Konecranes announced on Monday that it is buying the Terex Material Handling and Port Solutions unit in a deal valued at more than 1.12 billion euros in cash and stocks.
Terex is one of the biggest suppliers of industrial cranes and crane components in the world.
Plans to merge the two companies were thwarted by a competing bid from Chinese construction machinery company Zoomlion, as well as regulatory obstacles after merger plans were first announced last August.
President and CEO of Konecranes Panu Routila said that the acquisition would improve the company’s position.
"This acquisition will prove crucial to improving our position as a global partner in services, industrial lifting and port solutions, and at the same time create significant value for our owners," Routila said in a press release issued on Monday.
Konecranes not sole bidder
The acquisition is set to bump Konecranes' turnover to nearly 3.5 billion euros. After the deal goes through in early 2017 the company will have some 19 thousand employees around the world.
Chinese construction machinery company Zoomlion has also showed interest in buying the Terex unit.
Under the terms of the Konecranes acquisition deal, Terex is still able to pull out of the agreement until the end of May, but such a move would force Terex to pay Konecranes nearly 33 million euros in compensation.
