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Konecranes Finalizes Terex Deal, Targets EUR140 Million in Synergies
01/04/2017 - Konecranes has closed on its deal to acquire the material handling and port solutions business of U.S.-based Terex Corp., the company has announced.
“We are extremely proud to combine forces with (the material handling and ports solutions business). 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,” said Konecranes president and chief executive Panu Routila in a statement.
“The MHPS acquisition makes it possible for us to realize a long list of synergies. We will be one technology company, ready to create the next generation of lifting,” he said.
Konecranes is targeting EUR140 million in synergies, which it hopes to achieve in three years. Of that, it plans to realize EUR 35 million over the next 12 months, it said.
Konecranes said the synergies will be derived from procurement; operation; and selling, general and administrative expenses. Additional synergies are also expected to arise from new opportunities in global service operations, leading to earnings growth.
“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 Terex president and chief executive John L. Garrison.
Konecranes is buying the business for US$595 million in cash and stock, and Terex will now hold a 25% interest in Konecranes.
“The MHPS acquisition makes it possible for us to realize a long list of synergies. We will be one technology company, ready to create the next generation of lifting,” he said.
Konecranes is targeting EUR140 million in synergies, which it hopes to achieve in three years. Of that, it plans to realize EUR 35 million over the next 12 months, it said.
Konecranes said the synergies will be derived from procurement; operation; and selling, general and administrative expenses. Additional synergies are also expected to arise from new opportunities in global service operations, leading to earnings growth.
“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 Terex president and chief executive John L. Garrison.
Konecranes is buying the business for US$595 million in cash and stock, and Terex will now hold a 25% interest in Konecranes.
