Tadano Ltd. has completed its acquisition of the Demag Mobile Cranes business. The transaction brings together two of the top names in the lifting equipment industry – each well known for safety, quality, innovation, and performance.
On February 23, 2019 Tadano Ltd. announced the approval by its board of directors to enter into an agreement with Terex Corporation (Hereafter “Terex”), headquartered in the state of Connecticut in the United States, for a stock and asset acquisition of the Demag Mobile Crane Business (Hereafter “Demag”), headquartered in Germany. Thereafter, regulatory approvals were obtained in each related country, and closing of the acquisition was completed on July 31st .
The total agreement price is approximately 215 million dollars (approximately 23.6 billion yen). The total agreement price is equivalent to the enterprise value and is subject to adjustment at closing. All yendenominated values calculated at the rate of 110 yen to the dollar. Tadano plans to use a mixture of its own cash reserves and borrowed funds to secure the total cash to be used in the transaction payment.
Reasons for the Stock and Asset Purchase
The Tadano Group’s business domain is lifting equipment―mobile machinery used for lifting loads and carrying out aerial work. We aim to become No. 1 worldwide in the lifting equipment industry as we engage in further global growth. The Demag Mobile Cranes business, which is currently owned by Terex, has over 100 years of history and experience in the design and manufacture of world-class, large-capacity all terrain cranes and crawler cranes. Through the acquisition of Demag, Tadano further seeks to meet customer needs with the addition of lattice-boom crawler cranes to our product lineup, as well as the enhancement of our line of all terrain cranes. We aim for a greatly expanded global presence as we strive toward our goal of becoming No. 1 worldwide in the lifting equipment industry.
In August 2019, Tadano will celebrate the 100th anniversary of its founding. Along with our vision of “Pursuing further excellence for the world and the future,” we hold true to the tenets of our founders by delivering products that contribute to the greater world.