Terex Corp. has completed its acquisition of Demag Mobile Cranes GmbH & Co. KG, a manufacturer of mobile telescopic and lattice boom cranes.
“Besides being financially attractive, the Demag acquisition fills certain strategic needs within our crane group,” said Terex chairman and CEO Ron DeFeo. “Demag improves our position in the all-terrain crane market, a market category that has seen growth over the past several years and provides leading market positions in the 300-ton to 1,600-ton lattice boom crane category.”
Fil Filipov, president of Terex Cranes, will assume responsibility for Demag as it becomes part of the Terex Cranes Group. “The addition of Demag also enables us to offer our customers a full range of cranes to meet their needs, including the larger and higher technology cranes where we have not had a significant market presence,” Filipov said. “This acquisition also provides us with substantial opportunities for cost savings, and we have currently targeted $20 million of cost savings through synergies, outsourcing of non-core activities, streamlining of the organization and production processes, improvements in purchasing and management of working capital, all without sacrificing product support or other customer needs.”
