Updated from 12:25 a.m. EST
SOUTH MILWAUKEE, Wis. (
, a maker of mining equipment, signed a definitive agreement to acquire
mining-equipment division for $1.3 billion in cash.
"Customers will reap benefits from this transaction as Bucyrus will be able to offer a broad, complementary product line that is driven by technology, quality, and first-class service," said Tim Sullivan, Bucyrus CEO, in a statement late Sunday. "Through our extended product offering, we will continue to design and produce world-class machines and provide the best after-market support throughout the life of the equipment. We will expand our geographic footprint and diversify our portfolio of products across a broader range of commodities."
Bucyrus said the Terex business has 38 facilities around the world with about 2,150 employees. Bucyrus said it will double its addressable market to about $30 billion from $15 billion and have almost 100 global locations.
The Terex division has about $1 billion in annual sales, according to the
Wall Street Journal
. The business makes mining equipment that is generally smaller than what Bucyrus specializes in.
Under the terms of the agreement, Terex may request to receive $300 million of the purchase price in Bucyrus stock.
Bucyrus said Sunday the acquisition doesn't require shareholder approval. The deal is expected to close during the first quarter of 2010.
Bucryus estimates the deal can yield more than $100 million in annual run-rate operating synergies by 2012.
-- Reported by Joseph Woelfel in New York.
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