Two and a half years after the announcement, the time has now come: The Finnish Cargotec Group has found a buyer for its cargo handling subsidiary MacGregor.
The MacGregor business will be sold to the financial investor Triton for an enterprise value of €480m, Cargotec announced today. The reason given is to support the future growth of the subsidiary Hiab. The sale is part of a large-scale transformation of the Cargotec Group, which was already initiated in 2022 after the planned mega-merger with Konecranes had to be cancelled. It had already been announced at the time that MacGregor was to be sold. However, the sale was repeatedly postponed – partly because the timing for the sale of the business was “not ideal”: the uncertainty on the financial market combined with the early phase of MacGregor’s turnaround stood in the way of the plans.
Now the timing is apparently considered better. Cargotec’s transformation project, “which includes listing Kalmar as an independent company, preparing Hiab for an independent future and finding a solution for MacGregor”, has now progressed in line with the plan and targets set by the Board of Directors for 2023.
“After reviewing various alternatives, the Board is convinced that the transaction represents the best alternative for Cargotec’s shareholders from a value creation perspective,” it said. Following the completion of the transaction, Hiab would be the only remaining division of Cargotec and could pursue its strategy on an independent basis.
MacGregor: Focus on “aftermarket”
Triton was founded in 1997 and is a European investor specializing in medium-sized companies. According to its own information, the investor focuses on investments in companies that offer “business-critical goods and services in the three core sectors of business services, industrial tech and healthcare”. Triton employs over 200 investment professionals in 11 offices and invests through three complementary “all-weather” strategies: Mid-Market Private Equity, Smaller Mid-Cap Private Equity and Opportunistic Credit.
Ilkka Tuominen, Investment Advisory Professional at Triton, emphasised: “MacGregor stands out for its technical capabilities, broad and sustainable product offering, high-quality equipment and strong reputation. Triton looks forward to working with the company and its employees to build on this market-leading position, particularly by strengthening the aftermarket platform where we see great potential. MacGregor is at the centre of Triton’s investment focus to acquire market-leading businesses with great potential and competitive advantage.”
Cargotec CEO steps down
Following the sale, the company name of Cargotec will be changed to Hiab. At the same time as the name change comes into effect, the current President and CEO of Cargotec, Casimir Lindholm, intends to step down. The Board of Directors would then appoint the President of the Hiab business unit, Scott Phillips, as President and CEO of the renamed company. The Finns currently anticipate that these changes could take place on 1 April 2025.
MacGregor is a cargo handling and transshipment company. In 2023, MacGregor recorded a turnover of €733m euros and a comparable operating profit of €33m. Cargotec expects to recognise a tax-free loss of approximately €200m from the transaction in the fourth quarter of 2024.
The transaction is subject to regulatory approvals and consultation with works councils in the respective jurisdictions. The transaction is expected to close no later than 1 July 2025. In addition to financing Hiab’s growth, the Management Board is considering using part of the proceeds from the transaction to pay a special dividend.
“Last major milestone”
“The agreement on the sale of MacGregor represents the last major milestone in our project to unlock shareholder value by spinning off the Cargotec businesses into independent companies. The two-year project has progressed according to our plan and is now in its final phase. The proceeds from the transaction will support Hiab’s ambitious growth plans through innovation and M&A. MacGregor will be a strategic asset for the new owner,” said CEO Lindholm.
