Terex Corp announced Thursday it has increased its all-cash takeover bid for Germany’s Demag Cranes by about 9% to EUR45.50 per share, prompting the target company’s board to recommend the $1.4 billion revised offer to shareholders.

Terex originally proposed to buy Damag for EUR41.75 per share in early May.

The new offer represents a 25% premium to Demag’s EUR36.30 closing share price on April 29, and a 53% premium to the last undisturbed share price of EUR29.65 on October 6, 2010, prior to takeover interest speculation causing the stock to swell.

Demag is a crane and crane component supplier based in Dusseldorf, Germany, and its services division, which conducts repairs and inspections, is expected to help Terex’s efforts to cushion itself from an economic slowdown as earnings from Terex’s mining trucks are more vulnerable to such times.

Demag closed up at EUR45.17, or by nearly 1.8%, in Frankfurt trading on Thursday.

“We are pleased to have reached an agreement with the management of Demag Cranes that provides an excellent basis for the future joint success of Terex and Demag Cranes,” said Terex CEO, Ronald M. DeFeo.

“Our businesses are highly complementary and the combination has compelling industrial logic for all of our collective stakeholders.”

Demag shareholders have until June 30 to accept the offer, which requires a 51% acceptance rate among shareholders to be valid.

Based in Westport, Connecticut, Terex, whose stock on the New York Stock Exchange rose 2.63%, trading at $26.15 per share, manufactures equipment for a variety of industries, including construction, mining, shipping, transportation and energy.

Together with Demag, Terex said it plans to continue growing the company’s global presence.