Konecranes Plc has just announced that they will be merging with Terex Corporation, following the unanimous approval of both their boards of directors, according to a press release issued by Konecranes.
The new company, which will be called Konecranes Terex Plc, will be the leading global Lifting and Material Handling Solutions Company.
The merger will be bringing together two leading companies in the lifting, materials handling, and equipment servicing solutions that are complementing each other, according to the press release.
Reuters adds that Terex is a company that makes equipment for sectors, which includes mining, construction, and shipping.
Konecranes is a company that is more focused on cranes for factories, shipyards and terminals.
Konecranes Terex will have access to the portfolio of leading brands that both companies have, including in categories such as Industrial Lifting, Port Solutions, Aerial Work Platforms, Materials Processing and Cranes.
The combined companies' portfolio of leading brands will also offer a variety of solutions to its customers worldwide, according to the press release.
Stig Gustavson, Chairman of the Board of Konecranes, said in the press release that the combination of the two companies is a defining step.
"With a focus on Lifting and Material Handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities," he said.
Ron DeFeo, CEO of Terex, added in the press release that the merger brings together two great businesses.
"We have a deep respect for 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," he said.
In the terms of the deal, Terex shareholders will receive 0.80 Konecranes shares for Terex shares they own, according to the press release.
Once the deal is closed, which is expected to be during the first half of 2016, the combined company will be about 60 percent owned by Terex shareholders, and about 40 percent owned by Konecranes shareholders.
Gustavson will be chairman of the Konecranes Terex and DeFeo will serve as its CEO, according to the press release.
