Truck buyers may one day see the products of Tatra A.S., a truck manufacturer based in the Czech Republic, on North America roads after its acquisition by a Florida company that has ties to global conglomerate Terex Corp.
SDC International of Palm Beach, FL, completed the purchase of Tatra last week. The total cost of the acquisition was $32 million. Tatra, based in the town of Koprivnice, generated some $150 million in revenues in 2000, with after-tax profits of approximately $4 million in calendar year 2000. SDC expects Tatra to generate pre-tax earnings of $13 million in 2001.
SDC, which acquired 91.61% of Tatra from the Czech government, retains a controlling majority of 51% and has agreed to sell the remaining 40.61% of the outstanding Tatra shares to Terex, a strategic shareholder of SDC. The remaining shares of Tatra, approximating 8%, are publicly held. SDC said that Terex is also assisting in the financing of SDC's acquisition and the establishment of working capital credit facilities for Tatra.
SDC and Tatra plan to utilize Terex's extensive global network for Tatra's distribution. Terex has a worldwide network of dealers in over 1,000 locations in more than 60 countries. Terex also has a large presence in several specialty truck market niches in the United States, especially for utility vehicles, as it owns Telect, a U.S. company that makes truck-mounted aerial lift buckets, cranes and other products.
