Expansion and Contraction

Today, Terex is the world’s third largest construction equipment manufacturer and the company continues to evolve its small equipment market strategy. In late November, Terex Construction introduced a dedicated compact equipment line, distributed throughout North America incorporating the ASV brand which the company acquired early last year.

The compact equipment line includes both Terex-branded compact track loaders, featuring the ASV-patented Posi-Track undercarriage technology, and a broad portfolio of offerings from Terex, including compact excavators, compact wheel loaders, site dumpers, tractor loader backhoes, light towers, telehandlers, power buggies and tandem asphalt rollers. 2008 marked the 25th year of ASV designing and manufacturing its advanced compact track loaders — now that brand name will be reworked into the Terex umbrella in the upcoming year.

“By combining Terex Construction’s broad lineup of compact products and services with our innovative compact track loaders featuring our patented Posi-Track undercarriage system, we are able to provide an exceptional ownership experience,” says Del Carver, director of sales and marketing for the compact business of Terex Construction Americas.

With more than 45 unique product models, the Terex compact equipment line offers one of the widest ranges of compact equipment available from a single manufacturer, giving contractors numerous options for their equipment investment. In addition, Terex parts and service and Terex Financial Services, are available to customers who purchase Terex equipment.

Through Dec. 31, 2009, dealers that distribute ASV products only, will continue to offer these machines under the ASV brand. Effective Jan. 1, 2009, all current ASV products will also be branded “Terex” and will join the North American Terex compact equipment line. In the interim, customer events and media coverage that features both Terex and ASV-branded products will be promoted as Terex ASV.

From selecting the right machine for the application to determining the total cost of ownership, Terex compact equipment dealers will focus on helping contractors maximize their investment.

“We are committed to giving compact equipment owners more equipment choices, better product features and greater reliability, as well as the best service before and after the purchase,” Carver explains.

“Contractors are demanding more for their money from both their dealer and their manufacturer, and we plan to give them what they want. With the power of the Terex compact equipment line, we are confident that we can do just that.”

Equipment Consolidation

Terex is a monster company, assembled from many small parts. Since 1995, Terex has acquired more than 20 different companies, making it the world’s third largest construction equipment manufacturer today, behind only Caterpillar and Komatsu. The multi-national construction business markets more than 50 unique brands, selling equipment large and small into construction, utility, quarrying, recycling, mining, shipping, transportation, rental and refining markets. In mid-January 2008, Terex Corp. announced that it had reached another definitive agreement to acquire another company. This time it was a compact equipment legend — ASV Inc. — one of the pioneers of compact track loaders (a totally new market for Terex). Headquartered in Grand Rapids, Minn., ASV is a manufacturer of compact rubber track loaders and related accessories, undercarriages and traction products. The transaction was valued at approximately $488 million, or $18 per fully diluted share of ASV common stock. ASV also owns Loegering (the maker of attachments and track products for skid steers), giving Terex great traction solutions in the compact tool carrier marketplace.