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     aeresearch.net

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

Google to offer cyber insurance to cloud users with Munich Re, Allianz

Google to offer cyber insurance to cloud users with Munich Re, Allianz

By Akshay Kedari

Google, Allianz, and Munich Re have teamed up to launch a Risk Protection Program. This program intends to reduce cloud security risks and provide cyber insurance designed for Google Cloud users. Google Cloud, Munich Re, Allianz Global Corporat...

Space startup GITAI secures USD 17.1 million in Series B funding round

Space startup GITAI secures USD 17.1 million in Series B funding round

By Akshay Kedari

Japanese space technology startup GITAI has reportedly secured UDS 17.1 million through a Series B funding round which was led by SPARX Innovation from Future Co. Ltd. The round also saw participation from DCL Venture Growth Fund, EP-GB (Epson’...

Williams Racing and Acronis extend their cyber protection partnership

Williams Racing and Acronis extend their cyber protection partnership

By Akshay Kedari

Williams Racing, a British Formula One motor racing team, has announced to have renewed its technology partnership with a Switzerland-based leading cyber protection and software company Acronis International GmbH. As a part of the Official Cyber Pro...

Tesla planning to set up EV manufacturing facility in Karnataka, India

Tesla planning to set up EV manufacturing facility in Karnataka, India

By Akshay Kedari

American electric car company Tesla Inc. has reportedly signed an agreement to manufacture its electric vehicles in Karnataka, India after announcing an entry into the South Asian country in 2021. The company had established its Indian subsidiary cal...

Pandemic forces Heineken to recoup profits by cutting 8000 jobs

Pandemic forces Heineken to recoup profits by cutting 8000 jobs

By Akshay Kedari

The Dutch brewing company, Heineken N.V., has recently revealed its plans to cut around 8000 jobs in an attempt to restore its operating margins after it witnessed a sharp decline in its profit trajectory amid the COVID-19 pandemic. Moreover, it will...