepared statement. “We continue to focus on improving our construction segment performance as well as the company’s overall returns on invested capital, and this transaction is part of that process.”
Terex says it has taken charges in connection with the assets being sold and the remaining Oklahoma City roadbuilding assets to reflect the likely value in a transaction.
Terex has yet to report its fourth quarter 2012 results. The company has announced that it will do so Tuesday, February 19. Terex says the amount of the charges that will impact Q4 is approximately $15 million.
Terex expects the transaction to close by the end of the first quarter of this year.