KONE has on 10 September 2003 signed an agreement for the sale of its tractor business Valtra, including the subsidiary Sisu Diesel, to U.S.-based AGCO Corporation.
In accordance with the agreement, the purchase price is EUR 600 million. The transaction is subject to relevant competition authority approval.
ACGO is a leading global designer, manufacturer and distributor of agricultural equipment and related replacement parts. In 2002, AGCO had net sales of USD 2,923 million, of which tractors represented 58 percent.
In 2002, Valtra net sales totaled EUR 761.7 million with an operating margin of 5.9 percent, return on assets of 15 percent and return on capital employed in excess of 25 percent.
AGCO has stated its intent to continue to invest in the profitable growth of Valtra. The Valtra brand and business will be maintained in its current manufacturing locations along with its distribution network.
In June KONE disclosed its decision to concentrate on the elevator, escalator and automatic door service business, and on container and load handling, while seeking new owners for the tractor and forest machine businesses. When concluded, the divestments will give KONE the opportunity to substantially decrease gearing and net debt, which improves the possibilities to develop and grow KONE Elevators & Escalators and KONE Materials Handling.
The sale of Forest Machines is in progress.
The acquirer will host a conference for media and analysts on 10 September 2003 at 11:00 a.m. Finnish time at KONE Building, Keilasatama 3, Espoo, Finland.
Secretary to the Board of Directors
Senior Vice President,
Corporate Communications & IR
For further information, please contact:
Carl-Gustaf Bergström, President, KONE Materials Handling, tel. +358 (0)400 530 887
Kari Heinistö, Senior Executive Vice President, KONE Materials Handling,
tel. +358 (0)400 530 820
Klaus Cawén, Executive Vice President, KONE, tel. + 358 (0)400 709 148
Outi-Maria Liedes, Senior Vice President, Corporate Communications & IR, KONE,
tel. +358 (0)204 75 4501
KONE is a global service and engineering company that specializes in moving people and goods. Annual net sales total EUR 5,500 million, and we employ nearly 35,000 people. KONE's B shares are listed on the Helsinki Exchanges.
AGCO Corporation, headquartered in Duluth, Georgia, is a global designer, manufacturer and distributor of agricultural equipment and related replacement parts. AGCO products are distributed in over 140 countries. AGCO offers a full product line including tractors, combines, hay tools, sprayers, forage, tillage equipment and implements through more than 8,450 independent dealers and distributors around the world. AGCO products are distributed under the brand names AGCO, AgcoAllis, AgcoStar, Ag-Chem, Challenger, Farmhand, Fendt, Fieldstar, Gleaner, Glencoe, Hesston, Lor*Al, Massey Ferguson, New Idea, RoGator, Soilteq, Spra-Coupe, Sunflower, Terra-Gator, Tye, White and Willmar.
AGCO provides retail financing through AGCO Finance in North America and through Agricredit in the United Kingdom, France, Germany, Ireland, Spain and Brazil. In 2002, AGCO had net sales of $2.9 billion.
Valtra designs, manufactures, markets and services Valtra branded tractors. Valtra is the market leader in the Nordic countries and the fastest growing brand in Europe. In 2002, net sales totaled EUR 762 million and production of the plants in Finland and Brazil was approximately 18,000 tractors. Valtra’s subsidiary Sisu Diesel, located in Nokia, Finland, produced more than 27,000 off-road diesel engines in 2002. Valtra has approximately 2,400 employees.