Volvo Construction Equipment to Buy Hauler Business from Terex

Swedish truck and construction equipment maker Volvo AB (VOLV-B.SK) said Monday it has agreed to acquire the off-highway hauler business of the Terex Corporation (TEX) for about $160 million on a cash and debt free basis.

 
   MAIN FACTS: 

-The acquisition is intended to improve Volvo Construction Equipment's penetration in the core earthmoving segment and extend its presence in light mining, Volvo said.

-The deal includes the main production facility in Motherwell, Scotland and two product ranges that offer both rigid and articulated haulers.

-It also includes the distribution of haulers in the U.S. as well as a 25.2% holding in Inner Mongolia North Hauler Joint Stock Co (NHL), which manufactures and sells rigid haulers under the Terex brand in China.

-In 2012, the businesses in the acquisition, excluding NHL, had net sales of approximately $370 million and an operating income of approximately $33 million.

-In the first nine months of 2013 net sales amounted to approximately $172 million and operating income was approximately $5.5 million.

-The transaction is expected to be finalized during the second quarter of 2014. For implementation, approval is required from relevant authorities.

-The acquisition will increase the Volvo Group Industrial Operation's net financial debt by SEK 1 billionillion.

-At 1144 GMT, shares were up 0.1% at SEK83.60.

Write to Niclas Rolander at [e-mail]; Twitter: @WSJNordics

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