Konecranes and Kito Corporation (“Kito”) have decided to dissolve the strategic alliance signed on March 23, 2010, between the companies. While the alliance has been successful in certain areas, the parties have agreed that it is in the companies’ interest to pursue their respective strategies independently.
The non-exclusive cross-distribution arrangements between the companies remain valid. Konecranes will continue to sell Kito manual products (chain hoists and lever hoists) using the Konecranes brands, whereas Kito will continue to sell wire rope hoists made by Konecranes under its own brands.
The dissolution of the strategic alliance will allow Kito to participate in the bidding process for STAHL CraneSystems that Konecranes has committed to divest in relation to its pending acquisition of Terex’s MHPS business.
Kito has on September 26, 2016, announced that it will conduct a share repurchase of 5,950,000 shares on September 27, 2016. Konecranes has notified Kito that, due to the dissolution of the alliance, it will tender all its 5,950,000 Kito shares to be repurchased by Kito.
Kito has been consolidated as an associated company in Konecranes’ financial reporting.
KONECRANES PLC
Miikka Kinnunen
Director, Investor Relations
FURTHER INFORMATION
Miikka Kinnunen, Director, Investor Relations, Konecranes Plc, tel. +358 (0)20 427 2050
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity-enhancing lifting solutions as well as services for lifting equipment and machine tools of all makes. In 2015, Group sales totaled EUR 2,126 million. The Group has 11,400 employees at 600 locations in 48 countries. Konecranes is listed on Nasdaq Helsinki (symbol: KCR1V).
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www.konecranes.com