WESTPORT, Conn. — Terex Corp. announced that it will acquire Atlas Weyhausen and The Schaeff Group.
Atlas Weyhausen is a leading German manufacturer of wheeled excavators and truck mounted articulated cranes with estimated 2001 revenue of approximately $180 million. The Schaeff Group is a leading German manufacturer of compact construction equipment and full range of scrap material handlers with estimated 2001 revenues of approximately $220 million.
Both transactions are anticipated to close during the fourth quarter of 2001 or early in 2002.
“The acquisition of Atlas Weyhausen and The Schaeff Group provides an enormous opportunity for us,” commented Ronald DeFeo, Terex chairman and CEO. “We expect these acquisitions will add $400 million in annual revenues and will be accretive by 25 cents to 30 cents per share after planned cost reductions are implemented. These acquisitions will also provide distribution synergies between Atlas and Schaeff, as well as other Terex products that are under-represented in Germany.”
Fil Filipov, Terex executive vice president, will be responsible for the restructuring of both of these businesses. Filipov has been advising Atlas shareholders over the past few months. “The process of lowering the costs of Atlas is well under way,” said Filipov.
“Specifically, we have identified about $41 million of cost reduction initiatives, with about $24 million already implemented at Atlas through our consulting assistance.”
According to Terex, Atlas and Schaeff both add products that fill gaps in the Terex portfolio. Atlas competes primarily in two product categories: wheeled excavators from 11 to 20 tons and truck mounted articulated cranes. Schaeff competes primarily in four product categories: mini-excavators ranging from 1.5 to 5.5 tons, midi-excavators ranging from 6.5 to 11 tons, wheel loaders ranging from 50 to 140 horsepower, and scrap material handlers ranging from 20 to 65 tons.
