The £100m deal for Terex Equipment will see 500 staff transfer to Volvo along with the main Scottish factory, the US distribution arm and a 25% stake in a firm producing rigid trucks under the Terex brand in China.

Under the deal, which is expected to be finalised during the second quarter of 2014, following approval from relevant authorities Volvo will continue to market rigid and articulated dump trucks under the Terex brand for a transitional period.

The Terex Equipment deal includes five models of rigid dump trucks with payloads of 32 to 91 tons and three models of articulated dump trucks added to the Volvo portfolio, with payloads ranging from 25 to 38 tons.

Volvo CE’s president, Pat Olney said: “This is a strategic acquisition that offers Volvo CE considerable scope for growth.

“The addition of a well-respected range of rigid haulers extends the earthmoving options for customers involved in light mining applications.”

“We believe that the Motherwell facility and its global team members, as well as the current distribution partners, are valuable to the success of the business in the future.”

In 2012, Terex Equipment boasted £225m sales generating an operating income of £20m.

These machines support Volvo CE’s already established position in the articulated hauler segment, offer an extensive field population and opportunities for considerable growth in emerging economies.

Ron DeFeo, Terex chairman and chief executive officer, said: “The truck business has been an important part of our company for more than three decades.

“However, trucks no longer fit within our changing portfolio of lifting and material handling businesses.”