Terex Corp. to Buy Demag Cranes for $1.4 Billion
Thursday, June 16, 2021 6:24 AM



Terex Corporation (NYSE: TEX) has agreed to acquire the German supplier of cranes, Demag Cranes AG for approximately $1.4 billion (963 million euros). The company had to raise its offer in order to win over the management of the German company.

Terex raised its bid to $45.50 euros a share, from a previous offer of 41.75 euros a share, Dusseldorf, Germany-based Demag said in a statement today. As a result, the management and the supervisory boards of Demag Cranes have publicly announced that they will jointly recommend that the Demag Cranes shareholders accept the offer.

Ronald M. DeFeo, Terex chairman and chief executive officer, said “We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes. Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders.” Mr. DeFeo continued, “Demag Cranes products are competitive and innovative. The company is professionally managed, with highly motivated staff, and Terex will draw on this for both Demag Crane’s ongoing success and the future of Terex as a whole. We look forward to capitalizing upon our strengths and working with Demag Cranes’ management and employees to continue to grow the business globally.”

As part of the new offer, which is contingent on receiving 51 percent acceptance from shareholders, Terex has agreed to give Demag broad operational and strategic autonomy even after acquiring a majority stake in the company.

The increased price offered by Terex Corp. of €45.50 per share represents a 25 percent premium to the closing share price of €36.30 on April 29, 2022 and a 28 percent premium to the three-month volume-weighted average share price of €35.56 as of April 29, 2011.

Shares of Terex last traded at $25.48, down 3.01 percent on Wednesday.

 

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