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10 • ROCK products • September 2015 www.rockproducts.com I N D U S T RY N E W S IN THE KNOW Terex Corp. and Konecranes Plc joint- ly announced that their respective boards of directors have unanimously approved a definitive business combi- nation agreement and the resulting all- stock merger of equals. Konecranes and Terex will combine to create a single company with estimat- ed pro forma 2014 revenues and EBIT- DA of $10.0 billion and $845 million, respectively. Upon completion of the transaction, Terex shareholders will own approximately 60 percent of the combined company and Konecranes shareholders will own approximately 40 percent. The new company will be named Konecranes Terex Plc and will be incorporated in Finland. The combination will bring together two complementary leaders in cranes, materials handling, and equipment servicing solutions to create a pre- mier industrial company. The com- bined company is expected to create enhanced shareholder value in a vari- ety of ways, among them: • Increased global scale with enhanced competitiveness to rival low-cost emerging market players. • Broader presence in key sectors with greater opportunity to capitalize on growth trends in the port and indus- trial sectors as well as service. • More robust portfolio of comple- mentary products and customer solutions. • Critical scale for further technology development and enhanced R&D.; • Significant operational and corpo- rate synergies and complimentary geographic profiles. • Strong balance sheet and cash flow generation to support growth and return of capital to shareholders. Terex CEO Ron DeFeo commented "This merger brings together two great businesses and through synergies provides another lever that is within our control to deliver value-creation to both the shareholders of Terex and Konecranes. We have a deep respect for Konecranes and look forward to join- ing 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." "The combination of Konecranes and Terex is a defining step in the history of both companies," added Stig Gus- tavson, chairman of Konecranes. "With a focus on Lifting and Material Han- dling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenue and mar- gins through several strategic advan- tages, including significant cross-sell- ing opportunities. There is a common culture between the two organizations, with both companies having long his- tories of designing competitive and innovative solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future." Upon close of the transaction, the com- bined company will appoint nine direc- tors comprised of five Terex directors and four Konecranes directors. The Konecranes chairman and the Ter- ex CEO will become, respectively, the chairman and the CEO of the combined company at closing. The combined company will maintain headquarters in Westport, Conn., and Hyvinkää, Finland. Following comple- tion of the transaction, Konecranes Ter- ex Plc is expected to have approximate- ly 32,000 employees worldwide. allows us to acquire the market-leading supplier of agricultural gypsum serv- ing California's Central Valley and sur- rounding areas, but also broadens our customer footprint, product portfolio and end-market diversification. AWC has had a long and successful history since its founding by Art Wilson in the 1950s, and we look forward to serving as great stewards of the business going forward." "We are pleased to support ACG Materi- als in its acquisition of Art Wilson Co.," said Keval Patel, a managing director of ACG parent H.I.G. Capital. "The acqui- sition further bolsters ACG's business on the West Coast and also aligns with our strategy of diversifying ACG's geo- graphic reach and end market expo- sure into value-added downstream processed minerals. We expect the use of anhydrite and gypsum to continue to grow as farmers look to capitalize on the excellent crop enhancing and moisture retention attributes of these products." ACG was founded in 1955 and operat- ed under the name Harrison Gypsum until May 2015. AWC is the fifth add- on acquisition that ACG has completed since H.I.G. acquired ACG at the end of 2012 and marks the second acquisi- tion this year. In February 2015, ACG acquired JA Jack & Sons, a Seattle-based producer and processor of limestone products. Terex to Merge with Konecranes FAST FACT The new company will be named Kone- cranes Terex Plc. FAST FACT The acquisition of Art Wilson Co. fur- ther bolsters ACG's business on the West Coast.