Konecranes Plc has completed the acquisition of Terex Corp.’s Terex Material Handling & Port Solutions business (MHPS business) for US$595 million and €200 million in cash and 19.6 million newly issued class B shares representing a 25% interest in Konecranes.
The acquisition of MHPS is expected to improve Konecranes’ position as a focused global leader in the industrial lifting and port solutions market. Konecranes has reported it will achieve substantial growth opportunities in the service business as well as critical scale for further technological development.
Panu Routila, President and CEO of Konecranes, added: “We are extremely proud to combine forces with MHPS. We want to provide a home for Demag and Port Solutions, from which these businesses can grow and become stronger as part of our joint organization. The MHPS Acquisition makes it possible for us to realise a long list of synergies. We will be one technology company, ready to create the next generation of lifting.”
Konecranes reported that it is well prepared to deliver expected synergies based on the extensive integration planning work carried out jointly with Terex over recent months. Of the total of €140 million p.a. synergies targeted within three years, €35 million is expected to be implemented within 12 months from 1 January 2017, from which date the MHPS Acquisition is deemed effective from a financial point of view. Overall, synergies will come from procurement, operations and SG&A.
“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”, commented John L. Garrison, Terex President and CEO.
Garrison continued: “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.”
Read the article online at: https://www.drybulkmagazine.com/material-handling/05012017/terex-material-handling-and-port-solutions-acquired-by-konecranes/