Terex sells truck business to Volvo for $160m
11 December 2013Terex Corporation has agreed to sell its truck business to Volvo Construction Equipment for cash proceeds of approximately $160 million. Terex’s truck business manufactures and sells off-highway rigid and articulated haul trucks.
Terex said that the sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the first half of 2014. The American manufacturer added that the manufacturing facility in Motherwell, Scotland would also be included in the transaction.
Ron DeFeo, Terex chairman and chief executive said: "Trucks no longer fit within our changing portfolio of lifting and material handling businesses. I am confident that the truck business will benefit by joining a company sharing similar competencies and offering complementary products and services.
"The sale of the truck business reflects our strategy to manage our portfolio of businesses and focus on those businesses that provide the greatest returns for our shareholders. We recently announced the initiation of quarterly cash dividends to our shareholders and a share repurchase program and the proceeds from this sale aid our efforts to improve our financial efficiency and implement these programmes."
