Transformation into a standalone Hiab is expected to take place on April 1, 2025.
Cargotec’s transformation project, including listing Kalmar as a separate company, preparing Hiab for its standalone future, and finding a solution for MacGregor, has progressed according to the plan and targets set by the Board in 2023. After considering different alternatives, the Board is convinced that from the value creation perspective, the Transaction represents the best alternative for Cargotec’s shareholders. Once the transaction has been completed, Hiab will be the only business left in Cargotec and can pursue its strategy on a standalone basis.
As the agreement to sell MacGregor has been signed, Cargotec’s Board of Directors is planning to propose to Cargotec’s General Meeting of shareholders that the company’s name be changed from Cargotec to Hiab. Simultaneously, as the name change enters into force, the current President and CEO of Cargotec, Casimir Lindholm, has announced his intention to step down as President and CEO after a successfully executed transformation project of the Cargotec group. The Board of Directors would then appoint the President of the Hiab business, Scott Phillips, as the President and CEO of the renamed company, the current Cargotec. Cargotec currently estimates that these changes to transform into a standalone Hiab could take place on April 1, 2025. Current Cargotec CFO Mikko Puolakka will continue as CFO of the standalone Hiab.
Closing of the Transaction is expected to occur by July 1, 2025, at the latest.
MacGregor is a leader in sustainable maritime cargo and load handling, with a strong portfolio of products, services, and solutions. In 2023, MacGregor recorded sales of EUR 733 million and a comparable operating profit of EUR 33 million.
Triton is a leading European mid-market sector-specialist investor. Triton focuses on investing in businesses that provide mission-critical goods and services in its three core sectors: business services, industrial tech, and healthcare. Triton has previous experience of investing in the maritime sector and is a proven leader in the practice of carve-out investments.
The enterprise value of the Transaction is EUR 480 million. Cargotec expects to record a tax-exempt loss of approximately EUR 200 million on the Transaction in the fourth quarter of 2024 results. The loss will be recorded as a goodwill impairment in items affecting comparability as a part of discontinued operations. Cargotec estimates that the total costs to separate MacGregor, in addition to the goodwill impairment, would be approximately EUR 25 million and recorded in items affecting comparability as a part of discontinued operations.
The Transaction is subject to regulatory approvals and works council consultation in relevant jurisdictions. Closing of the Transaction is expected to occur by 1 July 2025 at the latest. In addition to funding Hiab’s growth, the Board evaluates using part of the proceeds from the Transaction to pay extra dividends.
The sale of the business follows Cargotec’s Board of Directors decision on November 14, 2022, that MacGregor will not be part of Cargotec’s portfolio in the future. However, from a value creation perspective, the timing for divesting the business was not ideal at the time. In May 2024, Cargotec started the business sales process as MacGregor’s performance and market conditions had clearly improved.
“The agreement to sell MacGregor represents the last major milestone in our project, which is to unlock shareholder value by separating Cargotec’s businesses into standalone companies. The two-year project has progressed according to our plan and is now in its final stages. The proceeds from the Transaction will boost Hiab’s ambitious growth plans through innovation and M&A. MacGregor will become a strategic asset for its new owner, who will develop and put full focus on the business, which will enable further growth and profitability improvement,” says Cargotec’s CEO Casimir Lindholm.
“MacGregor stands out due to its engineering capabilities, broad and sustainable product offering, high-quality equipment, and strong reputation. Triton looks forward to collaborating with the company and its employees to develop further this market-leading position, especially by strengthening the aftermarket platform where we see great potential. MacGregor is at the core of Triton’s investment focus to acquire market-leading companies with strong potential and a competitive edge,” adds Ilkka Tuominen, Investment Advisory Professional at Triton.
