27.04.2023

Hiab and Kalmar to separate?

Cargotec has announced this morning that it is looking at the separation of its two core businesses - Kalmar and Hiab - into two completely standalone companies.

The move would involve the partial listing of Kalmar as a public company through a partial demerger. The directors believe such a separation “could unlock shareholder value by allowing both businesses to pursue sustainable profitable growth opportunities independently.”

The planning of this strategy is already underway with a possible listing of Kalmar on Nasdaq Helsinki during 2024. The move follows the planned disposal of Cargotec’s third company – MacGregor, which is likely to go ahead next year. The result of these changes would be Hiab returning to being an independent company – albeit with a single shareholder, and the only point of Cargotec would be as an investment company.

The announcement said: “Based on the board of director’s initial assessment, the planned partial demerger would be expected to improve Kalmar and Hiab’s business performance through higher agility, decisiveness and stronger management focus. In addition, as two standalone businesses, the companies could achieve faster organic and inorganic growth thanks to a more tailored capital allocation strategy and flexible access to external capital.”

“The board of directors will continue assessing possibilities to separate Kalmar and Hiab and will only recommend the planned transaction if upon final assessment there is evidence that enhanced shareholder value can be attained.”

Chief executive Casimir Lindholm added: “Kalmar and Hiab serve different customers and have limited cross selling synergies. Both businesses have ambitious growth plans, and we are now assessing if those would be better served as separate standalone businesses. Kalmar has recently gone through a major transformation to become a more focused business and has an excellent foundation in place to continue to grow independently. Hiab has a proven track record of profitable growth and M&A.”