en.Wedoany.com Reported - Finnish material handling equipment manufacturer Konecranes has announced an agreement to acquire a 70% stake in Mitsubishi Electric FA Industrial Products (MFK), a Japanese subsidiary of Mitsubishi Electric Corporation.
Through this transaction, Konecranes will gain a controlling stake in MFK and thereby enter the Japanese market. MFK holds a strong position in wire rope hoists, gear motors, and related services. The financial terms of the deal were not disclosed.
The agreement is subject to regulatory approvals and the satisfaction of closing conditions. Upon completion of the transaction, Mitsubishi Electric will retain a 30% stake in MFK. The deal is expected to close within the fiscal year ending March 2027, at which point Konecranes will consolidate MFK as a subsidiary and is expected to rename it.
MFK has been operating in the Japanese market since 1944, primarily supplying hoists, gear motors, hoist components, and maintenance services. The company employs approximately 400 people, has 15 sales offices across 9 regions in Japan, and generates annual sales of around €90 million (approximately $102 million). The majority of its revenue comes from domestic Japanese customers, with the remainder mainly from other Asian markets.
Konecranes stated that MFK's product range complements its existing portfolio, creating new business opportunities in the Japanese market. Previously, Konecranes had limited local operations in Japan. Marko Tulokas, President and CEO of Konecranes, expressed great satisfaction with the planned acquisition, noting that MFK's technology, products, and personnel enhance the company's global footprint, allowing it to have a more significant presence in the attractive Japanese market under a world-leading, well-known brand. He also pointed out that MFK will benefit from being part of a global leader and that this acquisition aligns with Konecranes' long-term growth priorities.
Mitsubishi Electric stated that this partnership is a means to enhance its domestic competitiveness and promote international expansion by leveraging Konecranes' technology and network. Takayuki Tsuzuki, Senior Executive Officer and President of the Factory Automation Systems Group at Mitsubishi Electric Corporation, expressed confidence that transferring advanced and proven technology to Konecranes, a leader in hoists and gear motors, will contribute to the mutual growth of both parties and the development of this business.
