Finnish overhead crane giant KCI Konecranes has acquired the assets of the hoist and crane business of Shepard Niles, Inc. of Montour Falls, New York, USA. KCI Konecranes was the successful bidder for the business conducted at an auction in the United States Bankruptcy Court in Rochester, New York on 5 March. The purchase was made as a part of the bankruptcy proceedings to secure the best price for the benefit of the secured creditors.
Shepard Niles is unlikely to continue manufacturing. KCI Konecranes’ main interest is its after-market services and parts business. Shepard Niles has a large installed base of overhead travelling cranes as the company has a 100-year history of crane production. Konecranes said that ‘depending on the results of an environmental study of the facilities’ it would operate out of the existing Shepard Niles office and retain those employees associated with that part of the business.
The total consideration payable consists mainly of $975,000 in accounts receivable and $2.17m in inventory and intangible assets including the trade name and trade marks, engineering drawings, customer records etc.
Annual sales of replacement parts are currently $5m. An additional $500,000 of sales comes from other aftermarket activities including service, in house repair and field modernisations.
The Finnish-designed hoists that are assembled in Springfield, Ohio and sold in North America with the R&M brand as well as the Konecranes brand are now also being sold with Shepard Niles branding through Shepard Niles’ distribution channels. It is estimated that an incremental $2m in sales will result from these products by the second year of operation, said Konecranes.
It is understood that Konecranes outbid other parties that offered to continue Shepard Niles’s operations in Montour Falls NY USA. It is understood that the Cleveland Tramrail business segment is being sold to Gorbel of Rochester NY USA.
