Finnish manufacturer of material handling equipment Konecranes has reached an agreement to acquire a 70% stake in Mitsubishi Electric FA Industrial Products (MFK), a Japanese subsidiary of Mitsubishi Electric Corporation.
The proposed transaction will see Konecranes enter the Japanese market at scale by taking a controlling interest in MFK, which has a strong presence in wire rope hoists, geared motors, and related services.
The financial terms of the deal have not been disclosed.
Under the agreement, which remains subject to regulatory clearance and closing conditions, Mitsubishi Electric will retain a 30% shareholding in MFK.
Following the completion of the transaction, which is expected to take place within fiscal year ending March 2027, Konecranes will consolidate MFK as a subsidiary. The company is also expected to undergo a renaming.
MFK has operated in the Japanese market since 1944, supplying hoists, geared motors, hoist parts, and maintenance services.
It employs approximately 400 staff, operates 15 sales offices across nine regions of Japan, and generates around €90m ($102m) in annual sales.
The bulk of its revenue comes from domestic customers, with the remainder primarily from other Asian markets.
Konecranes stated that MFK’s product range aligns with its existing portfolio and will create new business opportunities in Japan, where Konecranes’ local presence has until now been limited.
Konecranes president and CEO Marko Tulokas said: “I am very pleased with this planned acquisition. Mitsubishi Electric FA Industrial Products’ technologies, products, and personnel strengthen our global footprint and give us a more significant presence in the attractive Japanese market under a world-leading and well-known brand.
“Mitsubishi Electric FA Industrial Products will benefit from being part of a global leader, and for Konecranes, Mitsubishi Electric FA Industrial Products is a very good strategic fit and brings clear synergies. This important acquisition continues Konecranes’ long-term growth focus, where acquisitions play a significant role.”
Mitsubishi Electric described the partnership as a means to enhance its domestic competitiveness and facilitate international expansion by leveraging Konecranes’ technology and network.
Mitsubishi Electric Corporation Factory Automation Systems group president senior executive officer Takayuki Tsuzuki said: “We are confident that transferring our advanced and well-proven technologies to Konecranes, a leader in hoists and geared motors, will contribute to our mutual growth and development of this business.”
