Kone completes a $34 billion acquisition of TKE to establish the biggest elevator producer in the world
In an agreement for €29.4 billion ($34.4 billion), Finnish elevator producer Kone will buy its German competitor TK Elevator (TKE), making it the largest elevator manufacturer in the world.
This deal will put Kone ahead of its US rival Otis, establish a European leader. Bolster its position in the Americas, where TKE is more prevalent. As the industry struggles with weaker demand in China and looks to expand in other countries.
The deal with TKE’s private equity owners, Advent International and Cinven, along with other investors. Is the biggest private equity transaction since records started in 1980 and one of the biggest acquisitions in Europe in recent memory.
The resulting business will employ over 100,000 people and generate more than €20 billion in sales annually.
Shares in Kone fell 5%, reaching their lowest level since August, while those of Germany’s Thyssenkrupp, which owns 16.2% of TKE, rose 8.7%.
This merger would give Kone greater scale in maintenance and modernization. The most profitable segments of its elevator business—as well as boost its presence in the US. Kone has a strong presence in Europe and Asia, while North America accounted for about a third of TKE’s sales.
