Konecranes Oyj - Company Announcement

Konecranes has signed an agreement with Columbus McKinnon Corporation regarding the divestment of the STAHL CraneSystems business

KONECRANES PLC  STOCK EXCHANGE RELEASE  December 7, 2016 at 09:30 EET

Konecranes has signed an agreement with Columbus McKinnon Corporation
(“Columbus McKinnon”) regarding the divestment of the STAHL CraneSystems
business (“STAHL Divestment”). Konecranes will receive cash proceeds of EUR
224-230 million from the transaction depending on the 2016 result of STAHL
CraneSystems. Additionally, Columbus McKinnon assumes unfunded pension
liabilities that were estimated at EUR 74 million as of July 31, 2016, during
the divestment process. Konecranes expects to book an after-tax capital gain of
approximately EUR 190 million upon closing of the STAHL Divestment. 

The STAHL Divestment relates to the European Commission’s approval of
Konecranes’ pending acquisition of Terex Corporation’s (“Terex”) MHPS business
(“MHPS Acquisition”), 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 EUR 135 million and the pro forma EBITDA on a stand-alone
basis is estimated to be somewhat below EUR 30 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 MHPS Acquisition. 

Konecranes will use the proceeds from the STAHL CraneSystems divestment to
amortize loans related to the MHPS Acquisition. 

"We are very pleased to announce this transaction. It is 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
minimizing the period of uncertainty for the STAHL CranesSystems business and
personnel," says Panu Routila, President and CEO of Konecranes. 


KONECRANES PLC

Miikka Kinnunen
Director, Investor Relations





FURTHER INFORMATION
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc, tel. +358 (0)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 11,100
employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq
Helsinki (symbol: KCR1V). 





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www.konecranes.com