Konecranes and Terex in Merger of Equals

Two major port moving and lifting equipment manufacturers – Finland’s Konecranes Plc and U.S.-based Terex Corporation – have agreed to combine their businesses in a merger of equals and form a company to be called Konecranes Terex Plc, with an estimated combined 2014 revenues and EBITDA of EUR 7.5 billion (USD 10bn) and EUR 636 million (USD 845m) respectively. 

Under the agreement, Terex shareholders will receive 0.80 Konecranes shares for each existing Terex share. Equivalent terms will apply to instruments granted under Terex’ long-term incentive plans.

Upon closing of the transaction, based on current fully diluted shares outstanding, Terex shareholders will own approximately 60% and Konecranes shareholders will own approximately 40% of the combined company.

Konecranes Terex is planned to be listed on Nasdaq Helsinki and New York Stock Exchange. The transaction is expected to be accretive to both companies’ shareholders in the first full year after closing.

The combined company will be parent to a family of brands in the areas of industrial lifting, port solutions, aerial work platforms, materials processing and cranes construction.

”’With a focus on Lifting and Material Handling solutions, Konecranes Terex will be in an excellent position to deliver enhanced growth in revenues and margins through several strategic advantages, including significant cross-selling opportunities,” Stig Gustavson, Chairman of the Board of Konecranes, said.

”There is a common culture between the two organizations, with both companies having long histories of designing competitive and innovative solutions. Together, we will have the opportunity to expand what Konecranes and Terex have built and become even stronger in the future.”