Konecranes has signed an agreement with Columbus McKinnon Corporation of Canada regarding the divestment of the Stahl CraneSystems business. Konecranes will receive cash proceeds of €224-230M from the transaction depending on the 2016 result of Stahl CraneSystems. Additionally, Columbus McKinnon assumes unfunded pension liabilities that were estimated at €74M as of July 31st, 2016, during the divestment process. Konecranes expects to book an after-tax capital gain of around €190M upon closing of the Stahl divestment.
As previously reported, selling Stahl is a condition of the European Commission’s approval of Konecranes’ pending acquisition of Terex Corporation’s Material Handling and Port Solutions business lines (MHPS). Furthermore, Konecranes and Terex are not allowed to close the MHPS acquisition until the EC has approved the buyer of the Stahl business.
Stahl CraneSystems is a global supplier of hoisting technology and crane components. The company is well-known for its capability to build engineered system solutions. Its customers include distributors, crane builders as well as EPC companies. Stahl CraneSystems is headquartered in Künzelsau, Germany. In 2016, Stahl CraneSystems’ sales outside the Konecranes Group are estimated to total around €135M and the pro forma EBITDA on a stand-alone basis is estimated to be somewhat below €30M. Stahl CraneSystems has approximately 650 employees around the world.
The Stahl divestment, which is expected to close prior to April 30th, 2017, is subject not only to the EC's approval of Columbus McKinnon as a suitable purchaser, but also the German Bundeskartellamt’s merger control approval, as well of course as the closing of MHPS acquisition itself. Konecranes will use the proceeds from the Stahl divestment to amortise loans related to the MHPS Acquisition.
"We are very pleased to announce this transaction. It is an important milestone in making progress toward closing the MHPS Acquisition," said Panu Routila, President and CEO of Konecranes. "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."