French group digs in to buy compact construction business

FRENCH group Mecalac has bought Terex’s compact construction business in Coventry for an undisclosed sum.

The deal, which will see around 500 staff transfer over, followed a change in strategy for its American parent. 

In June Terex sold the German part of the construction equipment division, which made wheeled loaders and excavators.

It left the future unclear for its West Midlands operation, which produces backhoe loaders, site dumpers and compact compaction rollers under the Fermec and Benford brands. However the agreement with Mecalac, which is expected to be finalised in the first half of next year, ends the uncertainty.

Gregg Horne, general manager of the Coventry business, said it will be “business as usual” despite the change in ownership.

He added: “[Mecalac] embrace our vision of market growth and product innovation for the Coventry products and share the same values in terms of quality and team working.”

Mecalac believes the deal will give the group a complementary range of products and open up more distribution areas.

Henri Marchetta, chief executive of Mecalac, said: “This acquisition follows our growth strategy, based on excellence, on the broadening of our range of equipment for urban construction sites, and on international distribution deployment.”