11 February 2013, 00:00
WESTPORT, CT, February 11, 2013 - Terex Corporation (NYSE: TEX) today announced that it has entered into a contract to divest its Roadbuilding operations in Brazil and certain mobile roadbuilding product lines in the U.S. to the Fayat Group (Bomag and Marini). Product lines being divested include asphalt plants and pavers manufactured in Porto Allegre, Brazil, and assets for the asphalt paver, reclaimer stabilizer and material transfer product lines which are currently manufactured in Oklahoma City. The transaction is anticipated to close during the first quarter.
Terex has determined that it will be exiting the remaining roadbuilding product lines that it manufactures in Oklahoma City, and has taken charges in connection with the business assets being sold and the remaining Oklahoma City roadbuilding assets to reflect the likely realizable value in a transaction. The amount of these charges that will impact the fourth quarter 2012 results, when reported, is approximately $15 million. Terex will continue manufacturing operations in Oklahoma City for its product lines not affected by this transaction.
Ron DeFeo, Terex Chairman and Chief Executive Officer, commented "The decision to exit most of our roadbuilding product lines is another step in the repositioning of Terex. We continue to focus on improving our Construction segment performance as well as the Company's overall returns on invested capital, and this transaction is part of that process."
Forward Looking StatementsThis press release contains forward-looking information based on the current expectations of Terex Corporation. Because forward-looking statements involve risks and uncertainties, actual results could differ materially. Such risks and uncertainties, many of which are beyond the control of Terex, include those factors that are more specifically set forth in the public filings of Terex with the Securities and Exchange Commission. Actual events or the actual future results of Terex may differ materially from any forward looking statement due to those and other risks, uncertainties and significant factors. The forward-looking statements speak only as of the date of this press release. Terex expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statement included in this press release to reflect any changes in expectations with regard thereto or any changes in events, conditions, or circumstances on which any such statement is based.