EC35C compact excavator is one of the many products manufactured by Volvo Construction Equipment. The company recently purchased Terex Equipment Ltd.
Photo Courtesy of Volvo Construction Equipment

Volvo Construction Equipment has agreed to acquire hauler equipment manufacturer Terex Equipment Ltd., for a purchase consideration of about $160 million on a cash and debt-free basis. The deal, which is subject to regulatory approval, includes Terex's main production facility in Motherwell, Scotland and two product ranges that include rigid and articulated haulers.

Additionally, the deal includes distribution of haulers in the U.S., as well as a 25.2 percent holding in Inner Mongolia North Hauler Joint Stock Co., which maufactures and sells rigid haulers under the Terex brand in China.

"This is a strategic acquisition that offers us considerable scope for growth," said company president Pat Olney. "The addition of a well-respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications."

The acquisition includes five models of rigid haulers, with payloads ranging from 32 to 91 tons. The introduction of rigid haulers will extend the company's position in the light mining segment. The deal also sees a further three models of articulated haulers added to the Volvo portfolio, with payloads ranging from 25 to 38 tons.

If approved, the acquisition adds some 500 employees to Volvo CE's existing workforce. It also allows for the continued use of the Terex brand name on the relevant machines for a transitional period. The transaction is expected to be finalized during the second quarter of 2014. For implementation, approval is required from relevant authorities. For more information visit www.volvoce.com or www.terex.com.