February 12, 2013
On Monday, Terex (NYSE: TEX ) announced that it has entered into an agreement to sell its road-building operations in Brazil, as well as certain other mobile road-building product lines in the U.S., to French construction conglomerate Fayat Group. Specific product lines being divested include asphalt plants and pavers manufactured in Porto Allegre, Brazil, and also related lines in Oklahoma City.
Financial terms of the divestitures were not disclosed in the press release, but Terex did say that it expects the sales to close during Q1 2013, and to result in a $15 million charge to earnings, which Terex will take in Q4 2012.
Putting the divestiture in a broader context, Terex Chairman and Chief Executive Officer Ron DeFeo was quoted in the press release as saying, "The decision to exit most of our roadbuilding product lines is another step in the repositioning of Terex. We continue to focus on improving our Construction segment performance as well as the Company's overall returns on invested capital, and this transaction is part of that process."