Terex Announces Talks With Zoomlion Terminated; Sale Of MHPS Business Proceed

(RTTNews) - Terex Corp. (TEX) announced discussions with Zoomlion Heavy Industry Science and Technology Co. regarding the purchase of Terex, either with or without the MHPS segment, have been terminated.

TEX is closed Thursday's regular trading at $24.33, down $0.87 or 3.45 percent. In the Friday Pre-Market trade, the stock is down $4.46 or 18.31 percent.

Terex also announced that the sale of its Material Handling and Port Solutions business or "MHPS" to Konecranes will proceed. The sale of MHPS to Konecranes for approximately $1.3 billion is subject to customary regulatory approvals and the approval of the shareholders of Konecranes, and is expected to close in January 2017.

"Unfortunately, after many months of discussions, Zoomlion was unable to provide a fully financed, binding proposal for the purchase of Terex with or without MHPS. This ends the prolonged period of uncertainty that this process has brought to Terex and its customers, team members and shareholders. The Board is confident in our global management team and with Terex's prospects for the future," said David A. Sachs, Chairman of the Board of Terex.

"The sale of the MHPS business to Konecranes will now proceed," said John L. Garrison, Terex President and Chief Executive Officer. "We expect this sale to be accretive to Terex's earnings per share. The proceeds will significantly reduce Terex's debt levels and improve our balance sheet, providing us with the ability to buy back shares and invest in our remaining businesses."