Konecranes and Cargotec to merge
Cargotec and Konecranes have announced that they have signed an agreement and a merger plan to combine the two companies.
It is anticipated that the merged companies will be well positioned to lead the industry shift towards increased sustainability based on intelligent solutions, by being a lifecycle partner for its customers and prioritising safety in all its activities.
The companies say that the merged entity will be “a customer-focused global leader in sustainable material flow” with a combined annual sales of approximately €7 billion ($8.25 billion) and an operating profit of approximately €565 million ($666 million) based on fiscal year 2019.
The proposed combination will be implemented as a statutory absorption merger in which Konecranes will be merged into Cargotec. The combination is subject to, among other items, approval by a majority of two-thirds of votes cast and shares represented at the respective EGMs of Cargotec and Konecranes, and the obtaining of merger control approvals. Completion is expected in the fourth quarter of 2021, subject to all conditions for completion being fulfilled.
The board of directors of the future company is proposed to include an equal number of board members from both companies, with Konecranes chairman Christoph Vitzthum tipped as chairman of the merged entity.
Cargotec’s chairman, Ilkka Herlin, said, “Sustainability has been high on Cargotec’s agenda since its foundation and this merger enables us to become a global leader in sustainable material flow. Our customers are increasingly seeking green solutions and together we will have better opportunities to solve customers’ challenges. I believe this is an excellent value creation opportunity both from a business perspective and also shaping global trade for the better. The Future Company will be well-positioned to utilise these opportunities and create strong value for its customers, employees and shareholders.“
Konecranes chairman, Christoph Vitzthum, said, ”The combination of Konecranes and Cargotec, with their iconic technology brands, innovation capabilities, talented people and focus on sustainability, will create a company that is clearly greater than the sum of its parts, delivering robust synergies and creating a unique platform for shareholder value creation. Customers will benefit from the companies’ combined technologies and even better service capabilities. This is a pivotal moment for Finnish industry and the material handling industry as a whole, and we are fully ready and committed to seize this historic opportunity.”
Cargotec CEO, Mika Vehviläinen, said, “The Future Company will have enhanced opportunities to improve the efficiency in customers’ operations and shape the whole industry forward to a more sustainable and intelligent one. Together we are stronger and our combined R&D resources will enable us to accelerate innovation in automation, robotics, electrification and digitalisation. Both companies have broad service networks and together we can offer our customers superior value through our world-class service platform and intelligent technology.”
Konecranes CEO, Rob Smith, said, “The Future Company will be a global leader with its unparalleled product range, global service network, industry-leading intelligent technology and an unwavering commitment to safety. Supporting this will be top talent from both Konecranes and Cargotec and a passion to lead in sustainable material flow to deliver the very best for our customers. The timing is right, and the logic and fit of this combination are compelling. Konecranes looks forward to starting this journey together with Cargotec.”