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Kone Acquires TK Elevator for €29.4 Billion, Forging Finland's Largest-Ever Corporate Deal
🇫🇮 Finland /Economy & Trade

Kone Acquires TK Elevator for €29.4 Billion, Forging Finland's Largest-Ever Corporate Deal

From Helsingin Sanomat · (7m ago) Finnish Positive tone

Translated from Finnish, summarized and contextualized by DistantNews.

TLDR

  • Kone, a Finnish elevator and escalator manufacturer, announced its acquisition of its competitor TK Elevator for 29.4 billion euros.
  • This deal marks the largest corporate acquisition in Finnish history and will make Kone the world's largest elevator manufacturer.
  • The acquisition aims to strengthen Kone's market position, particularly in North and South America, and foster innovation and customer service.

In a landmark announcement that reverberates through the global business community, Kone Oyj has revealed its intention to acquire TK Elevator, the former elevator division of Germany's Thyssenkrupp. The staggering 29.4 billion euro price tag makes this the largest corporate acquisition ever undertaken by a Finnish company, a testament to Kone's ambition and global standing.

This arrangement reflects the board's clear objective to create the strongest possible foundation for long-term value creation.

— Antti HerlinKone's Chairman explains the strategic rationale behind the acquisition.

This strategic move is poised to reshape the vertical transportation industry. Upon completion, Kone will ascend to the position of the world's largest manufacturer of elevators and escalators, surpassing its rivals. The acquisition is particularly significant for bolstering Kone's presence in key growth markets, notably North and South America, where TK Elevator holds a strong foothold.

The board is convinced that the combination will promote greater innovation and better customer service, which creates the foundation for the sustainable growth of the combined company.

— Antti HerlinHerlin highlights the expected benefits of the merger in terms of innovation and customer service.

Antti Herlin, Kone's chairman and largest shareholder, emphasized that the deal aligns with the board's objective of building a robust foundation for long-term value creation. He expressed confidence that the merger will spur greater innovation and enhance customer service, laying the groundwork for sustainable growth. The financial structure of the deal, involving a mix of cash and shares, has been carefully arranged, with Herlin personally acquiring a portion of Kone shares to satisfy the sellers' preference for a higher cash component.

By merging, we are creating the foundation for an even more innovative company with good prerequisites for long-term success.

— Philippe DelormeKone's CEO expresses optimism about the future prospects of the combined entity.

This bold acquisition signifies Kone's commitment to consolidating its leadership in a mature market. While Kone previously competed for TK Elevator in 2020, this time the Finnish giant has emerged victorious. The combined entity is projected to generate substantial annual revenue and profitability, underscoring the strategic rationale behind this historic transaction. For Finland, this deal represents a significant moment of corporate achievement on the international stage.

The transaction is strategically an 'absolutely good thing' for Kone.

— Panu LaitinmäkiThe head of equity research at Danske Bank comments on the strategic value of the acquisition.
DistantNews Editorial

Originally published by Helsingin Sanomat in Finnish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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