Volvo Construction Equipment has now finalised its acquisition of the hauler business from Terex. The purchase consideration amounted to US$160 million on a cash and debt-free basis. The deal includes the main production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the US as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the
June 2, 2014
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7659 Volvo Construction Equipment has now finalised its acquisition of the hauler business from 1222 Terex. The purchase consideration amounted to US$160 million on a cash and debt-free basis. The Deal includes the main production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers. It also includes the distribution of haulers in the US as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China. In 2013, the acquired businesses (excluding NHL) had net sales of approximately $228 million and an operating income of around $9.5 million. The Deal is of significance in that it provides Volvo CE with a range of rigid haul trucks. The Deal also brings with it the Terex range of articulated haulers, but given Volvo CE’s strong position in this market segment, it remains to be seen what will unfold. It is possible Volvo CE will continue to build the Terex-designed ADTs for some emergent markets as part of its SDLG brand and focus on its own range for mature markets for these machines.
