News story

Konecranes acquires 100 per cent of MMH

Thursday, 22 June 2006 ( #265 ) - HYVINKÄÄ, Finland
KCI Konecranes has raised its sales growth forecast for 2006 to more than 35 per cent after taking full ownership of MMH Holdings Inc, owner of US-based Morris Materials Handling Inc. The previous sales forecast was more than 25 per cent. Konecranes said in a statement it predicted continued good market conditions as there were no signs of a slow down in market demand. Konecranes previously held a 59.2 per cent stake in MMH. That was increased to 96.7 per cent and Konecranes then finalised a "short-form merger" to acquire the remaining share ( News #261). The acquisition price was USD64.6 million. Net debt for MMH wasabout USD5 million, bringing the total enterprise value to about USD70 million. MMH will be consolidated into KCI Konecranes Group figures from June 1, 2006. Operationally, MMH is an independent entity within the KCI Konecranes Group. MMH and its subsidiaries had annual sales of USD170 million in fiscal 2005, for the year ending on October 31, 2005. For the first half of fiscal 2006, MMH had sales of USD102 million and an operating profit of USD5.5 million. MMH is expected to generate sales of about EUR90 million (USD113.1 million) for June-December 2006. The current order book stands at EUR77 million (USD96.8 million).