Konecranes has completed the acquisition of MHPS business

By MEq January 8, 2017 21:50

Konecranes has completed the acquisition of Terex Corporation’s MHPS (Material Handling & Port Solutions) business. The acquisition of MHPS will improve Konecranes’ position as a focused global leader in the industrial lifting and port solutions market. Konecranes will achieve substantial growth opportunities in the service business as well as critical scale for further technological development.

Christoph Vitzthum, Chairman of the Board of Konecranes, said: “The MHPS Acquisition is a milestone in building our future. It is a great achievement to bring Konecranes and MHPS together and we expect it to create substantial value for our customers and shareholders.”

Panu Routila, President and CEO of Konecranes, commented: “We are extremely proud to combine forces with MHPS. 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. 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.”

Konecranes is well prepared to deliver expected synergies based on the extensive integration planning work carried out jointly with Terex over recent months. Of the total of EUR 140 million p.a. synergies targeted within three years, EUR 35 million is expected to be implemented within 12 months from January 1, 2017, from which date the MHPS Acquisition is deemed effective from a financial point of view. Overall, synergies will come from procurement, operations and SG&A. One-time implementation expenses are expected to be EUR 130 million, with EUR 60 million of capex expected. In addition, dynamic synergies related to new opportunities in global service operations are expected to lead to significant earnings growth.

Konecranes and Terex Corporation have completed the MHPS transaction.
The combined operations of Konecranes and MHPS start on January 4, 2017.
Terex Corporation becomes a 25 percent shareholder in Konecranes after receiving class B shares.