Terex, Finland's Konecranes To Combine In All-Stock Merger - Quick Facts

(RTTNews) - Terex Corp. (TEX) and Finland- based Konecranes Plc jointly announced Tuesday that their respective Boards of Directors have unanimously approved a definitive business combination agreement and the resulting all-stock merger of equals.

The transaction is expected to be accretive to both companies' shareholders in first full year.

Both companies will combine to create a single company with estimated pro forma 2014 revenues and EBITDA of $10 billion and $845 million, respectively.

The transaction is subject to approval by both companies' shareholders, regulatory approvals and customary closing conditions. Closing is expected to occur during the first half of 2016.

Upon completion of the transaction, Terex shareholders will own approximately 60% of the combined company and Konecranes shareholders will own approximately 40%. The new company will be named Konecranes Terex Plc and will be incorporated in Finland.

The company said the deal would result in a stronger more competitive global lifting and material handling company.

The companies expect annual after-tax synergies of at least $119 million from the deal.

Further, the new company plans to authorize a $1.5 billion share repurchase and initial annual dividend of approximately $1.15 per share.

Upon close of the transaction, Konecranes Chairman and the Terex CEO will become, respectively, the Chairman and the CEO of the combined company.

Konecranes Terex Plc is expected to have approximately 32,000 employees worldwide. The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.