Officials at Volvo Construction Equipment have acquired the hauler business from Terex Corp. to improve its earthmoving segment and light mining presence. The off-highway deal for manufacturer Terex Equipment Ltd. is worth $160 million in cash, including five rigid hauler models with designs and payloads from 32 tons to 91 tons.
Volvo CE President Pat Olney said changes will complement current offerings in construction, hydrocarbons, aggregates and road-building. “This offers considerable scope for growth,” he said in a statement. “The addition of well-respected rigid haulers extends earthmoving options.”
The debt-free deal pending Q2 2014 includes a main production Scottish-located facility and two product ranges of rigid and articulated haulers. It further includes U.S. hauler distribution and a 25% holding in the Inner Mongolia North Hauler Joint Stock Co., a manufacturer and seller of rigid haulers in China. In 2012, the businesses had net sales of $370 million and operating income of $33 million; by Q3 2013, net sales totaled $172 million and operating income was $5.5 million.
The acquisition, said company representatives, adds 500 employees to Volvo CE’s existing workforce, with continued use of Terex’s brand name on machines during a transition. The deal contains three other models of haulers added to Volvo’s portfolio, with payloads ranging from 25 tons to 38 tons.