Divestment of the Industrial Products unit, which makes equipment like dock levellers and car park systems, allows Konecranes to focus on its core businesses in the region and globally
Konecranes announced the planned divestment of MHE-Demag’s Industrial Products (IPD) Business to Jebsen & Jessen, allowing it to sharpen its focus on lifting equipment and services in Southeast Asia as well as globally. The deal is expected to close in April.
The IPD business to be acquired by Jebsen & Jessen Group is part of MHE-Demag, a member of the Konecranes Group which was previously a joint-venture between Jebsen & Jessen and Demag. Konecranes acquired Jebsen & Jessen’s 50% stake in MHE-Demag in January 2020.
“The divestment of our IPD business back to Jebsen & Jessen will allow Konecranes to fully focus on growth in our core businesses in the region and leverage the earlier acquisition of full ownership in MHE-Demag. During our strategic review, Jebsen & Jessen stood out as the right fit with a strong vision and strategy for the IPD business, and I am confident that the industrial product business will continue to flourish in its new home,” said Marko Tulokas, SVP, Industrial Service & Equipment, Region APAC, Konecranes.
The newly acquired business by Jebsen & Jessen Group will be known as ‘MHE’ and form the material handling equipment division of Jebsen & Jessen Technology, covering manufacturing, engineering, renting, trading, supplying and servicing of MHE’s complete range of industrial and material handling products such as dock levellers and door systems; mechanical car park systems; building maintenance units; boom lifts and Aerial Work Platforms (AWP); warehouse trucks and lift systems. MHE’s focus markets are Australia, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
Upon the finalization of the acquisition, the parties anticipate that approximately 300 highly skilled employees will join Jebsen & Jessen Group, along with related assets. The acquired business will maintain its current commercial presence, and all operations and business will proceed as usual.
“We are excited to welcome the 300-people-strong MHE-Demag Industrial Products (IPD) team to the Jebsen & Jessen Group. The business is already the clear market leader in some segments, and our ambition is to attain market leadership across the portfolio. We are committed to investing in people and the business to achieve our growth ambitions,” said Per Magnusson, Group CEO, Jebsen & Jessen Group. “The acquisition aligns well with our Advance & Build strategy and builds upon our distinctive heritage as a trusted provider of quality industrial products and value-added solutions,” Per Magnusson continues.
Since 1972, IPD has provided systems for iconic buildings in the APAC region such as the Petronas Twin Tower, KL Tower in Malaysia, Marina Bay Sands in Singapore, BNI 46 in Indonesia, Bitexco Financial Tower in Vietnam and Okada Manila in the Philippines. It also provided the mechanism for the retractable roof of the Singapore Sports Hub – the largest free-spanning dome stadium in the world.