On January 27, Zoomlion Heavy Industry Science & Technology Co. Ltd., headquartered in Changsha, confirmed publicly that it had discussed with Terex Corporation, a giant in the construction machinery industry, about a potential transaction in the past few months, and submitted to its Board a non-binding offer to acquire all the issued shares of Terex. Discussion on this transaction is ongoing, and Zoomlion will continue to actively promote it.

According to the announcement of Zoomlion, this transaction will provide a golden opportunity for the company to achieve strategic transformation, extension and upgrading of its industrial chain and the international collaboration of its production capacity and manufacturing cost. More importantly, it will help the company accelerate its globalization and make more achievements.

Headquartered in the United States, Terex was listed on the New York Stock Exchange in 1991. As the second largest construction machinery manufacturer only after Caterpillar in America, its core businesses cover the aerial work platform, construction cranes, construction machinery, industrial cranes and port machinery and material handling machinery. Terex leads the world in a number of business segments.

Zoomlion Chairman Zhan Chunxin has repeatedly said that to become true world-class companies, Chinese enterprises must integrate into the global industrial ecology and allocate resources worldwide.

If this transaction can be completed, Zoomlion will achieve significant increase in revenue, profit and asset. In 2014, Terex's sales revenue reached US$7.3 billion (about 44.7 billion Yuan), ranking fifth in the global construction machinery industry, and that of Zoomlion stood at 25.9 billion Yuan. Thus, the total sales revenue of the two added up to over 70 billion Yuan.

The public information shows that 85 percent of Zoomlion's businesses were in China and 72 percent of Terex's businesses in Western Europe and North America in 2014. If the transaction can be completed, Zoomlion's businesses will cover the whole global market, making it a true world-class company. Meanwhile, its industry chain will be greatly enriched and extend to three businesses leading the world-aerial work platform, industrial cranes and port machinery and material handling machinery. Thus, Zoomlion's profitability and anti-risk capacity will be significantly improved.


As we all know, since 2012, China's construction machinery industry has entered the period of in-depth adjustment after the 'golden two decades'. The advantaged businesses in the construction machinery industry of China have created a win-win situation through international cooperation in various forms. Terex has been deep-rooted in the major markets worldwide for many years, boasting sound industrial bases and market channels. It is expected that after the acquisition of Terex by Zoomlion, the two sides can form great international collaboration in terms of production capacity, supply chain and channel.

This transaction will be the first large-scale overseas acquisition in key relevant industry after the promulgation of the Opinions on Promoting Cooperation of International Production Capacity and Equipment Manufacture by the Chinese State Council. It will also be a major initiative in Zoomlion's internationalization strategy.

So far, Zoomlion has gradually implemented its strategic transformation. Through combination between industry and finance, the financial service has begun to play an important role in the development of three concrete businesses-construction machinery, agricultural machinery and environment industry.

Public information reveals that Zoomlion has sufficient cash and smooth financing channel, able to fully ensure the completion of the transaction. It is learned that Zoomlion's current asset-liability ratio is about 58 percent, a low level in the industry.

The announcement of Zoomlion said this project has gained the confirmation of relevant state department and the financial support confirmation of relevant financial institution, and the company will continue to actively promote the transaction.

Zoomlion Heavy Industry Science and Technology Co. Ltd. issued this content on 28 January 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 04 February 2016 15:21:16 UTC

Original Document: http://en.zoomlion.com/news/10142_for_press_release_text.htm