Cargotec sells MacGregor business to funds managed by Triton for an enterprise value of EUR 480 million to support Hiab's future growth

Cargotec Corporation has agreed to sell its MacGregor business segment to funds managed by Triton for an enterprise value of EUR 480 million as part of a deal aimed at boosting Hiabs expansion prospects, in the future.

The transition, to a Hiab is anticipated to occur on April 1 2025.

Cargotecs transformation initiative is moving forward as planned. Has reached the milestones set by the Board for 2023 by taking steps such as establishing Kalmar as a separate entity and preparing Hiab for independent operations while addressing MacGregors challenges proactively and effectively. After exploring various options available to them the Board is confident that the Transaction offers the most value, for Cargotecs shareholders in terms of creating value. Following the completion of the Transaction Hib will be the business remaining under Cargotecs umbrella and will have the freedom to pursue its strategic goals independently.

After finalizing the deal to sell MacGregor and signing the agreement accordingly Cargotecs Board of Directors is preparing to suggest a name change proposal to the shareholders in Cargotecs General Meeting – proposing a shift from Cargotec to Hiab. Coordinating with this name alteration process the present President and CEO of Cargotec Casimir Lindholm has conveyed his decision to resign from his role following the completion of a transformation initiative, within the Cargotec group. The Board of Directors is set to designate Scott Phillips as the President and CEO of the revamped company. Present day Cargotec. Which will be rebranded as Hiab business entity on 1st April 2025 according to Cargotecs estimates. Mikko Puolakka will retain his role as CFO in the standalone Hiab as, per plans.

The completion of the deal is anticipated to take place no, than July 1 2025.

MacGregor is a player in the field of environmentally friendly maritime freight and cargo management offerings, with a robust range of products and services to offer customers.Alongside this performance in 2023 MacGregor achieved sales of EUR 733 million. Generated a comparable operating profit of EUR 33 million.

Triton is known as an investor in the European mid market sector with a focus on investing in companies that offer essential products and services in the fields of Business Services, Industrial Tech and Healthcare sectors. Having experience, in investing in the maritime industry Triton has established itself as a reputable player when it comes to carve out investments.

The Transactions enterprise value amounts to EUR 480 million for Cargotecs financial report in the fourth quarter of 2024 expects to incur a tax exempt loss of about EUR 200 million due to the Transactions outcome as a goodwill impairment, within discontinued operations adjustments affecting comparability Cashtec anticipates that together with goodwill impairment separating MacGregor will incur costs totaling approximately EUR 25 million likewise accounted for in discontinued operations adjustments affecting comparability section.

The completion of the Transaction depends on obtaining approvals and consulting with works councils in the respective jurisdictions involved before the anticipated deadline of July 1st in 2025, at the latest.To support Hiabs expansion efforts and growth plans; the Board is considering utilizing a portion of the proceeds obtained from the Transaction to distribute dividends.

The decision to sell the business came after Cargotecs Board of Directors decided on November 14th of 2022 that MacGregor would not remain part of Cargotecs portfolio in the future; however the timing for divesting the business was not considered ideal initially. In May 2024 Cargotec initiated the sale process, for MacGregor as its performance and market conditions had notably improved.

The decision to sell MacGregor marks the significant achievement in our initiative to enhance shareholder value through the division of Cargotecs businesses, into independent entities, a project that has followed our timeline over the past two years and is now nearing completion. The funds generated from the deal will support Hiabs plans for expansion through new ideas and acquisitions.The acquisition of MacGregor will position it as an asset for its new proprietor who is committed, to enhancing and prioritizing the business operations to facilitate additional growth and increased profitability " as stated by Casimir Lindholm,Cargotecs CEO.

MacGregors standout features include its engineering capabilities, diverse and eco friendly product range top notch equipment quality and solid reputation in the industry setting it apart from others in the market scene. Triton is excited about the prospect of joining forces with MacGregor and its dedicated workforce to further enhance its position as a market leader – by bolstering its aftermarket platform where significant growth opportunities lie. Ilkka Tuominen, an Investment Advisory Professional at Triton emphasizes MacGregors role, in Tritons investment strategy of acquiring top tier companies with great potential and a competitive edge.

MacGregors financial results will reflect as part of operations.

Following the agreement to sell MacGregor has been signed by Cargotec; the MacGregor business area will now be categorized under discontinued operations starting from the quarter of 2024 onwards. Cargotec intends to release its updated details before the 2024 financial statements review is published.

The latest forecast, for 2024.

In 2024 Cargotec predicts that Hiabs comparable operating profit margin will exceed 14%.

The projected profitability for the business sector, in 2024 is outlined based upon the methodologies utilized for the financial reporting of 2023.

Context, for the revised perspective.

The forecast for Hiab remains unchanged since October 23rd of 2024 without any revisions made far to alter it due to MacGregor being classified under discontinued operations in Cargotecs outlook for 2024 has been adjusted accordingly by excluding the MacGregor business entity from it to reflect the losses incurred as a result of the transaction which will not have any impact, on Cargotecs overall outlook moving forward.

Cargotec Corporation is the company, in question.