Konecranes has signed an agreement with McKinnon Corporation regarding the divestment of its STAHL CraneSystems business, a condition of the European Commission (EC)’s approval of the pending acquisition of Terex’s MHPS segment.
The Finnish equipment manufacturer and Terex are not allowed to close the MHPS acquisition until the EC approves the buyer of the STAHL CraneSystems business.
The divestment, which is expected to be completed by April 30 next year, is subject to the EC’s approval of Columbus McKinnon as a suitable purchaser, the German Bundeskartellamt’s merger control approval and the closing of the MHPS acquisition.
According to a company statement, Konecranes will receive cash proceeds of €224-230m from the transaction depending on the 2016 result of STAHL CraneSystems.
Konecranes is expected to use the proceeds from the business divestment to amortise loans related to the acquisition of Terex’s MHPS segment.
The Finnish company said in a statement that Columbus McKinnon will assume unfunded pension liabilities, estimated at €74m as of July 31, during the divestment process, adding that it expects to book a €190m after-tax capital gain upon closing of the divestment.
Panu Routila, president and CEO of Konecranes, said: “We are very pleased to announce this transaction. It is an important milestone in making progress toward closing the MHPS acquisition.
“We are satisfied that we could achieve this strategic milestone in a timely manner, thereby minimising the period of uncertainty for the STAHL CranesSystems business and personnel.”