With Approvals in Hand, Konecranes Plans to Finalize Terex Deal in Early 2017
12/22/2016 - The European Commission has given the green light to a deal in which Finnish crane manufacturer Konecranes plc will sell its hoist and crane components business to an American company. The approval clears the way for Konecranes to finalize the sale of its port solutions and material handling business to U.S.-based Terex Corp.
Earlier this month, Konecranes said it would sell its STAHL CraneSystems business to Columbus McKinnon Corp., which also makes hoists and crane components.
Konecranes said it will receive cash proceeds of between EUR224 million and EUR230 million from the sale, plus offload an estimated EUR74 million in unfunded pension liabilities. And more importantly, the sale satisfies regulatory conditions of the Terex deal.
Konecranes said it now intends to close that deal in early 2017 as Columbus McKinnon expects to close the Stahl CraneSystems agreement sometime between 31 January and 30 April.
"We have long viewed STAHL as an ideal complement to Columbus McKinnon (in Europe, the Middle East and Africa) as well as an excellent expansion of our global product offering. Their strong position with wire rope and electric chain hoists in Europe immediately complements our leadership of handheld hoists in that region, and their broad portfolio of ATEX-certified, explosion-protected products serving the mining, oil and gas, and chemical processing industries significantly extends our global offerings in capability and capacities,” said Columbus McKinnon president and chief executive Timothy T. Tevens in a statement.
Konecranes said it will receive cash proceeds of between EUR224 million and EUR230 million from the sale, plus offload an estimated EUR74 million in unfunded pension liabilities. And more importantly, the sale satisfies regulatory conditions of the Terex deal.
Konecranes said it now intends to close that deal in early 2017 as Columbus McKinnon expects to close the Stahl CraneSystems agreement sometime between 31 January and 30 April.
"We have long viewed STAHL as an ideal complement to Columbus McKinnon (in Europe, the Middle East and Africa) as well as an excellent expansion of our global product offering. Their strong position with wire rope and electric chain hoists in Europe immediately complements our leadership of handheld hoists in that region, and their broad portfolio of ATEX-certified, explosion-protected products serving the mining, oil and gas, and chemical processing industries significantly extends our global offerings in capability and capacities,” said Columbus McKinnon president and chief executive Timothy T. Tevens in a statement.
