Terex Corp. said today it will sell its truck business to Volvo Construction Equipment for cash proceeds of approximately $160 million. The truck business manufactures and sells off-highway rigid and articulated haul trucks.
The sale, which is subject to government regulatory approvals and other customary closing conditions, is targeted to close in the first half of 2014.
“The truck business has been an important part of our company for more than three decades and continues to produce world-class products,” said Ron DeFeo, Terex chairman and CEO. “However, trucks no longer fit within our changing portfolio of lifting and material handling businesses. I am confident that the truck business will benefit by joining a company sharing similar competencies and offering complementary products and services. We are pleased to have entered into this agreement with Volvo, which represents a strong strategic buyer for the business who values our distribution network and team members.”
Volvo Construction Equipment’s president, Pat Olney said, “This is a strategic acquisition that offers Volvo CE considerable scope for growth. The addition of Terex’s articulated hauler range will enhance our position in this segment, particularly in high-growth markets.”