Industrial crane manufacturer Konecranes will buy into Kito Corporation as part of a strategic alliance.
Finland-based Konecranes will purchase 22% (about US$36 million) of the Japanese chain hoist and industrial lifting equipment manufacturer from international private equity firm The Carlyle Group. Under the alliance agreement, Konecranes will offer Kito manual products while Kito will sell wire rope hoists made by Konecranes.
Further possibilities for distribution, manufacturing under licence and procurement will be investigated, Konecranes said. The hoist distribution business of Konecranes' Japanese joint venture, MHS Konecranes Co. Ltd, will be transferred to Kito "to create a strong player in the Japanese hoist market," Konecranes said.
"This alliance will strengthen both companies on the global crane and hoist market and support further profitable growth and market leadership. The alliance will enable both companies to expand their product offering as well as to improve competitiveness and customer service," said Pekka Lundmark, Konecranes president and CEO.
"We are very pleased and hopeful with this alliance, which is based on mutual respect and equal partnership. Through this alliance, we together with Konecranes will enhance our market leadership and accelerate our profitable growth by mutual complements in product offering, manufacturing, sales network and customer service." said Yoshio Kito, Kito president and CEO.