Tadano to Buy Demag Mobile Crane Business
Tadano will buy the Demag mobile crane business from Terex Corp. for approximately $215 million, according to Terex. The deal includes manufacturing facilities in Zweibrucken, Germany, and multiple sales and service locations. Cranes will no longer be built in Oklahoma City, but the plant will continue to produce telehandlers, remanned MEWPs, and material-processing equipment, according to the company.
Demag manufactures all-terrain cranes and crawler cranes.
“The Demag Mobile Cranes business has been part of our company for almost two decades and produces world-class products,” said John L. Garrison, Terex chairman/CEO in a prepared statement. “The dedicated Demag® Mobile Cranes team members have made significant contributions to Terex and to the crane industry. The sale is based on strong industrial logic, as the Demag Mobile Cranes business will become part of a global crane company with complementary products and capabilities. We are pleased to have entered into this agreement with Tadano, a strategic buyer who values the Demag Mobile Cranes brand, technology, distribution network and team members.”
The deal extends the Tadano product line, said Koichi Tadano, Tadano representative director, president, and CEO in a prepared statement:
“This is a strategic acquisition that offers Tadano considerable scope for growth. The addition of the well-respected Demag brand of all-terrain cranes and large crawler cranes range extends our product lines and options for customers. The addition of the Demag branded mobile crane product lines will enhance our global position in this segment. We believe that the Zweibrucken facilities and its global team members, as well as the current distribution partners, are valuable to the future success of the business.”
Terex will continue to manufacture Terex Utilities products at its Watertown, South Dakota, facilities. Terex will also continue to manufacture rough terrain cranes for the global market in Crespellano, Italy; tower cranes in Fontanafredda, Italy; and pick and carry cranes in Brisbane, Australia.
Source: Terex Corp.
