Konecranes completes Indian acquisition17 August 2011
WMI Cranes, based in Kolkata, engineers overhead cranes for a range of sectors, including chemical, steel, fertilizer, paper, cement and stock yards. It offers bulk handling equipment such as stackers and spreaders for use in ports, as well as parts and services.
With manufacturing facilities in Mumbai and Jejuri, the company has installed 4,000 cranes in India. Its net sales last year exceeded €30m.
In October 2010, Konecranes entered into an agreement to acquire WMI Cranes. In February, Konecranes acquired 51% of WMI Cranes’ shares, gaining the minimum requirement for a merger. In March, Konecranes decided to repurchase a maximum amount of 3,000,000 of its own shares saying the shares could be used as compensation in possible acquisitions.
By August it had purchased the remaining 49% of WMI Cranes’ shares. Under the purchase agreement, Konecranes paid €57m, (INR3,578m) for all the company’s shares, including €2m invested in WMI Cranes’ equity.
Konecranes says it has acquired the company to target the growing market for cranes in India. It projects that WMI Cranes’ strong order book will spur further sales growth in the year to come. However, the acquisition will have a neutral impact on the company’s earnings per share.