Konecranes has completed their acquisition of Terex Material Handling & Port Solutions business (MHPS) 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 should help Konecranes to position themselves as a focused global leader in the industrial lifting and port solutions market. Konecranes says they are building a new technology-focused company. As a combined company they will have more resources for R&D, introduce new products and engineering solutions, and further enhance their service offering.
“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,” said John L. Garrison, Terex President and CEO. “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.”
Panu Routila, President and CEO of Konecranes, said: “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.”