Compact construction equipment firm Terex is selling its business to Groupe Mecalac, which has facilities in France, Germany and Turkey
The Terex Corporation has revealed plans to sell its UK-based business to a subsidiary of Groupe Mecalac. The firm, which manufactures a range of compact construction equipment for urban, utility and railway construction sites, has facilities across Europe.
Terex is based in Coventry. It manufactures and sells backhoe loaders, site dumpers, and compact compaction rollers. It is expected the sale will be finalised in the first half of next year, as customary closing conditions are completed.
Mecalac is the right fit
President and CEO of US-based Terex John Garrison said the decision to sell to Mecalac was the right one, as the firm was a “logical strategic buyer” that has the resources to grow the business further.
He added: “For Terex, the sale of the Coventry compact construction business represents continuing progress 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.”
Terex also recently sold its German compact equipment business to Japanese producer Yanmar in a €53 million deal.
Gregg Horne, general manager of the Coventry business, said: “We are pleased and excited about the opportunity to join the Mecalac family.
“They embrace our vision of market growth and product innovation for the Coventry products, and share the same values in terms of quality and team working.”
He added: “It will be very much business as usual for us and for our dealers, and we are working towards a seamless transition during the first half of 2017.”
Strategy for growth
CEO of Mecalac Henri Marchetta said: “This acquisition follows our growth strategy, based on excellence, on the broadening of our range of equipment for urban construction sites, and on international distribution deployment.
“Our intent is to foster the sharing of expertise, the development of industrial and sales synergies, and to encourage cultural exchanges along with sharing our fundamental values among the teams.”
