HOME MINING NEWS BLOG DOWNLOADS TRAINING PARTNERS LEGAL MINING LAWS ABOUT US CONTACT US
(GMT +2)
 
Mining News
Two Crane Giants Join Forces
06 June 2017
Two Crane Giants Join Forces

Following the finalisation of Konecranes’ acquisition of Terex MHPS – which, in effect, is Demag Cranes, Hoists, Material Handling and Ports Solutions – the two global crane brands will share their considerable combined knowledge and technology, becoming a substantial force in the lifting business in sub-Saharan Africa.

The acquisition improves Konecranes’ position as a focused global leader in the industrial lifting and port solutions market. Konecranes stands to achieve substantial growth opportunities in the service business, already a stronghold of the company in Southern Africa. Konecranes has a long history of conducting routine service inspections, repairs, and refurbishment of Demag cranes.

In South Africa, the merger also extends to the Wolff Cranes brand, acquired by Demag in the late 1980s. In terms of the port-material segment, this includes handling technology, with a broad range of manual and semi-automated solutions under the Gottwald and Noell brands.

Knut Stewen, Konecranes’ Managing Director, Southern African Countries, and Vice President, Head of Region, Africa, said: “We are extremely proud to combine forces with Demag. We want to provide a home for Demag and Port Solutions, from which these businesses can grow and become stronger as part of our joint organisation. The acquisition makes it possible for us to realise a long list of synergies between our two companies. We will be a single technology company, ready to create the next generation of lifting.”

This sentiment was echoed by John Haarhoff, Managing Director of Demag MHPS: “We strongly believe that, in the long term, sharing combined technology will allow the two businesses to develop solutions that will further improve the productivity and safety of the Demag, Wolff and Konecranes brands. Together we will aim to excel at providing the services our customers require.”

In a first joint team effort, the Demag/Konecranes team signed a three-year service and maintenance contract for Arcellor Mittal’s Saldanha Steel Mill, which will require a supervisor and four technical teams on-site.

Miikka Kinnunen, Vice President, Investor Relations, explained: “Konecranes is well-prepared to deliver expected synergies, based on the extensive integration planning work carried out jointly with Demag over recent months. Of the total of €140 million per annum synergies targeted within three years, €35 million is expected to be implemented within 12 months from 1 January 2017, from which date the MHPS Acquisition is deemed effective from a financial point of view. Overall, synergies will come from procurement, operations, and SG&A. One-time implementation expenses are expected to amount to €130 million, with €60 million worth of anticipated capex. In addition, dynamic synergies related to new opportunities in global service operations are expected to lead to significant earnings growth.”

Kinnunen added further that the consideration for the Demag business was US$595 million and €200 million in cash, and 19.6 million new Class B shares. Pursuant to the Stock and Asset Purchase Agreement (SAPA) dated 16 May 2016, the final cash consideration is subject to post-closing adjustments for cash, debt, working capital, and the closing of the sale of the STAHL CraneSystems business. The final number of Class B shares may be subject to certain adjustments, in accordance with the SAPA. Based on 2015 financials, Konecranes and Demag had aggregated sales of about €3.5 billion, an adjusted EBITDA of €267 million, and a total workforce of about 19 000.

Archive
News ArticleView Article
AECOM Provides Social Services for Malawi Graphite Project View
Harmony Gold Mining Fatality at Joel View
Environmental Compliance is Important for Both Mines and Communities View
Safety Equipment Every Construction and Mining Worker Needs View
Robust Valves and Actuation Accessories for the Mining Industry View
Restating the value of Research & Development in innovation View
Illegal miners denied bail for illegal processing of gold View
33 Illegal gold miners nabbed by the Hawks View
Latest Acquisition Extends Concord Cranes’ Reach in Namibia View
Reiterating the significance of skilled personnel in an organisation View
12345678910...
Our Partners
ArriveAlive ALCO-Safe
Alcohol Breathalysers PSA
 HSE Solutions
Ctrack Intelligent Solutions  Become a Partner
Become a Partner Become a Partner
Links
Quick Links
News
  • AECOM Provides Social Services for
  • Harmony Gold Mining Fatality at Joe
  • Environmental Compliance is Importa
  • Safety Equipment Every Construction
  • Robust Valves and Actuation Accesso
  • Restating the value of Research & D
  • Illegal miners denied bail for ille
  • 33 Illegal gold miners nabbed by th
  • Latest Acquisition Extends Concord
  • Reiterating the significance of ski
  •        Articles
  • Potential Welding Safety Hazards to
  • Safety Tips for Handling a Plant Ma
  • Steps to Minimising Heavy Equipment
  • Advantages and Disadvantages of Rob
  • The Environmental Impacts of the Mi
  • Heavy Equipment Safety Procedures a
  • How Can Mining Companies Save Water
  • How Technology Has Changed The Mini
  • Moving to the Mining Industry as a
  • Recognize the importance of medical
  •        Useful Links
  • Mining Laws
  • Training
  • Downloads
  • Blog
  • About Us
  • Contact Us
  • Home  |   Contact  |   Browser  |   Disclaimer  |   Privacy Policy  |   CMS    
    © 2018 Mining Safety