KCI Konecranes will also assume approximately EUR 30m in pension liabilities.
It added: “Depending on the level of net working capital at closing, the seller is also entitled to an additional consideration estimated at EUR 5m. Subject to approval from relevant competition authorities, final closing of the transaction is expected on December 30, 2005.”
German competition authorities have already cleared the transaction.
“We are convinced that R.Stahl Fördertechnik and its people are a great asset for KCI Konecranes and our customers,” said Pekka Lundmark, president and CEO, KCI Konecranes.”
Stahl’s Material Handling division generated sales of EUR 113m and an EBITDA-margin of 5% in 2004. The full year 2005 profitability of the division is expected to improve from the 2004 level. The operations of R.Stahl Fördertechnik will continue under the Stahl brand and will be part of the Group’s Standard Lifting Equipment business area.
Meanwhile, KCI Konecranes will supply 19 SM Spacemaker cranes to SeverCorr LLC for a new mini steel mill in Lowndes County, Mississippi. SeverCorr is a joint venture between steel industry veteran John Correnti, former CEO of Nucor, and Severstal Group, a Russian-based global steel producer with worldwide operations. The mill will produce hot-rolled, cold-rolled and coated products, and will be the first mini-mill in the U. S. to produce exposed automotive grade steel. The cranes will be built in Houston, Texas by Konecranes America, Inc and delivered from May through July 2006. The value of the order is approximately 10 MUSD.
