Terex Corp (TEX)

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Genie parent Terex to merge with Konecranes

  

Originally published August 11, 2015 at 9:59 amUpdated August 11, 2015 at 11:08 am

The alliance of Terex and Finnish competitor Konecranes is a response to a slowdown in demand for lifting gear and heightened competition from Chinese manufacturers.

By Phil Serafino, Aaron Kirchfeld

Matthew Monks

Bloomberg News

Terex, a U.S. maker of cranes and construction machinery, agreed to combine with Finnish competitor Konecranes to create a crane and materials-handling supplier with a combined $10 billion in sales and greater global reach.

Westport, Conn.-based Terex is the parent of Genie Industries, which makes boom lifts, scissor lifts and other equipment at plants in Moses Lake and Redmond that employ a couple thousand people.

Terex stockholders will receive 0.8 of a Konecranes share for each of their shares, the companies said in statements Tuesday. That values Terex at about $30.19 a share, based on Monday’s closing price for Konecranes, or 38 percent above where Terex shares finished the day.

The alliance is a response to a slowdown in demand for lifting gear and heightened competition from Chinese manufacturers, which have increased capacity and are looking further afield for contracts amid the prospect of a slowing domestic market. The companies have highlighted $121 million in annual savings as they combine their operations.