Terex Corp. and Konecranes Plc announced this morning that their board of directors have unanimously approved a definitive business combination that results in a merger of all stock. The combined company, Konecranes Terex Plc, will be incorporated in Finland. Terex shareholders will own approximately 60% of the combined company, and Konecranes shareholders will own approximately 40%. Konecranes and Terex will combine to create a single company with estimated pro forma 2014 revenues and EBITDA of $10.0 billion and $845 million, respectively.
The combined company is expected to increase competitiveness to rival low-cost players, capitalize on growth trends in the port and industrial sectors, bring a more robust portfolio of complementary products and customer solutions, promote further technology development and enhance R&D, and support growth and return of capital to shareholders through a strong balance sheet and cash flow generation.
Upon close of the transaction, which is expected to occur during the first half of 2016, Konecranes Terex Plc will appoint nine directors that comprises five Terex directors and four Konecranes directors. The Konecranes chairman and the Terex CEO will become, respectively, the chairman and CEO of the combined company at closing. The combined company will maintain headquarters in Westport, Conn., and Hyvinkää, Finland. Following completion of the transaction, Konecranes Terex Plc is expected to have approximately 32,000 employees worldwide. The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.
Source: Crane and Rigging Hot Line