Bucyrus Completes Acquisition of Terex Mining Business
Bucyrus International, Inc. (NASDAQ: BUCY), a world leader in the design and manufacture of mining equipment, announced today that it has completed its acquisition of the mining equipment business of Terex Corporation. The transaction will position Bucyrus as the premier supplier of mining equipment, serving its customers from nearly 100 locations around the world with a team approaching 10,000 people.
“We are pleased to announce this important milestone for Bucyrus as we begin our 130th year in business. This transaction is a unique opportunity to build an even stronger company for our customers, employees, and stockholders,” said Tim Sullivan, President and Chief Executive Officer of Bucyrus.
In connection with the acquisition, Bucyrus paid US$1.0 billion in cash and issued to Terex 5,809,731 shares of Bucyrus common stock. The number of shares was determined by dividing US$300 million by the trade weighted average share price of Bucyrus for a ten day period prior to signing the agreement on December 20, 2009. Bucyrus amended its existing credit agreement and raised additional term debt of $1.0 billion to fund the cash payment.
Bucyrus now offers a comprehensive product line of mining equipment driven by technology, quality, and first class service. Bucyrus designs and manufacturers world class machines and provides unparalleled aftermarket support throughout the life of its equipment. With the completion of this transaction, Bucyrus has extended the organization’s geographic footprint, diversified its product portfolio and positioned the company as a more globally competitive organization. Bucyrus doubles its addressable market from roughly US$15 billion to over US$30 billion.
“This transaction is a natural extension of our current operations; we’re one company with a proud history powered by hard-working, loyal employees who are passionate about mining,” Sullivan said. “We’ve reinforced our long-held values of safety, customer focus and reliability at work.”
Bucyrus’ portfolio now consists of walking draglines, electric rope shovels, the world’s largest hydraulic excavators, off-the-highway haul trucks, highwall miners, underground longwall systems, room and pillar mining systems and transport machinery and a full line of drills and belt systems for all mining applications. Bucyrus’ unmatched suite of surface and underground mining equipment is paired with its superior parts, consumable products and aftermarket support throughout the world.
About Bucyrus International, Inc.
Bucyrus is a world leader in the design and manufacture of high productivity mining equipment for the surface and underground mining industries. Bucyrus’ surface mining equipment is used for mining coal, copper, iron ore, oil sands and other minerals. Bucyrus’ underground mining equipment is used primarily for mining coal and also used in mining minerals such as potash and trona. In addition to machine manufacturing, Bucyrus manufactures high quality OE parts and provides world-class support services for their machines. Bucyrus’ corporate headquarters is located in South Milwaukee, Wisconsin, USA.