Mining Equipment Rentals

NEW YORK, Aug 11, 2008 (Reuters) - Terex Corp (TEX.N:), a maker of construction, transport and mining equipment, will buy the port equipment businesses of privately-owned Fantuzzi Industries for about 215 million euros ($323 million) to expand its cranes business, Terex said on Monday.

The port equipment businesses, with factories in Italy, Germany and China, had 2007 sales of 447 euros ($671 million), Terex said. It expects the deal to close in the fourth quarter and to boost its earnings by the end of 2009.

"This acquisition provides us with an important growth opportunity in the intermodal transportation area of infrastructure," Terex Chief Executive Ronald DeFeo said in a statement.

Terex may have beaten out Finnish company Konecranes (KCR1V.HE:) for the port equipment businesses, said Sterne Agee analyst Lawrence De Maria. He called the purchase a positive development for Terex and a shrewd deal.

"The fundamentals for ports and shipping (are) expected to steadily expand for the next 15-20 years due to several major trends, including 'containerization' emergence as the primary means of globalized trading," De Maria said in a note to investors.

Terex shares gained $1.18, or 2.5 percent, to $48.40 in midday trade on the New York Stock Exchange. Konecranes shares were down slightly at 24.93 euros in Helsinki trading. (Reporting by Nick Zieminski; editing by John Wallace)

Source: Reuters