Cargotec looking to split Kalmar and Hiab
27 April 2023
Materials handling equipment manufacturing group Cargotec said it will investigate and initiate a process to potentially separate its Hiab and Kalmar crane divisions into two standalone companies.
The Finland-headquartered company said its port crane and equipment manufacturing division Kalmar would become a new listed company by partially demerging it from Cargotec. “The separation of Kalmar and Hiab could unlock shareholder value by allowing both businesses to pursue sustainable profitable growth opportunities independently,” the company said.
Late in 2022 Cargotec announced its intention to sell off its MacGregor marine crane and equipment division. If the Kalmar separation goes ahead, in 2024, and a buyer can be found for MacGregor, it will leave three separate businesses. Of the three Hiab has been a consistently strong performer in recent years.
Helping them to grow
Casimir Lindholm, Cargotec president and CEO, commented, “Kalmar and Hiab serve different customers and have limited cross selling synergies. Both businesses have ambitious growth plans and we are now assessing if those would be better served as separate standalone businesses. Kalmar has recently gone through a major transformation to become a more focused business and has an excellent foundation in place to continue to grow independently. Hiab has a proven track record of profitable growth and M&A.”
The Board of Directors said it will only recommend the planned transaction if there is evidence that enhanced shareholder value can be attained. “The separation of Kalmar and Hiab would be the logical next step in the growth journey. The Board is convinced that the separation would unlock shareholder value by allowing both businesses to pursue sustainable profitable growth opportunities independently,”