Bucyrus complete acquisition of Terex mining business
Wednesday, February 24, 2010 - 09:38
BUCYRUS International Inc., have completed the previously announced (22 Dec) acquisition of the mining equipment business of Terex Corp. for US$1 billion in cash plus approximately 5.8 million shares of Bucyrus common stock.
The products divested by Terex include hydraulic mining excavators, electric-drive mining trucks, blasthole drills and highwall miners – commonly known as O&K, Unit Rig, Reedrill, Superior Highwall, Halco and Hypac – as well as related parts and after-market service businesses, including the company-owned distribution locations.
Bucyrus say the deal will double their addressable market from approximately US$15 billion to over US$30 billion and position the company as the world’s leading supplier of mining equipment, creating a team of approximately 10,000 people in nearly 100 locations around the world.
Commenting on the transaction, Tim Sullivan, president and CEO of Bucyrus, described it as a natural extension of the company’s current operations, while Terex chairman and CEO Ronald M. DeFeo said it was a positive step toward the transformation of Terex Corp. into a machinery and industrial products business.