Terex Corp. has agreed to sell its India-based compact construction business to Manitou BF. Manitou manufactures a wide range of compact construction and material handling equipment. Terex’s India-based unit – Terex Equipment Private Limited – manufactures and sells backhoe loaders, wheel loaders and skid-steer loaders.
The sale is subject to customary closing conditions and is expected to be finalized in the first half of 2017.
“We are pleased to enter into this agreement with Manitou,” said John Garrison, Terex president and CEO. “Manitou is a strong strategic buyer with the resources and desire to further grow the business as an industrial base for Asia and emerging markets. For Terex, the sale of TEPL represents the disposition of the last significant asset held for sale in Terex’s former Construction segment. This is an important milestone in executing on Terex’s commitment to focus our portfolio on those product categories where Terex has a significant presence in the market and that can provide the greatest returns for our shareholders.”
Terex has reduced its product portfolio to focus on aerial work platforms, cranes and material processing products. In 2016, Terex completed the sale of its German compact construction business to Yanmar for $60 million in case, including a manufacturing facility and a parts distribution center in Germany. In January, Terex completed the sale of its Material Handling & Ports Solutions business to Konecranes. In 2014, Terex sold its rigid and articulated hauler business to Volvo CE for $160 million.
