Bucyrus agrees to acquire mining division of Terex
US mining equipment manufacturer Bucyrus International has signed a definitive agreement to acquire the mining equipment business of Terex Corporation for US$1.3B in cash.
Terex can request to receive $300M of the purchase price in the form of Bucyrus shares, Bucyrus said.
The unit being sold includes highwall miners, underground longwall, room and pillar and transport machinery and has 38 facilities around the world.
“Through our extended product offering, we will continue to design and produce world-class machines and provide the best after-market support throughout the life of the equipment,” said Tim Sullivan, CEO of Bucyrus.
“We will expand our geographic footprint and diversify our portfolio of products across a broader range of commodities,” Sullivan said.
As a result of the transaction, Bucyrus will double its addressable market from roughly US$15B to over US$30B and create a team of approximately 10,000 people in nearly 100 locations around the world.
The acquisition, which does not require shareholder approval by either company, is expected to close during the first quarter of 2010.
