Konecranes announces purchase of MHE-Demag’s complete ownership
By Akshay Kedari  Date: 2019-12-07

Konecranes announces purchase of MHE-Demag’s complete ownership
  • Konecranes will acquire 50% stakes of MHE-Demag from JV partner Jebsen & Jessen.
     
  • This move would strengthen Konecranes’ presence in the fast-growing Southeast Asian market.
     
  • The transaction is expected to be finalized in January 2020.

Konecranes, a Finnish company with expertise in manufacturing and service of cranes and lifting equipment, has reportedly inked a deal to acquire 50% stakes in MHE-Demag held by JV partner Jebsen & Jessen.

Sources cite that the deal would be valued around EUR 147 million and would help Konecranes strengthen its market position in the fast-growing Southeast Asian market. The acquisition would also generate more opportunities for service sales and simplify the distribution channel for components and cranes.  

With this move, Konecranes has fully consolidated MHE-Demag. According to the company, the deal would add around EUR 150-180 million in yearly sales and about EUR 25-30 million of annual EBITA to the group by the year 2022, comprising targeted synergies.

As per a statement, Teo Ottola, Interim CEO and CFO, Konecranes, said that their firm, following this deal, would take proactive steps for furthering its growth. The acquisition signals their vision to achieve profitable growth and increase geographical reach in strategically valuable markets. The deal would also bring balance to Konecrane’s regional sales structure.

For the record, Konecranes cites MHE-Demag as an associated firm. The net result in the Group attributable to MHE-Demag was around EUR 5 million in 2018.

As for Jebsen & Jessen, it would receive the estimated EUR 147 million fund in cash and deferred payments following the deal’s closure. The transaction is expected to be completed by Jan 2020 and may be finalized without the need of regulatory approval. Meanwhile, MHE-Demag many have a minor net cash position while closing.

Source Credit - https://www.konecranes.com/press/releases/2019/konecranes-to-strengthen-its-market-position-in-southeast-asia-by-buying-full-ownership-of-mhe-demag

About Author

Akshay Kedari    

Akshay Kedari

A qualified computer engineering graduate, Akshay Kedari takes pride in having his way with words. Following his passion for content creation, he writes insightful pieces on aeresearch.net and a few other portals. Also endorsed with a short-term experience in web deve...

Read More

More News By Akshay Kedari

Fibonacci Brands acquires Darwin from Harvest Health & Recreation
Fibonacci Brands acquires Darwin from Harvest Health & Recreation
By Akshay Kedari

Fibonacci Brands has recently announced the acquisition of Darwin from Harvest Health & Recreation (HARV.CN) as its foundation brand. Fibonacci is a leading player in the international cannabis industry. According to James George, founder of Fib...

GVN adds EVIT Center and Chumakov as its new Centers of Excellence
GVN adds EVIT Center and Chumakov as its new Centers of Excellence
By Akshay Kedari

The Global Virus Network (GVN), an international coalition of medical virologists, has recently announced the addition of Australian and Russian researchers. GVN is adding the Center for EVIT (Emerging Viruses, Inflammation & Therapeutics) of th...

Wind Point Partners takes over RTIC to expand business portfolio
Wind Point Partners takes over RTIC to expand business portfolio
By Akshay Kedari

American private equity firm, Wind Point Partners has recently signed an acquisition deal with the one of the biggest direct-to-consumer (D2C) eCommerce providers of drinkware, RTIC. Reportedly, RTIC is Wind Point’s third acquisition of a famil...

Novartis reveals positive data from Phase III ORION trials of inclisiran
Novartis reveals positive data from Phase III ORION trials of inclisiran
By Akshay Kedari

Swiss multinational pharmaceutical firm, Novartis has recently announced results from its Phase III ORION-10 and -11 studies that focus on assessing the individual responses of patients on lowering low-density lipoprotein cholesterol (LDL-C) with inc...

Medtronic to acquire Companion Medical to expand diabetes business
Medtronic to acquire Companion Medical to expand diabetes business
By Akshay Kedari

Medtronic plc, the global leader in medical technologies, has reportedly announced that it is planning to acquire insulin pen manufacturer Companion Medical. The acquisition gives Medtronic access to Companion Medical’s ‘InPen’, wh...