Terex launches $1.25-bn hostile bid for Germany’s Demag Cranes
19 May 2011
Terex Corp today said that its German subsidiary, Terex Industrial Holding AG, today made a voluntary cash public tender offer for the outstanding share capital of Demag Cranes at €41.75 per share, in a bid valued at $1.25 billion.
The proposed offer represents a premium of approximately 41 per cent to the last share price, prior to the speculation regarding possible takeover interest in Demag, on 6 October 2010 of €29.65, and a premium of 15 per cent to the closing price on 29 April 2011 of €36.30.
Earlier this month, Terex offered €41.75 a share for Demag to expand into harbour cranes and after talks with Demag failed to secure a deal, today took its offer directly to shareholders.
Düsseldorf-based Demag is one of the world's leading suppliers of industrial cranes and crane components, harbour cranes and terminal automation technology.
Services, in particular maintenance and refurbishment, are another key element of Demag's business activities. Demag is divided into the business segments like industrial cranes, port technology and services and has strong and well-established Demag and Gottwald brands.
Westport, Connecticut-based Terex is a diversified global manufacturer operating in four business segments, Aerial Work Platforms, Construction, Cranes, and Materials Processing.
Terex manufactures a broad range of equipment for use in various industries, including the construction, infrastructure, quarrying, mining, shipping, transportation, refining, energy and utility industries.
Terex has a market capitalisation of about $3.8 billion. It employs around 16,300 people and generated net sales of $4.4 billion in 2010.
