Kone Oyj is nearing completion of a cash-and-stock agreement to acquire TK Elevator, according to a report that cited people familiar with the matter. If completed on the terms described, the transaction would be among the largest private equity exits in Europe.
Sources say the Finnish lift and escalator maker has been putting final touches on the deal with TK Elevator's owners, the private equity firms Advent and Cinven. Those close to the negotiations indicated an announcement could be made as soon as Wednesday, though the timing is subject to the completion of remaining arrangements.
The proposed deal pegs TK Elevator's value at roughly 29 billion, or about $34 billion, when including the company's debt, according to the people cited. The structure of the consideration is described as a combination of cash and Kone stock.
Context and immediate implications
While the discussions appear to be in an advanced stage, the parties are still finalising certain elements before making a public announcement. The transaction, as reported, involves established private equity owners and a listed strategic buyer, with valuation figures that incorporate TK Elevator's outstanding liabilities.
The significance of the deal lies in its scale: the reported valuation and the involvement of major private equity sellers mark it as one of the largest exits of its kind in European private equity history.
What remains uncertain
- Sources described the agreement as close to final, but completion depends on final arrangements between the parties.
- Timing for a public announcement was described as possibly as soon as Wednesday; that timing could change while details are settled.
- The reported valuation includes debt, meaning the headline figure incorporates liabilities as well as equity value.
These points reflect the information provided by people familiar with the negotiations. No additional specifics about deal terms, regulatory review, or financing arrangements were disclosed in those accounts.
Note: The details above reflect accounts from people familiar with the negotiations as described in the report referenced.