Tadano Buys the Demag Brand Crane Business
On 23 February Tadano Ltd. hereby officially announced the approval by its board of directors to enter into an agreement with Terex Corporation (Hereafter “Terex”), headquartered in the state of Connecticut in the United States, for a stock and asset acquisition of the Demag Brand Crane Business (Hereafter “Demag”), headquartered in Germany.
The agreement includes the stock acquisition of 8 subsidiaries of Terex, as well as the acquisition of certain assets related to the Demag Business. The total agreement price is approximately 215 million dollars (approximately 23.6 billion yen). The total agreement price is equivalent to the enterprise value and is subject to adjustment at closing. All yen-denominated values were calculated at the rate of 110 yen to the dollar.
Tadano plans to use a mixture of its own cash reserves and borrowed funds to secure the total cash to be used in the transaction payment. They plan to complete this acquisition, upon receipt of all necessary approvals in each related country, sometime during mid-2019.1. Reasons for the Stock and Asset Purchase The Tadano Group’s business domain is lifting equipment―mobile machinery used for lifting loads and carrying out aerial work. Tadano aim to become No. 1 worldwide in the lifting equipment industry as they engage in further global growth. Demag, which is currently a Terex brand, has over 100 years of history and experience in the design and manufacture of world-class, large-capacity all terrain cranes and crawler cranes.
Through the acquisition of Demag, Tadano further seeks to meet customer needs with the addition of lattice-boom crawler cranes to our product lineup, as well as the enhancement of our line of all terrain cranes. Tadano aim for a greatly expanded global presence as we strive toward our goal of becoming No. 1 worldwide in the lifting equipment industry. In August 2019, Tadano will celebrate the 100th anniversary of its founding. Along with our vision of “Pursuing further excellence for the world and the future,” we hold true to the tenets of our founders by delivering products that contribute to the greater world.