Terex, CMI come together

News July 06, 2001
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Terex Corp

Terex Corp., Westport, Conn., has agreed to buy Oklahoma-based CMI Corp. for $149.5 million in stock and debt.


Pending stockholder approval and anti-monopoly clearance, Terex will exchange 0.16 share for each share of CMI and issue a maximum of 3.5 million shares. The offer values CMI at $3.42 a share, or $74.2 million.


"We will be a division of Terex and will continue designing and marketing product," Jim Rodriquez, vice president of corporate communications at CMI, told ROADS&BRIDGES. "The positive thing about this is that it gives us stronger buying power because now we're part of a multi-billion-dollar corporation instead of a $200 million one. We'll also have easier access to capital markets and easier access to worldwide distribution."


Terex stepped into the asphalt paving market by acquiring Cedarapids two years ago, but the CMI acquisition is considered by many a more serious move. CMI is No. 2 in the hot-mix asphalt plant business, and also remains competitive in the milling machines and stabilizers, concrete plant and concrete paver arenas.


"Terex has entered the paving business now in a very significant way," said Rodriquez.


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