Cargotec and Konecranes to Merge Creating a Global Leader in Sustainable Material Flow

Print this Article | Send to Colleague

Cargotec Corporation and Konecranes have announced that their respective boards of directors have signed a combination agreement and a plan to combine the two companies through a merger.Cargotec Corporation and Konecranes have announced that their respective boards of directors have signed a combination agreement and a plan to combine the two companies through a merger.

Transaction Highlights

• The future company will be a customer-focused global leader in sustainable material flow. The future company’s illustrative combined annual sales is approximately EUR 7.0 billion and comparable operating profit approximately EUR 565 million based on fiscal year 2019.
• The future company is well positioned to lead the industry shift towards increased sustainability based on intelligent solutions, by being a lifecycle partner for its customers and prioritizing safety in all its activities.•
• The future company can unlock significant value for its stakeholders by being the lifecycle partner for its customers, solving the sustainability challenge through innovation, positioning itself well to grow in material flow and by creating and combining a team of top global talent. 
• The proposed combination will be implemented as a statutory absorption merger whereby Konecranes will be merged into Cargotec.

It is proposed that the future company’s chairman will be Christoph Vitzthum.

Cargotec 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 utilize 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.”

The proposed combination will create a global leader in sustainable material flow, with numerous valuable customer-facing brands and complementary offerings across its businesses in industries, factories, ports, terminals, road and sea-cargo handling. 

Back to Tissue360 Newsletter