On June 20, Yanmar Holdings Co., Ltd concluded a final agreement with Terex Corporation to acquire Terex Corporation's German compact construction equipment business for approximately US $60 million.
Terex carries out the production and sale of wheel loaders, midi/mini excavators, wheel excavators, and other products in Europe through this business. Included in the acquisition is the manufacturing facility located in Crailsheim, Germany and the parts distribution center located in Rothenberg, Germany.
This acquisition will allow Yanmar to further develop their business in the small to medium sized construction machinery market in Europe by collectively using the sales and service networks, whilst also utisiling the top class production and product development know how of both companies.
The acquisition is expected to be completed during Autumn of 2016 after the approval of Terex's shareholders, regulating authorities and the completion of all other required procedures.
Takehito Yamaoka, President, Yanmar Holdings Co., Ltd. said "We are very happy to have concluded an agreement for the acquisition of Terex Corporation's small and medium sized construction machinery business, which possesses a strong Europe-based sales network and excellent products, including the distinguished German Schaeff series, in a move aimed at expanding the Yanmar Group's small to medium sized construction machinery business. I believe this tie-up will promote not only short term, but
also the long term growth of the Yanmar's construction machinery business, by expanding the Yanmar Group's portfolio and supplementing the sales network of our French subsidiary."
Our initial feelings towards this move is it's very positive. Yanmar are traditionally very strong in the zero tail swing market, will now be complimented by the demand for more conventional mini excavators. Also with a range of wheeled loaders as well as wheeled excavators being added to the overall product portfolio, this further expands Yanmar presence in the market quicker than through organic growth.