Concrete Products

SEP 2015

Concrete Products covers the issues that attract producers of ready mixed and manufactured concrete focusing on equipment and material technology, market development and management topics.

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30 • September 2015 www.concreteproducts.com Eyeing global scale and near-term earnings syn- ergy upward of $120 million, Westport, Conn.- based Terex Corp. and Konecranes Plc of Helsin- ki plan an all-stock "merger of equals," creating a company whose 2014 revenues totaled about $10 billion. Terex and Konecranes sharehold- ers will own approximately 60 percent and 40 percent of the combined business, respectively, which will operate as Konecranes Terex Plc, with headquarters in Finland and major corporate functions in Connecticut. The combination unites what officials note are two complementary leaders in cranes, mate- rials handling, and equipment servicing solu- tions. Konecranes Terex will log about 37 per- cent of sales in the Americas and a near-equal share in Europe, the balance derived from the rest of the world. Construction will represent a projected 8 percent of the overall combined business, against 11 percent under Terex Corp. Management anticipates Konecranes Terex to build shareholder value through: increased global scale with enhanced competitiveness to rival low-cost emerging market players; broader presence in key sectors with greater opportuni- ty to capitalize on growth trends in the port and industrial sectors, plus services; more robust portfolio of complementary products and cus- tomer solutions; critical scale for further tech- nology development; significant operational and corporate synergies, plus complimentary geographic profiles; and, strong balance sheet and cash flow generation. "This merger brings together two great busi- nesses and through synergies provides another lever that is within our control to deliver val- ue-creation to shareholders," says Terex CEO Ron DeFeo, who will maintain his title with Konecranes Terex. "We have a deep respect for BRIEFS MANUFACTURERES Post-tax savings accompany Terex 'inversion' in Konecranes merger The industry's charter front discharge nameplate, Advance, is part of Terex Construc- tion. Konecranes engineers forklift trucks in the 10- to 80-ton capacity range for pre- cast concrete operations. 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." "With a focus on lifting and materi- al 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 oppor- tunities," adds Konecranes Chairman Stig Gustavson, whose title will likewise car- ry into the merger. "There is a common culture between the two organizations, with both companies having long histo- ries of designing competitive and innova- tive solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger." Upon close of the transaction, the com- bined company will appoint a nine-mem- ber board of five Terex and four Konecranes directors. Konecranes Terex is expected to have approximately 32,000 employees worldwide, and will trade on the New York Stock Exchange and Nasdaq Helsinki.

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