Konecranes and Terex merge
Companies reported combined revenues of $10 billion in 2014.
Konecranes and Terex Corporation have announced a definitive agreement to combine their businesses in a merger of equals.
The combined company, to be called Konecranes Terex Plc, will be a leading global lifting and material handling solutions company with estimated combined 2014 revenues of €7.5/$10.0 billion and EBITDA of €636/$845 million. The combined company will maintain headquarters in Hyvinkää, Finland as well as Westport, Conn., USA. Following closing of the transaction, the combined entity is expected to have approximately 32,000 employees worldwide.
The combination will bring together complementary leaders in lifting, materials handling, and equipment servicing solutions. Konecranes Terex will be parent to a family of leading brands with global leadership positions in the industrial lifting, port solutions, aerial work platforms, materials processing and cranes categories. The merger is intended to strengthen global scale, particularly in the low-cost emerging market, and create operational and financial synergies.
Stig Gustavson, chairman of the board of Konecranes, said: “The combination of Konecranes and Terex is a defining step in the history of both companies. With a focus on lifting and material handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities. There is a common culture between the two organizations, with both companies having long histories of designing competitive and innovative solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future.”
Terex CEO, Ron DeFeo, added: “This merger brings together two great businesses and through synergies provides another lever that is within our control to deliver value-creation to both the shareholders of Terex and Konecranes. We have a deep respect for Konecranes and look forward to joining forces with them to build a stronger and more diverse company that will be in an excellent position to succeed in a dynamic and highly competitive global industry.”
Konecranes’ current Chairman of the Board will become Konecranes Terex’ Chairman and the Terex CEO will become Konecranes Terex’ CEO. Upon closing of the transaction, Terex shareholders will own approximately 60% and Konecranes shareholders will own approximately 40% of the combined company. The combined company is planned to be listed on Nasdaq Helsinki and New York Stock Exchange.
