On 1 October 2020, Konecranes Plc (“Konecranes”) and Cargotec Corporation (“Cargotec”) announced that the boards of the companies had signed a combination agreement and plan to combine the two companies through a merger (the “Future Company”), subject to regulatory and other approvals (the “Transaction”).
The Boards of Directors of Konecranes and Cargotec have agreed to select Mr. Mika Vehviläinen as the President and CEO of the Future Company, and the Board of Directors of Cargotec has made the appointment accordingly. The appointment of Mika Vehviläinen will become effective upon completion of the Transaction which is currently expected to take place by the end of H1/2022. Until completion, both companies will operate fully separately and independently.
Mika Vehviläinen has served as Cargotec’s CEO since 2013. Mr. Vehviläinen’s also acts as a member of the Board of Directors of Danfoss A/S. Prior to joining Cargotec, Mr. Vehviläinen acted as President and CEO of Finnair Plc between 2010 and 2013, as COO for Nokia Siemens Networks between 2007 and 2009 and in various positions with Nokia between 1991 and 2007. Further, Mr. Vehviläinen has acted as Vice Chairman of the Board of Directors of Elisa Corporation between 2014 and 2018 (member between 2012 and 2014) and of Vacon Plc between 2010 and 2014 (member during 2009). Mr. Vehviläinen holds a Master of Science degree in Economics.
Mr. Christoph Vitzthum, the Chairman of the Future Company and the Chairman of Konecranes: ”Today’s announcement is a defining moment for the Future Company and the industry as a whole, and it marks the culmination of a rigorous selection process involving the boards of both Cargotec and Konecranes. The Future Company has an ambition to become a global leader in sustainable material flow, and both Boards are confident that Mika Vehviläinen, with his robust leadership and industry experience and proven track record of creating value at Cargotec and other companies, is exactly the right person for the position.”
Mika Vehvilainen
Mr. Ilkka Herlin, the Chairman of Cargotec: “Speaking on behalf of Cargotec’s Board, we are delighted that we will continue to benefit from Mr. Vehviläinen’s experience and strong leadership. Our customers are increasingly seeking green solutions and this will be a major business driver and value creation opportunity for the Future Company. Mr. Vehviläinen has done an outstanding job and played an integral role over the past years transforming Cargotec’s business and the whole industry towards a more sustainable one. I’m pleased that Mr. Vehviläinen will lead the Future Company and ensure a seamless transition to the next phase of our sustainable growth journey together with Konecranes.”
Mr. Mika Vehviläinen, the President and the CEO of the Future Company: “I am energised and excited about the potential of the Future Company, and the chance to work together with the extraordinary talent from both companies to deliver the very best for our customers and society around us in a truly sustainable way. It will be an honour and an inspiring opportunity to lead the Future Company when the first day of operations arrives, and I am thankful to the Boards of both companies for their trust at this historic moment.”
KONECRANES PLC
Board of Directors
FURTHER INFORMATION
Kiira Fröberg, Vice President, Investor Relations, tel. +358 (0) 20 427 2050
Analyst and Investor Webcast and Media Conference
Konecranes and Cargotec will together host a press, analyst and investor conference including a Q&A session to discuss today’s announcement.The event will be held today, on 6 August 2021 at 11 a.m. EEST at Flik Helsinki’s Studio Eliel at Sanomatalo, Töölönlahdenkatu 2, Helsinki. Mr. Christoph Vitzthum, the Chairman of the Future Company and the Chairman of Konecranes, Mr. Ilkka Herlin, the Chairman of Cargotec and Mr. Mika Vehviläinen, the President and the CEO of the Future Company, will be present at the conference.
In order to prevent the spread of the COVID-19 -and due to prevailing regulatory recommendations, it is recommended to join the event either via webcast or by telephone.
Joining via webcast
The event can be viewed as a live webcast at https://sustainanablematerialflow.videosync.fi/2021-08-06. The conference call will be recorded and an on-demand version of the conference will be available later during the day.
Joining via telephone
The event can be attended by telephone, please dial in 5 to 10 minutes before the beginning of the event.
The telephone conference, during which questions may be presented, can be accessed by registering here. The registration opens 15 minutes prior to the event. The event conferencing system will call the participant on the phone number provided and place the participant into the event. The language of the event is English.
The telephone conference can also be accessed without advance registration with code 396098 by calling to one of the following numbers:
Denmark +45 35 15 80 48
Estonia +372 674 3051
Finland +358 (0)9 7479 0360
France +33 (0)1 76 77 22 73
Germany +49 (0)69 2222 13426
Italy +39 06 8750 0722
Norway +47 2350 0322
Singapore +65 6320 9041
Sweden +46 (0)8 5033 6573
United Kingdom +44 (0)330 336 9104
United States +1 323-794-2095
Note that by dialling in to the conference call, the participant agrees that personal information such as name and company name will be collected.
IMPORTANT NOTICE
The Merger and the merger consideration securities have not been and will not be registered under the U.S. Securities Act of 1933 (the “Securities Act”), and may not be offered, sold or delivered within or into the United States, except pursuant to an applicable exemption of, or in a transaction not subject to, the Securities Act.
The information in this release is not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident of, or located in, the United States or any other locality, state, country or other jurisdiction where such distribution or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction and it does not constitute an offer of or an invitation by or on behalf of, Konecranes, or any other person, to purchase or sell any securities.
The information in this release contains forward-looking statements, which are information on Konecranes’ current expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance and business. These statements may include, without limitation, any statements preceded by, followed by or including words such as “target,” “believe,” “expect,” “aim,” “intend,” “may,” “anticipate,” “estimate,” “plan,” “project,” “will,” “can have,” “likely,” “should,” “would,” “could” and other words and terms of similar meaning or the negative thereof. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond Konecranes’ control that could cause Konecranes’ actual results, performance or achievements to be materially different from the expected results, performance or achievements expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding Konecranes’ present and future business strategies and the environment in which it will operate in the future.
Konecranes is a world-leading group of Lifting Businesses™, serving a broad range of customers, including manufacturing and process industries, shipyards, ports and terminals. Konecranes provides productivity enhancing lifting solutions as well as services for lifting equipment of all makes. In 2020, Group sales totaled EUR 3.2 billion. The Group has around 16,500 employees in 50 countries. Konecranes shares are listed on the Nasdaq Helsinki (symbol: KCR).
Source: Konecranes