Konecranes has announced that all material closing conditions have been met for the acquisition of Terex Material Handling & Port Solutions (MHPS) yesterday (January 4, 2017) and the acquisition of MHPS by Konecranes is now complete.
The deal has cost $595 million and €200 million in cash and 19.6 million newly issued class B shares representing a 25% interest in Konecranes.
Konecranes and MHPS, known for their state-of-the-art equipment and services, are building a new technology-focused company that once combined will have more resources for research and development, introduce new products and engineering solutions, and an enhanced service offering.
Konecranes now has three Business Areas: Service, Industrial Equipment and Port Solutions. Port Solutions will be headed by Mika Mahlberg, Executive Vice President, based in Finland.
Read the exclusive Q&A with Tuomas Saastamoinen, SVP, Sales and Marketing, Port Solutions, Konecranes.
Its expanded product portfolio for port customers is the widest and deepest in the industry and now includes Konecranes Gottwald Mobile Harbor Cranes, Konecranes Noell STS and RTG cranes, horizontal transport for container terminals, and Konecranes Liftace Lift Trucks. The company's port service strength has also grown through a greater geographical reach and wider skill-set.
Konecranes and MHPS have many similarities in engineering, knowledge of material handling and as global businesses. Both drive for technology leadership and as a combined entity it will have a global presence with 18,000 employees in over 50 countries.
John L. Garrison, Terex President and CEO, said: “We believe that the Konecranes-MHPS combination represents compelling industrial logic that will deliver significant value to Konecranes customers, team members and shareholders, including Terex.
“The sale of our MHPS business is a major milestone on our journey to become a more focused, high performance enterprise. We are committed to delivering improved profitability and return on capital across Terex as we implement our strategy of focus, simplify, and execute to win.
“Also, we will move forward over the coming weeks with our planned debt reduction, significantly reducing our interest expense and leverage as we enter 2017.”
Automation technology is one of Konecranes' key focus areas, with an offering covering Automated Stacking Cranes (ARMGs and ARTGs), Automated Straddle Carriers, Automated Guided Vehicles (AGVs) and Lift AGVs for automated container handling.
The company's software and process knowledge is now the widest and deepest in the industry, bringing the best out of the customer’s terminal and integrating the container handling fleet, manual or automated, seamlessly in the terminal’s operations.
Konecranes now offers the container handling industry’s widest and deepest range of container handling equipment and automation technology:
Technology is also a strong focus in its lift truck and mobile harbor crane product lines. Konecranes recently introduced eco-efficient, hybrid reach stackers and connectivity that makes its Lift Trucks smarter, giving customers real-time information for improving operations.
It also introduced new mobile harbor crane variants to meet changing customer needs and continues to fit them with the latest three-phase drive technology for higher productivity and easier maintenance.
The final transaction consideration is subject to post-closing adjustments for cash, debt, working capital, MHPS actual 2016 EBITDA and the closing of the sale of the Stahl CraneSystems business.