WESTPORT, Conn. — Westport-based construction giant Terex Corp. announced Tuesday it will merge with Finnish firm Konecranes Plc to create a crane and materials-handling supplier with a combined $10 billion in sales.
The announcement came Tuesday that both company's Boards of Directors had unanimously approved a definitive business combination agreement and a resulting all-stock merger.
The combined company will maintain significant headquarters in Westport and Hyvinkää, Finland, with 32,000 employees worldwide.
The transaction is subject to approval by Terex and Konecranes shareholders and regulatory approvals. The deal is expected to close during the first half of 2016.
Upon completion of the transaction, Terex shareholders will own 60 percent of the combined company and Konecranes shareholders will own 40 percent. The new company will be named Konecranes Terex Plc and will be incorporated in Finland.
“This merger brings together two great businesses," said Terex CEO Ron DeFeo. "We have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.”
The combination will bring together two complementary leaders in cranes, materials handling, and equipment servicing solutions to create a premier industrial company, the companies said in a statement.
"The combination of Konecranes and Terex is a defining step in the history of both companies," said Stig Gustavson, chairman of Konecranes. "With a focus on Lifting and Material Handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenue and margins through several strategic advantages, including significant cross-selling opportunities. ... Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future."
The merger will create a single company with estimated 2014 revenues of $10 billion, the companies said in a statement.
Terex is a diversified global manufacturer reporting in five business segments: Aerial Work Platforms, Construction, Cranes, Material Handling & Port Solutions and Materials Processing.
Konecranes is a world-leading group of Lifting Businesses, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals.
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