(SPRINGFIELD, OHIO) After announcing the acquisition of 59.2% of the shares on MMH Holdings on May 19, Konecranes Inc.¹s subsidiary, HMM Acquisition Corp., further increased its stake in MMH Holdings, Inc. to 96.7% in a series of transactions, and then completed a short form merger as a result of which Konecranes, Inc. now owns 100% of MMH Holdings, Inc. shares.
Subsequently, KCI Konecranes raised its sales growth estimate for year 2006 to exceed 35% over 2005 compared to a previous estimate of over 25%. The revision to previously announced growth figures is primarily the result of the acquisition of MMH Holdings, Inc., the owner of U.S. based Morris Material Handling, Inc.
With over 120 years of history in North America, Morris Material Handling, Inc., is a recognized player in the maintenance service and overhead crane industry. The addition of MMH¹s product line, especially for the steel industry, complements KCI Konecranes¹ offering.
According to Tom Sothard, President of KCI Konecranes¹ Region Americas in Springfield, Ohio, KCI Konecranes sees good market conditions continuing with no signs of slowing market demand.
³The capital equipment markets remain strong nationally as well as globally, and the addition of Morris Cranes¹ installed base opens up enormous potential for crane service in North America,² says Sothard. ³The service market is a multi-billion-dollar business, and between Morris and Konecranes, we are the clear market leader in that industry segment, which also helps enhance our equipment and product sales. With the Morris acquisition we are projecting sales in the range of $1.9 billion USD annually.²
The total acquisition price for the100% ownership amounts to approximately
$64.6 million USD. The net debt amounts to approximately $5 million USD, which gives a total enterprise value of approximately $70 million USD. MMH Holdings, Inc will be consolidated into the KCI Konecranes Group figures as of June 1, 2006. Operationally, MMH Holdings, Inc. continues as an independent entity within the KCI Konecranes Group.
³Konecranes is known worldwide for leading-edge lifting technology, and Morris Cranes is a well-established company with a very large installed
crane base in North America,² Sothard said. ³As Konecranes¹ service
technology merges with this well-accepted brand, industry can look forward to these two strong engineering companies bringing the best of each product offering to their respective customer bases,² he continued.
Morris is particularly strong in the primary metals market with patent technologies developed for its ladle cranes, and is a market leader for cranes used in nuclear power generation and woodyard operations in North
³In terms of personnel, we¹ve acquired a great deal of experience with this company, and we are very happy to have the members of this highly educated and experienced organization joining Konecranes¹ worldwide family of companies,² Sothard said. ³We plan to capitalize on the best practices of each company to enhance our customer service and to offer the most proven and best technologies to our respective customers,² he continued.
Morris Material Handling Inc. and its subsidiaries (MMH) had annual sales of approximately $170 million USD in fiscal year 2005, which ended 31 October 2005. First half of fiscal year 2006 sales were $102 million USD, with an operating profit of $5.5 million USD (5.4 % of sales). MMH is expected to generate sales of approximately $110 million USD for the period June-December 2006. The current order book stands at approximately $100 million USD.
Through its subsidiaries MMH also has local operations in Canada, Mexico and Chile.
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).
Linda Graham, President, Wordsworth Ltd. Advertising / Public Relations tel. 1-713-937-0043
Mr. Tom Sothard, President, KCI Konecranes Region Americas tel. 1-937-525-5533