14.11.2024

Buyer found for MacGregor

Hiab owner Cargotec has sold the MacGregor crane and marine hatch manufacturing business to funds managed by Triton Partners for €480 million, which, it says, will go towards supporting Hiab’s future growth.

This sale plus the earlier flotation of Kalmar into a separate business, frees the Cargotec name to go and Hiab to become a standalone publicly quoted company. The whole thing should be completed by April next year.
At the same time Cargotec chief executive Casimir Lindholm will step down and Hiab president Scott Phillips will become chief executive of Hiab. Cargotec chief financial officer Mikko Puolakka would continue in his role with Hiab.

Last year MacGregor had revenues of €733 million with an operating profit of €33 million.

Triton Partners was founded in 1997 and is based in Luxembourg, it is mid-market specialist investor in businesses that provide “mission critical goods and services” in Business Services, Industrial Tech, and Healthcare.” It has states that it has previous experience in the maritime sector.

Cargotec expects to record a goodwill impairment loss of around €200 million on the transaction in this year’s results. The deal is subject to regulatory approvals and a works council consultation.

Casimir Lindholm said: “The agreement to sell MacGregor represents the last major milestone in our project to unlock shareholder value by separating Cargotec’s businesses into standalone companies. The two year project has progressed according to our plan and is now in its final stages. The proceeds from the Transaction will boost Hiab’s ambitious growth plans through innovation along with Mergers & Acquisitions.”

Triton investment advisor Ilkka Tuominen added: “MacGregor stands out due to its engineering capabilities, broad and sustainable product offering; high quality equipment with a strong reputation. Triton looks forward to collaborating with the company and its employees to develop further on this market leading position especially by strengthening the aftermarket platform where we see great potential. MacGregor is at the core of Triton’s investment focus to acquire market leading companies with strong potential and a competitive edge.”

Vertikal Comment

This is very positive news and brings to an end a 20 years of Cargotec during which time changing strategies have been a regular issues creating challenges for the cost Hiab business. But in recent years it has been bouncing back and becoming independent again can only help with that progress.