KONE agreed on 29 April to combine with TK Elevator, the Düsseldorf-based lift and escalator maker owned by an Advent International and Cinven-led consortium, in a cash-and-share deal that values TKE at €29.4bn including debt.
Why KONE Corporation is buying TK Elevator (TKE)
KONE said the combination would create a more innovative company with an illustrative €20.5bn of annual sales, about 65% of it from service and modernisation, and expected about €700m of annual run-rate synergies. It expects the deal to add to earnings per share, before one-off costs, in the first full year after completion.
“By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success.”
Deal terms and financing
The consortium receives €5bn in cash and 270 million new KONE class B shares, valued at about €15.2bn, and will hold about 33.8% of the enlarged group. KONE also assumes TKE's interest-bearing net debt of about €9.2bn. Antti Herlin keeps more than half of KONE's voting rights and remains chairman, while Philippe Delorme leads the combined company.
Regulatory approvals and timing
KONE shareholders approved the share issue at an extraordinary general meeting on 3 June, where nominees from Advent and Cinven were also elected to the board, conditional on completion. The deal still needs merger clearances, which analysts expect to be demanding, and KONE has guided to completion no earlier than the second quarter of 2027.
Market context
The enlarged group would be nearly twice KONE's current size, with more than 100,000 employees and operations in over 100 countries, and would be based in Finland. KONE gains a larger presence in the Americas and more recurring service and maintenance contracts.
