Mining Magazine > Panorama > Bucyrus completes Terex acquisition

Panorama

Bucyrus International has announced the completion of its acquisition of the mining equipment business of Terex Corp. The transaction will position Bucyrus as a 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 CEO 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.

With the completion of this transaction, Bucyrus has extended the its geographic footprint, diversified its product portfolio and positioned the company as a more globally competitive organisation. Bucyrus doubles its addressable market from roughly US$15 billion to over US$30 billion.

Bucyrus’ portfolio now consists of walking draglines, electric rope shovels, 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.