Columbus McKinnon Corporation will buy STAHL CraneSystems

Konecranes has signed an agreement with Columbus McKinnon Corporation for the sale of the STAHL CraneSystems business.

Konecranes will receive cash proceeds of EUR224-230 million (USD240-247 million) from the transaction, depending on the 2016 result of STAHL CraneSystems.

Additionally, Columbus McKinnon assumes unfunded pension liabilities that were estimated at EUR74 million (USD80 million) as of July 31, 2016, during the divestment process.

Konecranes expects to book an after-tax capital gain of approximately EUR190 million (USD204 million) on the closing of the STAHL divestment. 

The STAHL divestment relates to the European Commission's approval of Konecranes' pending acquisition of Terex Corporation's MHPS business, which is conditional on Konecranes divesting its STAHL CraneSystems business. Furthermore, Konecranes and Terex are not allowed to close the MHPS acquisition until the Commission has approved the buyer of the STAHL CraneSystems 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 approximately EUR135 million (USD145 million) and the pro forma EBITDA on a stand-alone basis is estimated to be just below EUR30 million (USD32 million).

STAHL CraneSystems has approximately 650 employees around the world. 

The STAHL divestment, which is expected to close prior to April 30, 2017, is subject to the European Commission's approval of Columbus McKinnon as a suitable purchaser, the German Bundeskartellamt's merger control approval, as well as the closing of the MHPS acquisition.

Konecranes will use the proceeds from the STAHL CraneSystems divestment to amortise loans related to the MHPS acquisition. 

Panu Routila, president and CEO of Konecranes, sees the transaction as "an important milestone in making progress toward closing the MHPS acquisition".

"We are satisfied that we could achieve this strategic milestone in a timely manner, thereby minimising the period of uncertainty for the STAHL CraneSystems business and personnel," he says.