VOLVO Construction Equipment has agreed to buy Terex’s truck business, Terex Equipment Ltd, for $160 million.
The deal, subject to regulatory approval, includes the main production facility in Motherwell 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, which makes and sells rigid haulers under the Terex brand in China.
If approved, the acquisition adds some 500 employees to Volvo CE’s existing workforce
Volvo CE’s president, Pat Olney said, “This is a strategic acquisition that offers Volvo CE considerable scope for growth. The addition of a well-respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications at a time of renewed confidence in the sector. The addition of TEL’s articulated hauler range will enhance our position in this segment, particularly in high-growth markets.
“We believe the Motherwell facility and its global team members, as well as the current distribution partners, are valuable to the success of the business in the future.”
