Terex Corp., Westport, Conn., on Dec. 20 agreed to sell its mining equipment business to South Milwaukee, Wis.-based Bucyrus International Inc. for $1.3 billion in cash. Them firm plans to use some of the proceeds to buy companies “beaten down by the recession,” says Chairman and CEO Ron DeFeo. If the deal closes by the end of next quarter as planned, Bucyrus would provide a wider global footprint in mining, which Terex lacks. Terex would have had to invest $150 million to $200 million “in order to take this business to the next level,” says DeFeo. The move positions Terex
The market is generally healthy and steadily growing, and margins are up for large specialty contractors. Further, advances in design tools and owner demand for collaboration are giving subcontractors a seat at the table early on in projects.