A major international quarry plant manufacturer has announced plans to merge with a global lifting equipment supplier \u2013 a move that could potentially lead to improvements in locally distributed machinery.
\nThe boards of Terex Corporation and Konecranes have agreed on terms for a proposed merger, which would lead to the formation of a single combined entity, Konecranes Terex.<\/p>\n
Konecranes is a Finland-based group of international lifting businesses, which operates from 600 locations across 48 countries.<\/p>\n
The new merged company would be incorporated in Finland, with Terex shareholders owning approximately 60 per cent and Konecranes shareholders owning the remaining 40 per cent.<\/p>\n
It is estimated the combined entity would have $USD10 billion ($AUD13.8 billion) in revenue and $USD845 million ($AUD1.2 billion) in earnings before interest, taxes, depreciation and amortisation. The merger is expected to generate at least $USD119 million ($AUD163.7 million) in annual operational synergies within three years.<\/p>\n
Scaling up
\nIn addition to improving the companies\u2019 financial standing, the corporate union is expected to yield a number of operational benefits. Chief among these is increased global scale, which is expected to improve competitiveness, allow for enhanced technological research and development, and result in a broader presence in key industry sectors through the companies\u2019 complementary geographic profiles.<\/p>\n
\u201cWith a focus on lifting and material handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenue and margins through several strategic advantages, including significant cross-selling opportunities,\u201d Konecranes chairman Stig Gustavson commented. \u201cTogether, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future.\u201d<\/p>\n
Terex CEO Ron DeFeo added, \u201cWe [Terex] have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.\u201d<\/p>\n
Ron DeFeo will be appointed as CEO of the combined company, with Gustavson to assume the role of chairman. Terex and Konecranes\u2019 respective head offices in Connecticut, US and Hyvink\u00e4\u00e4, Finland will be retained as the new company\u2019s dual headquarters.<\/p>\n
Local impact
\nTerex is a global lifting and materials handling solutions company that services various industries, including the quarrying, mining, construction and infrastructure sectors. It owns several companies that supply the Australian quarrying industry, including crushing and screening plant manufacturers Powerscreen, Terex Finlay and Terex Minerals Processing Systems (MPS), and minerals washing solutions provider Terex Washing Systems.<\/p>\n
Within Australia, Terex Finlay mobile plant and Terex Washing Systems products are available through OPS Screening and Crushing Equipment in Western Australia and the Northern Territory, and through Finlay Screening and Crushing on the east coast of Australia, including South Australia and Tasmania. Terex MPS is responsible for the provision of fixed and modular crushing and screening plant to the Australian market and Lincom Group is the local distributor for Powerscreen.<\/p>\n
While it is still early days for the merger (it is subject to various regulatory approvals and must gain the support of both Terex and Konecranes\u2019 shareholders), it is possible the resultant increase in Terex\u2019s resources could lead to flow-on benefits for the local quarrying industry by way of improved equipment and service.<\/p>\n
The merger is expected to reach completion in the first half of 2016.<\/p>\n","protected":false},"excerpt":{"rendered":"