Cargotec sells MacGregor business to funds managed by Triton for an enterprise value of EUR 480 million to support Hiab’s future growth, reports Cargotec.
Cargotec Corporation (“Cargotec”) has today signed an agreement to sell its MacGregor business area (“MacGregor”) to funds managed by Triton (“Triton”), for an enterprise value of EUR 480 million (“the Transaction”) to support Hiab’s future growth.
Agreement
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 would 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 being the current Cargotec. Cargotec currently estimates that these changes to transform into a standalone Hiab could take place on 1 April 2025. Current Cargotec CFO Mikko Puolakka would continue as CFO of the standalone Hiab.
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 of 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 2024 results. The loss will be recorded as a goodwill impairment 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 14 November 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 sales process of the business as MacGregor’s performance and market conditions had clearly improved.
Due to the signing of the agreement to sell MacGregor, Cargotec will report the MacGregor business area as a part of discontinued operations from the fourth quarter 2024 onwards. Cargotec will publish its reclassified financial information before the publication of its financial statements review for 2024.
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Source: Cargotec
