Bucyrus International Inc. — a designer/builder of equipment for surface and underground mining — will pay $1.3 billion in cash to acquire the mining business of its competitor Terex Corp. The two firms have a definitive agreement that allows Terex to receive $300 million of the purchase price in the form of Bucyrus shares.
Milwaukee-based Bucyrus said its purchase will make it “the premier supplier of mining equipment.” It means Bucyrus will offer a portfolio of products that includes walking draglines, electric rope shovels, hydraulic excavators, off-the-highway haul trucks, high-wall miners, underground long-wall, room and pillar and transport machinery, and drills and belt systems for all mining applications. Its current line-up of surface and underground mining equipment will be enhanced with parts, consumable products and after-market support capabilities.
Terex chairman and CEO said the sale speeds the groups transformation from a construction and mining equipment manufacturers to a machinery and “This transaction accelerates the transformation of Terex Corporation as we and industrial products business.DeFeo said Terex we will focus on products and services where it can maintain and build superior customer propositions with high returns on capital.
"We are extremely excited about acquiring Terex Mining and we believe that this is a unique opportunity to build an even stronger company for our customers, employees and shareholders," stated Bucyrus CEO Tim Sullivan.
Sullivan said customers will benefits from his company’s acquisition because Bucyrus will be able to offer “a broad, complementary product line that is driven by technology, quality, and first-class service.”