Konecranes Oyj - Company Announcement

Konecranes Plc - Acquisition of MHPS business to continue in accordance with the stock and asset purchase agreement

KONECRANES PLC  STOCK EXCHANGE RELEASE  May 27, 2016 at 9:45

On May 16, 2016, Konecranes announced that it has signed an agreement (the
“Stock and Asset Purchase Agreement) to acquire from Terex Corporation
(“Terex”) its Material Handling & Port Solutions segment ("MHPS") (the
"Acquisition"). 

According to its terms, the Stock and Asset Purchase Agreement could be
terminated by Terex prior to May 31, 2016, if it enters into, or reasonably
believes that it will promptly enter into, a legally binding merger agreement
with Zoomlion Heavy Industries Science & Technology Co., Ltd. (“Zoomlion”), in
which case, it would pay Konecranes a termination fee of USD 37 million. 

On May 27, 2016, Zoomlion announced that is has decided to terminate the
negotiation in relation to the proposed acquisition of Terex. Konecranes will
continue to work towards completing the Acquisition in accordance with the
Stock and Asset Purchase Agreement. 

“There are a number of key points that define the rationale of this deal. This
Acquisition will enhance our position as a focused and global leader in service
and equipment in industrial lifting and port solutions. The complementary range
of MHPS equipment will give us a complete product offering. The Acquisition
will significantly expand our international presence to better compete in the
global markets. We will achieve critical scale in technology development and
manufacturing operations. Of central importance is the fact that with MHPS we
will have additional installed base for cranes. This, including the
digitalization of our services, will offer broader opportunities to expand our
service business and create earnings potential,” stated Panu Routila, President
and CEO, Konecranes. 

The Acquisition is subject to regulatory approvals and other closing
conditions, including shareholder approval at a Konecranes Extraordinary
General Meeting of shareholders, and is expected to close in early 2017. 



KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations



FURTHER INFORMATION

Analysts and Investors:

Miikka Kinnunen, Director, Investor Relations, Konecranes Plc,

tel. +358 20 427 2050



Konecranes is a world-leading group of Lifting Businesses™, serving a broad
range of customers, including manufacturing and process industries, shipyards,
ports and terminals. Konecranes provides productivity-enhancing lifting
solutions as well as services for lifting equipment and machine tools of all
makes. In 2015, Group sales totaled EUR 2,126 million. The Group has 11,600
employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq
Helsinki (symbol: KCR1V). 



DISTRIBUTION
Nasdaq Helsinki
Major media
www.konecranes.com



FORWARD LOOKING STATEMENTS

This stock exchange release contains forward-looking statements regarding
future events, including statements regarding Konecranes, Terex or MHPS, the
Acquisition described in this stock exchange release and the expected benefits
of such transaction and future financial performance of the combined businesses
of Konecranes and MHPS based on current expectations. These statements involve
risks and uncertainties that may cause results to differ materially from those
set forth in the statements. When included in this document, the words “may”,
“expects”, “intends”, “anticipates”, “plans”, “wants”, “will”, “projects”,
“estimates” and the negatives thereof and analogous or similar expressions are
intended to identify forward-looking statements. However, the absence of these
words does not mean that the statement is not forward-looking. Terex and
Konecranes have based these forward-looking statements on current expectations
and projections about future events. These statements are not guarantees of
future performance. 

Because forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of which
are beyond the control of Konecranes, include, among others: Konecranes’
ability to obtain shareholder approval for the Acquisition and the required
amendments to the Konecranes’ articles of association; the ability of
Konecranes to obtain regulatory approval for the Acquisition; Konecranes’
ability to issue class B shares and list American Depositary Shares on the New
York Stock Exchange; the total consideration to be paid by Konecranes to Terex
in connection with the Acquisition; the possibility that the length of time
required to complete the Acquisition will be longer than anticipated; the
achievement of the expected synergies and  benefits of the Acquisition; risks
associated with the integration of the MHPS business into Konecranes; the
ability of Konecranes and Terex to terminate the Stock and Asset Purchase
Agreement under certain circumstances; the possibility that Konecranes’
businesses may suffer as a result of uncertainty surrounding the Acquisition;
Konecranes’ ability to obtain financing for the Acquisition; Konecranes’
financial position after the Acquisition; and other factors, risks and
uncertainties that are more specifically set forth in Konecranes’ annual and
interim reports. Konecranes disclaims any obligation to update the
forward-looking statements contained herein.