Friday, February 5, 2016

Konecranes and Terex boards approve merger

Konecranes and Terex Corporation announced that both their board of directors have unanimously approved an agreement to combine their businesses in a merger.

The merged company, to be called Konecranes Terex Plc, will be a leading global lifting and material handling solutions company, according to Konecranes, with estimated combined 2014 revenues and EBITDA of $10.0 billion and $845 million.

The companies say their integration teams are making progress in detailing planned operational opportunities to achieve cost savings.

Konecranes says the stock market undervalues
the value-creation potential of the merger. It says Konecranes Terex Plc is expected to deliver

significant profitability based on expected market growth and ongoing internal improvement initiatives. It said the combined company will also have a solid capital structure and the ability to generate strong cash flow and shareholder returns through dividends and share repurchases.

In January 2016, the parties obtained antitrust clearances in India and Turkey. They have also submitted the merger-related HSR filing to the U.S. Department of Justice and are in filing preparation and pre-notification discussions with the European Commission.

The transaction remains subject to approval by both Terex and Konecranes shareholders, regulatory approvals and other closing conditions. Closing of the transaction is expected to occur approximately mid-year 2016.

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