Volvo acquires Terex hauler business
Terex announced its intention to sell the production of rigid-frame off-highway articulated trucks to Volvo Construction Equipment for $160 million cash deal. The finalization of the deal is scheduled for the first half of the next year. For Volvo Construction Equipment the acquisition will improve its position in the light mining segment and heavy earthmoving segment, as well as the following markets: oil and gas, agricultural and road-building equipment.
Terex sells its truck manufacturing facility in Motherwell, Scotland, as well as the distribution network necessary for further business development. During a transitional period, the brand Terex will be retained.
Terex product range includes five rigid-frame trucks from the 31.8-ton TR35 to 91-ton TR100. As for the articulated truck, Terex line features three models from the 27.5 tons (TA250) to 41.9 tons (TA400).
According to Volvo, Terex hauler business had in the 2012 year the net sales of $370 million and operating profit of $33 million. During the first nine months of this year sales of trucks Terex totaled $172 million.