Cargotec Agrees to Divest its Stake in Consolis
Cargotec has signed an agreement to divest its 42% minority stake in the precast concrete element manufacturer Consolis to a consortium of institutional investors represented by the European Private Equity firm Industri Kapital, certain co-investors and management. The price for Cargotec's stake is approximately EUR 80 million, which clearly exceeds the book value. The divestment is subject to the buyer's financing arrangements. The closing is expected to take place during the fourth quarter 2005 when the effects also will be booked in Cargotec's financial statements.
"Following many years of hard work in developing Consolis together with the main owner Industri Kapital, the company now stands firmly positioned in its traditional markets and with exciting growth opportunities in the Eastern European markets. As we focus on our core business of cargo handling solutions, we believe it is the time for us to let Industri Kapital develop Consolis further", states Cargotec's Senior Executive Vice President and CFO Kari Heinistö.
"The combination of the activities of Consolis and Bonna Sabla which follows from this transaction will create a leading pan-European precast concrete solutions provider and is a classical example of Industri Kapital's buy and build strategy. We look forward to working together with the management teams of both Bonna Sabla and Consolis in achieving further operational excellence", says Michael Rosenlew, Partner at Industri Kapital.