Finnish manufacturer of cranes Konecranes Plc has completed the acquisition of Terex Corporation’s Material Handling & Port Solutions (MHPS) business.
The company said that the acquisition of MHPS will improve its position “as a focused global leader in the industrial lifting and port solutions market.”
Of the total of EUR 140 million p.a. synergies targeted within three years, EUR 35 million is expected to be implemented within 12 months from January 1, 2017, from which date the MHPS Acquisition is deemed effective from a financial point of view, according to Konecranes.
“The MHPS acquisition is a milestone in building our future. It is a great achievement to bring Konecranes and MHPS together and we expect it to create substantial value for our customers and shareholders,” Christoph Vitzthum, Chairman of the Board of Konecranes, said.
At the beginning of August 2016, the European Commission granted its approval for the acquisition deal, which was conditional on Konecranes’ commitment to divest its STAHL CraneSystems business.
Konecranes earlier signed EUR 1.5 billion (USD 1.6 billion) unsecured financing facilities to fund the proposed acquisition. The committed credit facility includes a syndicated EUR 300 million term loan with a tenor of three years, EUR 600 million amortizing term loan with a tenor of five years and EUR 400 million revolving credit facility with a tenor of five years, alongside a EUR 200 million bridge term loan facility.