HELSINKI — Finnish elevator maker Kone on Wednesday announced the acquisition of its German rival TK Elevator (TKE) in a giant share-and-cash deal valuing TKE at 29.4 billion euros ($34.4 billion).
The group formed by the merger will be nearly twice the size of the current Kone group, with more than 100,000 employees in over 100 countries and annual revenue of around 20.5 billion euros, the two companies said in a statement.
TKE is owned by a consortium including the private equity groups Advent and Cinven.The merger between Kone and TKE will make it the largest elevator maker, placing it ahead of the erstwhile industry leader Otis, based in the US and second-placer Schindler of Switzerland.
The new group will be based in Finland and led by Kone’s current French Chief Executive Philippe Delorme.
“This industry-revitalizing transaction brings together two exceptional global businesses with highly complementary geographic footprints and innovation platforms,” the joint statement said.
“Kone’s presence in Asia is complemented by TKE’s footprint in the Americas, and TKE opens new geographies for Kone, resulting in a well-balanced global presence.”
The takeover is the largest corporate acquisition ever carried out in Finland and one of the biggest in Europe, according to Finnish media.
The consortium that owns TKE will receive 5 billion euros and 270 million shares in the new Kone, valued at 15.2 billion euros, and will hold 33.8 percent of the new entity, according to the statement.
The two groups expect annual synergies of 700 million euros from the acquisition.
Kone had wanted to acquire TKE six years ago when it offered 17 billion euros for the company, but subsequently withdrew it due to antitrust concerns.
