Konecranes will continue to sell Kito manual products

Konecranes and Kito Corporation have dissolved the strategic alliance signed on March 23, 2010.

Konecranes says while the alliance has been successful in certain areas, the parties have agreed that it is in their interest to pursue their respective strategies independently.

The non-exclusive cross-distribution arrangements between the companies remain valid.

Konecranes will continue to sell Kito manual products (chain hoists and lever hoists) using the Konecranes brands, while Kito will continue to sell wire rope hoists made by Konecranes under its own brands.

The dissolution of the strategic alliance will allow Kito to participate in the bidding process for STAHL CraneSystems, which Konecranes has committed to divest in relation to its pending acquisition of Terex's MHPS business.

As part of the separation, Kito has bought back 5,950,000 shares, leaving Konecranes with 76,100 Kito shares.

Konecranes will receive approximately EUR48 million (USD 53.82 million) from the sale of the shares and it will book a capital gain of approximately EUR6 million (USD6.73 million) as an associated company item in its January-September 2016 interim results.