December 3, 2004

Kone unit acquires MacGregor

Kone Cargotec, the cargo-handling business of Finland's Kone Corporation, has agreed to purchase the entire share capital of MacGregor International AB from Sweden’s Industri Kapital and Gambro AB.

The debt-free transaction price is approximately EUR 186 million.

Kone will finance the acquisition primarily with proceeds from selling own shares held by the company on the Helsinki Stock Exchange, starting on 10 December, 2004. The acquisition is subject to approval by competition authorities.

Kone has announced a plan to divide into two separately listed companies, Kone Corporation and Cargotec Corporation on June 1, 2005.

Should the demerger be carried out, MacGregor will be included in Cargotec.

MacGregor products include hatch covers, cranes, cargo-securing systems, RoRo equipment, shipboard elevators and escalators, and galleys.

MacGregor's 2004 net sales are expected to total EUR 370 million

“Kone Cargotec’s strategy is to grow and maintain market leading positions globally with strong brands in all its areas of business related to the flow of goods. MacGregor is a global leader and a forerunner in its industry. MacGregor supplements Kone Cargotec’s container- and load-handling businesses Kalmar and Hiab very well. Integrating these businesses into a Group of companies creates clear synergy opportunities,” says Kone Cargotec President Carl-Gustaf Bergström.

“Other main reasons for acquiring MacGregor are its strong presence in Asia, a global service network producing after-sales revenues equal to 30 percent of total sales, and a business concept focusing on going downstream in the value chain, which is similar to Kone Cargotec’s strategy. Kone Cargotec’s annual net sales will rise to approximately EUR two billion through this acquisition, and we expect it already to have a positive impact on Kone Cargotec’s financial result in 2005”, Bergström continues.

Kone and MacGregor have enjoyed a long-term alliance for the manufacture and service of marine elevators and escalators. This alliance is the world’s leading supplier of elevators for cruise vessels.


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