February
13, 2013, Westport, Conn. – Terex Corporation announced that it has entered
into a contract to divest its roadbuilding operations in Brazil and certain
mobile roadbuilding product lines in the U.S. to the Fayat Group (Bomag and
Marini).
February
13, 2013, Westport, Conn. – Terex Corporation announced that it has entered
into a contract to divest its roadbuilding operations in Brazil and certain
mobile roadbuilding product lines in the U.S. to the Fayat Group (Bomag and
Marini). Product lines being divested include asphalt plants and pavers
manufactured in Porto Allegre, Brazil, and assets for the asphalt paver,
reclaimer stabilizer and material transfer product lines, which are currently
manufactured in Oklahoma City. The transaction is anticipated to close during
the first quarter.
Terex
has determined that it will be exiting the remaining roadbuilding product lines
that it manufactures in Oklahoma City, and has taken charges in connection with
the business assets being sold and the remaining Oklahoma City roadbuilding
assets to reflect the likely realizable value in a transaction. The amount of
these charges that will impact the fourth quarter 2012 results, when reported,
is approximately $15 million. Terex will continue manufacturing operations in
Oklahoma City for its product lines not affected by this transaction.
Ron
DeFeo, Terex Chairman and Chief Executive Officer, commented, “The decision to
exit most of our roadbuilding product lines is another step in the
repositioning of Terex. We continue to focus on improving our construction
segment performance as well as the Company’s overall returns on invested
capital, and this transaction is part of that process.”
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