English

KCI KONECRANES AGREEMENT TO BUY R.STAHL FÖRDERTECHNIK SIGNED

Report this content 
KCI KONECRANES PLC  STOCK EXCHANGE RELEASE  21 December, 2005 08.00 a.m. 1(2)


KCI KONECRANES AGREEMENT TO BUY R.STAHL FÖRDERTECHNIK SIGNED

KCI Konecranes and R.STAHL AG have signed a definitive agreement concerning the
sale of STAHL's Material Handling division, R.Stahl Fördertechnik, to KCI
Konecranes. The purchase price on a cash and debt free basis is EUR 30.5 M. In
addition, KCI Konecranes will assume approximately EUR 30 M in pension
liabilities. Depending on the level of net working capital at closing, the seller
is also entitled to an additional consideration estimated at EUR 5 M. Subject to
approval from relevant competition authorities, final closing of the transaction
is expected on December 30, 2005. The 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. " The transaction brings together some of the crane industry's
strongest brands and most innovative technologies. The move also accelerates KCI
Konecranes' strategic initiative to advance its positions on the German market."

STAHL's Material Handling division generated sales of EUR 113 M 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 acquisition is expected to be EPS
neutral before synergies in 2006 and contribute positively to earnings per share
from 2007.

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.

Background

On 26 October 2005, KCI Konecranes Plc announced its intention to acquire R.Stahl
Fördertechnik GmbH. R.Stahl Fördertechnik is a significant global player in the
field of specialised lifting applications, such as explosion proof material
handling. The company employs approximately 750 people and has manufacturing
sites in Künzelsau and Ettlingen, Germany. The company has 13 subsidiaries
outside Germany and a wide network of sales representatives all over the world.

Main attractions to KCI Konecranes include complementary products, a large global
installed base of STAHL cranes and a strong offering for the automotive and
petrochemical industries. Specialised products such as explosion proof systems
are steadily growing in importance, and have so far formed only a limited part of
KCI Konecranes' product portfolio. The acquisition also advances the group's
position in new markets such as India, Spain and Portugal through Stahl's local
presence.


About R.STAHL AG
Founded in 1876 by Rafael Stahl, R. STAHL is a technology group providing
products for demanding special performance areas. The main emphasis is on the
Explosion Protection and Material Handling divisions providing over 90% of the
group's turnover. R. STAHL is headquartered in Waldenburg, Germany, and listed on
the Frankfurt and Stuttgart stock exchanges. For further information please visit
their corporate website at  MACROBUTTON HtmlResAnchor www.stahl.de.

About KCI Konecranes
KCI Konecranes is a world leading crane technology and service company.
Maintenance services are provided for cranes of every make. The product range
includes light crane systems, heavy-duty cranes for process industries and
shipyards, special harbour cranes for bulk materials and containers as well as
      2 (2)

reach stackers and lift trucks. In 2004, Group sales totalled EUR 728 million.
The Group has 5,000 employees in 35 countries. KCI Konecranes is listed on the
Helsinki Stock Exchange (symbol: KCI1V).

KCI KONECRANES PLC


Franciska Janzon
IR Manager




FURTHER INFORMATION
KCI Konecranes Plc
Pekka Lundmark, President & CEO, phone: +358-20 427 2000
Teuvo Rintamäki, Chief Financial Officer, phone: +358-20 427 2040




DISTRIBUTION
www.konecranes.com
Helsinki Stock Exchange
Media

Subscribe