In early October of last year, Konecranes announced that it had entered into an agreement to acquire the Indian crane company WMI Cranes Ltd. (“WMI”). As of August, 11, 2011, Konecranes has now completed the second phase of the acquisition whereby its ownership in WMI has increased from 51 percent to 100 percent.
WMI Cranes, based in Kolkata, engineers overhead cranes for a range of sectors, including chemical, steel, fertilizer, paper, cement and stock yards. It offers bulk handling equipment such as stackers and spreaders for use in ports, as well as parts and services.
With manufacturing facilities in Mumbai and Jejuri, the company has installed 4,000 cranes in India. Its net sales last year exceeded €30m.
Konecranes acquired WMI’s shares in two phases. In the first phase in February, Konecranes acquired 51 percent of the shares for INR 1,690 million (approx. EUR 28 million). In the second phase Konecranes purchased the remaining 49 percent of the shares. The total price for 100 percent of the shares in WMI amounted to INR 3,578 million (approx. EUR 57 million). The purchase price includes approx. EUR 2 million investment in WMI’s equity according to the purchase agreement.
The acquisition marks an important step in strengthening Konecranes’ position in the growing Indian crane market. The acquisition is expected to have a neutral impact on the EPS in 2011.