Konecranes Inc. Subsidiary Acquires Majority Stake of U.S. Based MMH Holdings, Inc.
HMM Acquisition Corp., a wholly owned Konecranes Inc. subsidiary, has acquired 59.2% of the shares of MMH Holdings, Inc., the owner of U.S. based Morris Materials Handling, Inc. The total consideration amounts to apprx. USD 38.5 M.
With over 120 years of history in North America, Morris Material Handling, Inc., is a recognised player in the maintenance service and overhead crane industry. Morris Material Handling, Inc. has its headquarters in Oak Creek, Wisconsin. Annual sales for the company in fiscal year 2005 were approximately USD 170 M. First half of fiscal year 2006 sales were USD 102 M, with an operating profit of USD 5.5 M (5.4% of sales). The company has approximately 980 employees. This information is based on Morris Materials Handling financial update published on May 10, 2006.
Due to the nature of the transaction it has not been possible to conduct a due diligence investigation of the target company. However, based on Konecranes Inc.'s knowledge of the crane and crane maintenance industries the company has no reason to believe that Morris Materials Handling, Inc.'s general business and financial risk profile would materially deviate from what is typical in the U.S. in this field.
Konecranes Inc. intends to explore possibilities to acquire additional shares in MMH Holdings, Inc. The impact of the acquisition on the financial position and operations of KCI Konecranes will be published when the outcome of such exploration allows for any assessments.
The Blackstone Group L.P. advised Konecranes Inc. on this transaction.
Further information can be obtained from
Mr. Pekka Lundmark, President and CEO, tel. +358-20 427 2000
Mr. Teuvo Rintamäki, CFO, tel. + 358-20 427 2040
Mr. Tom Sothard, President, Region Americas tel. 1-937-525-5533
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 reach stackers and lift trucks. In 2005, Group sales totalled EUR 971 million. The Group has over 6,000 employees in 38 countries. KCI Konecranes is listed on the Helsinki Stock Exchange (symbol: KCI1V).
