Kone Cranes buys out Jebsen & Jessen of MHE-Demag
PRESS RELEASE – Konecranes has signed an agreement to acquire the 50% stake in its MHE-Demag JV held by partner Jebsen & Jessen for EUR 147 million. The acquisition will significantly improve Konecranes’ market position in the fast-growing Southeast Asian markets, creating further opportunities for service sales and simplifying the distribution channel for industrial cranes and components.
The transaction will allow Konecranes to fully consolidate MHE-Demag going forward. Konecranes estimates that the transaction will add approximately EUR 150-180 million in annual sales and approximately EUR 25-30 million of annual EBITA to the Group by 2022, including the targeted synergies.
Konecranes is currently reporting MHE-Demag as an associated company. In 2018, the net result in the Group attributable to MHE-Demag was approximately EUR 5 million.
“With the MHPS acquisition now behind us, Konecranes is ready to take the next steps on its growth path. This acquisition underlines our intent to pursue profitable growth, and meaningfully expands our footprint in a strategically important region with several fast-growing markets. The acquisition will also bring greater balance to Konecranes’ regional sales structure,” said Teo Ottola, Interim CEO and CFO of Konecranes.
Jebsen & Jessen will receive approximately EUR 147 million in cash and deferred payments upon the expected closing of the deal on January 2, 2020. MHE-Demag is expected to have a minor net cash position at closing. The acquisition is expected to close without the need for regulatory approvals.
MHE-Demag is a supplier of industrial cranes and services in Southeast Asia under the MHE and Demag brands, engineering, manufacturing and maintaining a comprehensive range of industrial cranes and hoists. The company has approximately 1,800 employees, including some 700 service engineers. It operates 11 factories and more than 70 service locations throughout Southeast Asia and is headquartered in Singapore.