Cargotec to sell cargo business to Triton for over $500 mln
Nov 14 (Reuters) -Finnish engineering firm Cargotec Corp CGCBV.HE said on Thursday it would sell its cargo handler business MacGregor to European private equity firm Triton in a deal valued at 480 million euros ($506 million), including debt.
The deal would be pursued to help its on-road load handling business, Hiab, operate as a standalone business, Cargotec said, adding that its CEO Casimir Lindholm would step down and be replaced by Hiab President Scott Phillips as a part of the arrangement.
Hiab would subsequently be the only business remaining under Cargotec as a result of the deal, which would also see Cargotec recording a 200 million euro tax-exempt loss in the fourth quarter. Cargotec estimates Hiab's comparable operating profit margin in 2024 to be above 14.0%.
"The agreement to sell MacGregor represents the last major milestone in our project to unlock shareholder value by separating Cargotec's businesses into standalone companies," Cargotec CEO Casimir Lindholm said.
Cargotec also intends to change its name to Hiab following the transaction's close, which is expected by July 1.
MacGregor employs about 1,800 people across 30 countries and provides cargo and load handling solutions and services designed to perform at sea for the maritime transportation and offshore industries.
($1 = 0.9479 euros)
Reporting by Rhea Rose Abraham in Bengaluru; Editing by Maju Samuel
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