15.10.2010

Konecranes buys WMI Cranes

Konecranes has agreed to buy Indian based crane company WMI Cranes, strengthening its position in the growing Indian industrial crane market. WMI - owned by its managing director Gopal Vazirani and his family - is one of the leading manufacturers of heavy-duty cranes in India.

WMI has more than 4,000 cranes operating in India and has an extensive national sales network. Its cranes are used in a wide variety of sectors but it is particularly strong in the fast growing Indian steel industry. WMI operates two production plants, one in Mumbai and one in Jejuri, near Pune, where it has recently invested in modern manufacturing technology.

Konecranes will acquire WMI’s shares in two phases initially 51 percent of for INR 1,690 million (€28 million) and the remaining 49 percent about one year later. WMI is entitled to a performance linked part of the purchase price and the total maximum price for 100 percent of the shares in WMI is INR 3,600 million (€60 million). Konecranes will use existing cash reserves for the purchase.

For the year ended March 31, 2010, WMI’s net sales totalled nearly €30 million and its order book was more than €50 million. WMI employs approximately 350 people and additionally contracted workforce of about 600 persons.

“Our aim is to further grow the business potential by extending the offering with technologies developed by Konecranes,” said Pekka Lundmark, president and CEO of Konecranes. “The acquisition also adds India into our sourcing and supply network.”

“Our customers will benefit in terms of combined offering of products and technology of both companies and high-quality service,” said Gopal Vazirani, managing director and main owner of WMI.
WMI will be consolidated into Konecranes’ financial reporting once the regulatory approvals have been received probably during the fourth quarter of 2010.