Cargotec's Strategic Move: Selling MacGregor for Hiab's Future Growth

Cargotec Corporation, a global leader in cargo handling solutions, has recently announced a significant strategic move by selling its MacGregor business area to funds managed by Triton for an enterprise value of EUR 480 million. This transaction aims to support the future growth of Hiab, Cargotec's other core business area, and aligns with the company's long-term strategic objectives.

The sale of MacGregor, a leading provider of sustainable maritime cargo and load handling solutions, is a testament to Cargotec's commitment to focusing on its core businesses and driving growth through strategic investments. The proceeds from the sale will be primarily allocated to support Hiab's future growth plans, enabling it to invest in innovation and mergers & acquisitions (M&A) opportunities.

Cargotec's Board of Directors had earlier decided that MacGregor would not be part of the company's portfolio in the future. However, the improved performance of MacGregor and favorable market conditions led to a change in the timing of the divestment. The settlement of a dispute related to a monopile installation vessel project in May 2024 further facilitated the sale process.

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. Cargotec estimates that the total costs to separate MacGregor will be approximately EUR 25 million, recorded in items affecting comparability as a part of discontinued operations. Additionally, Cargotec expects to record a tax-exempt loss of approximately EUR 200 million on the Transaction in the fourth quarter 2024 results, which will be recorded as a goodwill impairment in items affecting comparability.

The sale of MacGregor is a significant step in Cargotec's transformation project, which aims to separate its core businesses into standalone companies. The proceeds from the sale will enable Hiab to pursue its ambitious growth plans, focusing on innovation and strategic acquisitions. This transaction is expected to generate synergies and cost savings for Cargotec, allowing Hiab to focus on its core business and growth opportunities.

Cargotec's strategic move to sell MacGregor aligns with its long-term financial targets, including annual sales growth of over 7% and a return on capital employed over 25%. The company's commitment to sustainability and innovation is evident in its strategy to grow in core and adjacent businesses, solve customer challenges in climate change and sustainability, and invest in industry innovation and transformation.

In conclusion, Cargotec's sale of the MacGregor business area to funds managed by Triton for an enterprise value of EUR 480 million is a strategic move that supports Hiab's future growth and aligns with the company's long-term objectives. The transaction enables Cargotec to focus on its core businesses and drive growth through strategic investments, ultimately benefiting shareholders and stakeholders alike.