02.04.2009

Terex Fantuzzi deal back on

Terex has announced that it is resuscitating its plan to acquire the Fantuzzi port equipment business. Click here to see Terex terminates Fantuzzi deal

The company says that it has reached a non-binding agreement to acquire the business for €175 million - €40 million down on the original deal it struck last August, which was then terminated in January. Term sheets have been agreed with Fantuzzi’s bank creditors for long-term financing which will provide almost all the funds needed to complete the deal, according to a statement from Fantuzzi. As all approvals have already been obtained the two parties are looking to complete within the next few weeks.

Fantuzzi problems began after it was unable to make a €55 million bond payment, the last instalment in a €125 million bond.

Rick Nichols, president of Terex Cranes said: “Immediately after closing we will begin to work with Fantuzzi’s team members, suppliers, distributors, customers and other stakeholders to aggressively restructure and position these businesses for the eventual recovery in their markets.”

Phil Widman, chief financial officer, added: “Upon completion of this transaction, our debt levels will increase modestly due to the financing provided from the existing financial creditors. With the long term maturities and expected company-wide cash flow generation, we believe liquidity should be sufficient to get us through the economic downturn.”

Fantuzzi chairman Luciano Fantuzzi said: "The closing of this transaction will permit the successful completion of the restructuring of the group."