Cargotec’s board of directors has initiated a study process to separate its core businesses, Kalmar and Hiab, into two separate companies. This initiative was taken after the failed merger with Konecranes. The company has indicated that its intention is “to spin off Kalmar as a newly public company through a partial spin-off from Cargotec.” The goods-handling machinery company has indicated that planning for a possible partial spin-off is expected in 2023 and Kalmar’s separate listing on Nasdaq Helsinki will occur, if carried out, in 2024. Cargotec’s chairman of the board of directors, Jaakko Eskola, has stated that the separation of Kalmar, which focus more on the port equipment business, and Hiab, which focuses more on onshore operations, “would be the logical next step towards growth”. profitable and self-sustaining.”

“Separating Kalmar and Hiab will be the logical next step towards growth”
Jackko School Chairman of the Cargotec Board of Directors

Cargotec Chairman and CEO Casimir Lindholm has stated that Kalmar and Hiab “serve different customers and have cross-selling synergies”. In the case of MacGregor, which is currently one of Cargotec’s three business areas, “it will not be part of the company’s portfolio for the foreseeable future,” the company has indicated. “Therefore, in parallel, Cargotec’s focus will continue to find solutions for MacGregor until 2024,” he explained. If the planned actions are completed, there will be three separate businesses: Kalmar, Hiab and MacGregor. “Some of the planned spin-offs,” he added, “would be a logical next step in Cargotec’s previously announced goal of increasing the independence of its business.”

Cargotec’s board of directors believes that the spin-off will improve Kalmar and Hiab’s results

Cargotec has indicated that, according to a preliminary assessment of the board of directors, “the planned partial separation is expected to improve Kalmar and Hiab’s business results thanks to greater management agility, assertiveness and focus”. In addition, “as two independent businesses, the company can achieve faster organic and inorganic growth thanks to a more tailored strategy of capital allocation and flexible access to external capital.” Likewise, the management body believes the transaction “will increase the attractiveness of the company and facilitate fair business judgments.” Together with this, if done, “it will improve governance and simplify the structure of separate entities and provide greater transparency”, according to estimates from Cargotec.

KALMAR AND HIAB ACHIEVE DOUBLE DIGIT SALES GROWTH THROUGH MARCH
Sales of Kalmar and Hiab in the first quarter of this year have grown by double digits compared to the same period in 2022. In the case of Kalmar, turnover has reached 485 million euros, 31% more than between January and March this year. last financial year, while Hiab has increased its sales by 27%, up to 432 million euros, according to data from Cargotec. These results have been obtained despite a decrease in the number of orders compared to the first three months of the previous year. Kalmar has received a total of 471 orders, 6% less, while Hiab stands at 380, 21% below the first quarter of 2021.