MHS Konecranes (“MHS”) and Kito have today entered into a definitive agreement concerning the business transfer through asset purchase. Based on this agreement, Kito will purchase the necessary assets related to the hoist business of MHS, and continue the hoist and related spare parts business currently operated by MHS. The transfer of the assets is expected to be finalized November 1, 2010. The transaction relates to the strategic alliance signed March 23, 2010, between Konecranes and Kito.
As part of the strategic alliance announced March 23, 2010, Konecranes and Kito signed a Memorandum of Understanding according to which Konecranes intends to sell the hoist distribution business of its Japanese joint venture MHS Konecranes to Kito. As a preparation for this transaction, Konecranes on June 4, 2010, finalized the agreement to increase its ownership in MHS Konecranes to 100 percent by acquiring the remaining 35 percent stake from Meidensha Corporation.
After the sale of MHS’ hoist distribution business to Kito, Konecranes will continue its end-user customer business in Japan as a supplier of cranes and crane service to local customers.
The parties have agreed not to disclose the transaction price. The transaction is not expected to have any material impact on Konecranes’ results.
Further information:
Press
Mikael Wegmüller, Vice President, Marketing & Communications
E-mail: [email protected] or phone +358 20 427 2008
Investors and Analysts:
Miikka Kinnunen, Director, Investor Relations
E-mail: [email protected] or phone +358 20 427 2050
This press release is available on our website, www.konecranes.com.
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 2009, Group sales totaled EUR 1,671 million. The Group has 9,600 employees, at 545 locations in 43 countries. Konecranes is listed on NASDAQ OMX Helsinki Ltd (symbol: KCR1V).
