Kone Close to $34 Billion Acquisition of TK Elevator, Bloomberg Reports

• The deal values TK Elevator at about 29 billion euros ($33.97 billion) including debt
• TK Elevator is currently owned by private equity firms Advent and Cinven
• The acquisition would be structured as a cash-and-stock transaction between the two elevator industry rivals

Summary: Kone Close to $34 Billion Acquisition of TK Elevator

Key Transaction Details:

Finnish elevator and escalator manufacturer Kone is finalizing a cash-and-stock deal to acquire German competitor TK Elevator, according to Bloomberg sources. The transaction values TK Elevator at approximately €29 billion ($33.97 billion) including debt, and an announcement could come as early as Wednesday, April 29.

Parties Involved:

• Acquirer: Kone (Finnish elevator/escalator manufacturer)
• Target: TK Elevator (German rival)
• Current Owners: Private equity firms Advent and Cinven

Market Implications:

This potential mega-deal would create a dominant force in the global elevator and escalator industry, consolidating two major European players. The transaction represents one of the largest M&A deals in the industrial equipment sector and signals continued consolidation in the vertical transportation market.

The deal structure combining cash and stock suggests Kone is leveraging both its balance sheet and equity to finance this substantial acquisition. For private equity owners Advent and Cinven, this represents an exit opportunity from their TK Elevator investment at a significant valuation.

Industry Context:

The elevator and escalator industry serves critical infrastructure needs in construction and building maintenance globally. Consolidation at this scale could have implications for pricing power, market competition, and service capabilities across Europe and potentially worldwide.

Note: Reuters could not immediately verify the Bloomberg report independently, so the transaction remains unconfirmed pending official announcement.