Demag is currently 81% owned by US venture capital firm Kohlberg Kravis Roberts & Co (KKR).

Hoist was told: “Around 70% of the company will be floated – and the timing is right to do so.” The source would not elaborate on the timing of the flotation.

Demag’s net debt (including pensions) is around Eur 315m. Equity value is around the Eur 700m mark.

Hoist believed the Germany-based hoist manufacturer and crane builder company was ready to announce a stock market flotation this month – as reported in the June issue – following comments made by Demag vice president, service, Thomas Wagner.

Investment banks Lehman Brothers and Goldman Sachs managed the plan, and were reported to be considering the sale of the company instead of floating it on the stock market, Wagner said.

After KKR’s share, the remainder of the company is owned by German industrial group Siemens.

The company has a complex recent history. It was hived off from long-time owner Mannesmann Dematic in 2000 into a new firm called Atecs, which was taken over by Bosch and Siemens in 2001. In July 2002, the majority of the company was bought by KKR, and the minority retained by Siemens. CEO Harald Joos joined the company in December 2003.

The company has remained unavailable to comment on both the flotation and on an apparent online image makeover at a new website address – – which may or may not have had anything to do with the announcement.