Konecranes and KION Group successfully close transaction to collaborate in the container handling lift truck business
Konecranes, a world-leading group of Lifting BusinessesTM and the KION Group, one of the two leading global manufacturers of industrial trucks, today successfully closed the transaction announced on 18 February 2013 to collaborate in the container handling lift truck business, said in the company's press release.
Based on the collaboration agreement, Konecranes with immediate effect becomes long-term supplier of container handling lift trucks to the worldwide distribution network of Linde Material Handling, which is wholly owned by KION Group. Both companies will continue to offer a full range of container handling lift trucks, including reach stackers, empty container handlers and laden container handlers.
In addition, Konecranes acquires certain assets including the product rights for container handling lift trucks from Linde Material Handling, for which the value is not disclosed. Initially, Linde Material Handling will continue to produce container handling lift trucks. Konecranes will use these product rights to further enhance the product range and will ultimately produce all container handling lift trucks at their factories.
Product support and spare parts orders will be transitioned over the next months. Once the transition is completed, distributors and customers will be notified accordingly. The objective of this transition period is to ensure that a high level of customer support is maintained.
The transaction will increase the global competitiveness of both group’s container handling lift truck activities and will improve economies of scale in R&D and manufacturing.
Theodor Maurer, member of the Executive Board of KION Group and CEO of Linde Material Handling said: "The closing of this strategic collaboration with Konecranes, as a leading player in the container handling lift truck business, is an important milestone in our strategy to continuously improve our product offerings to the customers of the Linde brand.”
Lars Fredin, Vice President and Head of Business Unit Lift trucks at Konecranes, said: “We are very excited about the opportunities we now see. We expect to grow substantially both in equipment sales and spare part sales to our partners. This transition will prove to be very positive for our own distribution and for Linde distributors. With this acquisition we are now positioning ourselves as one of the biggest suppliers in our industry which fits very well into our long term strategy.”
The acquired assets will be consolidated into Konecranes’ financial reporting during the second quarter 2013.
The companies
The KION Group – comprising the six brands Linde, STILL, Fenwick, OM STILL, Baoli and Voltas – is Europe's market leader in industrial trucks, the global number two in the industry and the leading non-domestic supplier in China. The Linde and STILL brands serve the premium segment worldwide. Fenwick is the largest supplier of material handling products in France, while OM STILL is a market leader in Italy. The Baoli brand focuses on the economy segment, and Voltas is one of the two market leaders in India. The KION Group employed more than 21,000 people and generated revenue of Euro 4.73 billion in 2012.
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2012, Group sales totaled EUR 2,170 million. The Group has 12,100 employees at 626 locations in 48 countries. Konecranes is listed on the NASDAQ OMX Helsinki (symbol: KCR1V).