Cargotec is acquiring Konecranes via a statutory absorption merger that paves the way for an entity with illustrative combined sales of EUR 7.00 billion and comparable operating profit of EUR 565.00 million in fiscal 2019.
Immediately prior to the deal, the Helsinki-based cargo-handling machinery manufacturer will carry out a three for one share split of both its class B and A shares.
Following this, shareholders of Konecranes shall receive 2.08 new class B and 0.36 new class A stocks in Cargotec for each scrip they currently hold.
This implies the Hyvinkää-headquatered cranes and lifting equipment manufacturer would own 50.0 per cent of the shares and votes of the future company.
Cargotec and Konecranes have decided to come together to “create a global leader in sustainable material flow, with numerous valuable customer-facing brands bolstering its position across all its businesses in industries, factories, ports, road and sea-cargo handling”.
Furthermore, the amalgamation is expected to unlock value for shareholders through complementary strengths, increased research and development scale, global top talent and cost savings.
The future company, the name of which will be determined and announced at a later stage, is expected have over 8,500 employees serving customers from over 800 locations from around the world.
Clients will include container handling, manufacturing, transportation, construction and engineering, paper and pulp, metals productions, mining, power, chemicals and marine industries.
On an illustrative basis, the future company, would have had roughly EUR 591.00 million in earnings before interest, tax, depreciation and amortisation in the 12 months ended 31st December 2019.
It would have had gearing of 59.9 per cent and an equity to asset ratio of 37.8 per cent, as at 30th June 2020.
Zephyr, the M&A database published by Bureau van Dijk, shows 423 deals targeting Finnish companies have been announced in 2020 to date.
At an estimated EUR 5.69 billion, the Cargotec-Konecranes merger will be the largest of the year so far, and the country’s third biggest on record.
© Zephus Ltd