Konecranes to buy R Stahl Foerdertechnik

KCI Konecranes has entered into a Memorandum of Understanding and exclusive negotiations with R. Stahl AG, Waldenburg, Germany, concerning a possible acquisition of their Material Handling division. The Material Handling division, R.Stahl Foerdertechnik, generated EUR 113 M in annual sales 2004 accounting for 46 % of the R.Stahl Group's turnover. The company has manufacturing sites in Kuenzelsau and Ettlingen, Germany. The company has approximately 750 employees.

In recent years, a new strategy was established for the Material Handling division and the business was successfully positioned in the segment of specialised engineering and high-quality lifting systems, R Stahl Foerdertechnik said.

With an acquisition of R. Stahl Foerdertechnik, KCI Konecranes, a global supplier of heavy-duty cranes to industries and harbours and related maintenances services, would gain access to highly specialised applications in the industrial crane sector such as explosion proof material handling, it said.

"The management of R. Stahl is convinced that united with KCI Konecranes, R. Stahl Foerdertechnik will be able to assume an even better position medium to long term in a highly competitive market than it would be possible as part of the R. Stahl technology group," said R. Stahl Foerdertechnik in a press release.

"In this regard, the management board feels responsible, as in the past, to the company’s employees," R. Stahl said. "It is important for the management, in connection with the negotiations with KCI Konecranes, to secure that the operations of the Material Handling division will be continued at KCI Konecranes substantially in the manner as before. KCI Konecranes has indicated its intention to maintain the sites, to develop them further and to comply with the existing works agreements and the currently valid agreement on the protection of employment and sites."

According to KCI Konecranes, the two companies would work well together: "The activities of KCI Konecranes and R.Stahl Foerdertechnik have a good strategic fit. The products and market segments are highly complementary, with only limited overlap. The planned acquisition would provide important synergies and the access to a large global installed base, " said KCI Konecranes President and CEO Pekka Lundmark.

In case of successful completion of the negotiations, the agreement on the sale of R. STAHL Foerdertechnik to KCI Konecranes shall be signed by the end of November 2005. Subject to clearance by the respective merger control authorities, the transaction is expected to close by year-end 2005, KCI Konecranes said in a press release.