Kone Corporation has bought 98 percent of Partek’s shares to form a super company with EUR5.6 billion (USD5.47 billion) in annual sales and a workforce of more than 35,000.
The purchase price has not been released.
Under the deal, announced on September 9, Kone acquires Partek's Kalmar (container handling), Hiab (load handling), Valmet (forest machines) and Valtra (tractors) businesses. Kone is now the parent company of Partek, and aims to de-list its newest subsidiary from the Helsinki Stock Exchange by the end of the year.
Kone, in a statement, said Partek’s minimal debt and strong cash flow made the acquisition possible. While the deal increased Kone’s debt, the planned sale of Partek's non-core operations and the strong cash flow of both companies would decrease indebtedness.
Kone plans to substantially improve the profitability of Partek’s individual businesses. Savings would be achieved through consolidation of Kone and Partek. Divestment of non-core assets would create cash flow.
Production would be streamlined, with a focus on core businesses and markets to increase flexibility. Kone would focus on boosting Partek’s after-sales business, which currently commands 15 percent of Partek's net sales. Kone’s corresponding figure is about 60 percent.
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