16.09.2012

Cargotec to float Marine business

Cargotec has decided to spin off its Marine business – largely the MacGregor hatch and marine crane business - as a separate entity with a listing in Asia.

The move will spur a further restructuring of the business with plans to integrate its Services business into each of its three business areas – Hiab/Load Handling, Kalmar/Terminals and Marine/MacGregor. This is also intended to make those businesses more independent and allowing a slimmer corporate office function.

The Marine flotation is likely to be in the second half of 2013, assuming market conditions permit. Cargotec will retain a majority stake in the listed subsidiary.

Vertikal Comment

This is an interesting and surprising move on the part of Cargotec, however it will raise funds and give all three entities, each of which is a substantial business in its own right, more freedom to grow and prosper while cutting overheads and bureaucracy.

Cargotec and its predecessors have been guilty of restructuring almost every year or at least every 18 months in the past, often before the last one has been completed. However this one seems to make good sense and could prove liberating for what are excellent businesses operationally.