Terex Corporation has announced that its German subsidiary, Terex Industrial Holding AG, Dusseldorf, has decided to make a voluntary cash public tender offer for the outstanding share capital of Demag Cranes AG at EUR 41.75 per share. The proposed offer price represents a premium of approximately 41 percent to the last undisturbed share price, prior to the speculation regarding possible takeover interest in Demag, on October 6, 2010 of EUR 29.65, and a premium of 15 percent to the closing price on April 29, 2011 of EUR 36.30.
"Demag is a leader in industrial cranes and port technology, and our companies are highly complementary. By combining our businesses, we would add a new product category of industrial cranes and hoists, and create the leading worldwide player in port equipment," said Ronald M. DeFeo, Terex Chairman and Chief Executive Officer. "Demag products are competitive and innovative. The company is professionally managed, with highly motivated staff,
“Terex intends to build on the strong brand and service franchise of Demag in Germany and abroad. This transaction is predicated upon growth and not cost reduction.”