KCI KONECRANES HEADLINESIndustry Suppliers /
KCI Konecranes
Konecranes Acquires Majority Stake in Morris
May 25, 2006 May 25, 2006 — HMM Acquisition Corp., a wholly owned Konecranes Inc. subsidiary, has acquired 59.2% of the shares of MMH Holdings, Inc., the owner of U.S.-based Morris Materials Handling, Inc. The total consideration amounts to approximately $38.5 million.
With over 120 years of history in North America, Morris Material Handling is a recognized resource in the maintenance service and overhead crane industry.
Due to the nature of the transaction, it has not been possible for Konecranes to conduct a due diligence investigation of the target company. However, based on its knowledge of the crane and crane maintenance industries, Konecranes says it has no reason to believe that Morris Materials Handling’s general business and financial risk profile would materially deviate from what is typical in the U.S. for this field.
Konecranes says that it intends to explore possibilities to acquire additional shares in MMH Holdings, Inc.
The Blackstone Group LP advised Konecranes Inc. on this transaction.
KCI Konecranes is a world-leading crane technology and service-company. The company provides maintenance services for cranes of every make, with a product range including light crane systems, heavy-duty cranes for process industries and shipyards, special harbor cranes for bulk materials and containers as well as reach stackers and lift trucks. In 2005, Group sales totaled EUR 971 million. The Group has over 6,000 employees in 38 countries.
Headquartered in Oak Creek, Wis., Morris Material Handling had annual sales of approximately $170 million in fiscal 2005. The company’s sales were $102 million in the first half of fiscal 2006, with an operating profit of $5.5 million (5.4% of sales). The company has approximately 980 employees.