In a move to add complementary services to its business and broaden its geographic reach, Bucyrus International Inc. announced its purchase of Terex Corp’s mining equipment division for $1.3 billion in cash. The acquisition should double its addressable market to over $30 billion from $15 billion.
Terex said the acquisition quickens its plan to convert to a machinery and industrial products company from a construction and mining equipment business.
The acquisition will increase Bucyrus' staff to about 10,000 employees in nearly 100 worldwide locations. In addition, it will provide more than $100 million in annual run-rate savings for the company by 2012. Bucyrus said much of the savings will come from consolidating manufacturing plants, as well as through combining management functions and lowering purchasing expenses.
Both companies' boards have approved the deal, which is expected to close in the first quarter.
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