Terex Corporation said it has completed the sale of its material handling and port solutions business (MHPS) to Finnish group Konecranes for $595 million and €200 million ($222 million) in cash and 19.6 million newly issued class B shares representing a 25 per cent interest in Konecranes.

A key manufacturer of lifting and material processing products and services, Terex delivers lifecycle solutions to a broad range of industries, including the construction, infrastructure, manufacturing, shipping, transportation, refining, energy, utility, quarrying and mining industries.

“We believe that the Konecranes-MHPS combination represents compelling industrial logic that will deliver significant value to Konecranes customers, team members and shareholders, including Terex,”  remarked John L. Garrison, Terex president and chief executive officer.

Garrison dubbed the sale of the MHPS business as a major milestone in the company's journey to become a more focused, high performance enterprise.

"We are committed to delivering improved profitability and return on capital across Terex as we implement our strategy of focus, simplify, and execute to win. Also, we will move forward over the coming weeks with our planned debt reduction, significantly reducing our interest expense and leverage as we enter 2017," he added.

The final transaction is subject to post-closing adjustments for cash, debt, working capital, MHPS actual 2016 Ebitda and the closing of the sale of the Stahl CraneSystems business.-TradeArabia News Service