Bucyrus closes $1.3B purchase of Terex mining
Bucyrus International closes $1.3 billion purchase of Terex mining business
-
Companies:
On Friday February 19, 2010, 6:44 pm EST
SOUTH MILWAUKEE, Wis. (AP) -- Bucyrus International Inc. said Friday it completed the purchase of Terex Corp.'s mining-equipment business for $1.3 billion in cash and stock.
Bucyrus paid $1 billion in cash and gave Terex stock valued at $300 million just before the sale in December. Bucyrus said it mended an existing credit agreement to raise $1 billion for the deal.
Wisconsin-based Bucyrus mostly serves the coal-mining business. The Terex equipment unit makes hydraulic excavators, mining trucks and other products used to extract precious metals.
Bucyrus said the acquisition will round out its lineup of mining equipment and double its market of potential customers.
Terex officials said the sale of the mining-equipment unit marked a shift toward becoming a machinery and industrial-products company. They said money from the deal would let them invest in Terex's remaining businesses or pursue acquisitions.
Bucyrus shares fell 13 cents to $62.51 after hours.