HELSINKI, April 29 - Kone has agreed to buy German competitor TK Elevator in a transaction valued at 29.4 billion euros, equivalent to $34.40 billion using the exchange rate of $1 = 0.8546 euros. The deal, which involves TK Elevator’s private equity owners Advent International and Cinven, would combine two of the largest global players in elevator and escalator manufacturing and services.
Kone said the planned combination would produce the largest lift maker worldwide and that the transaction ranks among Europe’s largest takeover deals this year. The company also described the transaction as the highest valued corporate takeover in Finnish history.
Management outlined expected financial benefits from the merger, with planned synergies estimated at approximately 700 million euros on an annual run-rate basis. Kone highlighted those savings as part of the rationale for the transaction.
In a statement, Kone’s chief executive, Philippe Delorme, said: "This combination would meaningfully enhance our ability to meet customers’ growing demand for reliable and sustainable solutions and services," reiterating the company’s emphasis on service quality and sustainability as part of the combined group’s proposition.
The announcement identifies the private equity firms Advent International and Cinven as the sellers of TK Elevator. Beyond the headline value and the synergy estimate, the company provided no further detail in this release on timing, regulatory processes, or integration steps required to complete the transaction.
Context and implications
- The agreement would consolidate market share in the elevator and escalator sector by combining Kone and TK Elevator into a single, larger entity.
- Kone has quantified expected cost and efficiency gains from the deal through an estimated annual run-rate synergy figure of roughly 700 million euros.
- The sellers in the transaction are the private equity firms Advent International and Cinven, which currently own TK Elevator.
The release included the conversion rate for readers noting the dollar value of the deal and described the transaction as a landmark takeover for Finland. The company framed the acquisition in customer-focused terms, emphasizing improvements in reliability and sustainable solutions and services as part of the combined offering.