Kone to Acquire TK Elevator for $34.4 Billion
Kone acquisition TK Elevator deal
Finnish elevator manufacturer Kone has officially reached an agreement to acquire its German competitor TK Elevator in a massive transaction valued at 29.4 billion euros, which is approximately 34.4 billion dollars. This deal marks the largest corporate takeover in the history of Finland and positions the newly combined entity as the largest elevator and escalator manufacturer in the world.
The acquisition involves a payment structure consisting of 5 billion euros in cash and the issuance of up to 270 million new Kone class B shares. Furthermore, the transaction includes the assumption of 9.2 billion euros in existing debt currently held by TK Elevator. This strategic move follows a decade of pursuit by the Finnish group and signals a significant consolidation within the global industrial sector.
The current owners of TK Elevator, a consortium led by private equity firms Advent International and Cinven, have supported the merger after exploring various exit strategies including a potential stock market listing.
The merger is expected to generate approximately 700 million euros in annual synergies as the companies integrate their global operations and supply chains.
Kone CEO Philippe Delorme stated that the combination will substantially improve the firm’s capacity to provide sustainable and reliable urban transportation solutions to a growing global customer base. The combined group will have illustrative annual sales of roughly 20.5 billion euros, with a significant portion of revenue derived from high-margin service and modernization contracts.
Geographically, the two businesses are highly complementary, as Kone possesses a strong presence in the Asian markets while TK Elevator maintains a robust platform across the Americas. Regulatory authorities are expected to scrutinize the deal closely due to antitrust considerations, and the companies anticipate the transaction will close in the second quarter of 2027 at the earliest. For further details on the financial impact and industrial shift, reports are available from Reuters and the Financial Times.
