With a €29.4 billion deal, Finnish Kone takes over the German TK Elevator (Tke), former elevator division of Thyssenkrupp, creating a global giant set to change the sector’s balance. This move marks not only one of the largest industrial acquisitions in Europe in recent years but also – as highlighted, among others, by Bloomberg – the largest corporate deal ever made in Finland’s history. “This transaction, which will revitalize the sector, unites two exceptional global companies whose geographic presences and innovation platforms are perfectly complementary,” reads the joint statement from the two companies.
FINANCIAL DETAILS: CASH, SHARES, AND NEW BALANCES
Specifically, the acquisition involves a payment of €5 billion in cash and the issuance of 270 million shares of the new Kone, valued at about €15.2 billion. The current owners of Tke – the private equity consortium led by Advent and Cinven – will thus hold a 33.8% stake in the combined group.
The deal represents one of the largest divestments ever made by private equity in Europe, with Advent and Cinven monetizing their investment in Tke through a major sale. Not surprisingly, Bloomberg emphasizes how the acquisition essentially “doubles” Kone’s industrial value, projecting it to the top of the global sector ahead of competitors like Otis and Schindler.
The two companies estimate annual synergies of about €700 million, mainly generated by economies of scale, integration of maintenance networks, and optimization of industrial activities.
A GLOBAL LEADER IS BORN: SIZE AND GEOGRAPHIC PRESENCE
From an industrial perspective, the new group will be almost twice the size of the current Kone. The new entity will have over 100,000 employees spread across more than 100 countries, with a pro forma annual revenue of about €20.5 billion.
The headquarters will remain in Finland, and leadership will be entrusted to Kone’s current CEO, Philippe Delorme (pictured). The group will retain the Kone brand while continuing to use local brands in different markets.
Geographically, the industrial logic is clear: Kone is strong in Asia, while Tke has a consolidated presence in the Americas, particularly in the United States. The integration thus creates a balanced global platform, with full coverage of the main world markets.
WHAT KONE AND TKE DO: THE “PEOPLE FLOW” BUSINESS
Kone is one of the world leaders in elevators and escalators, with a business model covering the entire lifecycle of buildings. The company develops, installs, and maintains systems, as well as offering modernization services for existing equipment.
In 2024, the Finnish group recorded revenues of about €11.1 billion, with an operating profit of €1.249 billion and a margin of 11.3%. The most stable and profitable business component is services and maintenance, which grows thanks to an installed base of over 1.7 million systems worldwide.
Kone employs more than 60,000 people and operates in about 70 countries, serving over 600,000 customers and transporting about 2 billion people daily.
TK Elevator, for its part, is one of the main global urban mobility operators, with activities ranging from production to maintenance of elevators, escalators, and horizontal transportation systems. Formerly a division of Thyssenkrupp, it was acquired in 2020 by a consortium led by Advent and Cinven. TK Elevator has about 50,000 employees, operates in over 100 countries with a network of more than 1,000 locations, and reports revenues around €8.5 billion.
KONE’S ACCOUNTS: MODERATE GROWTH AND STRONG PROFITABILITY
The 2024 accounts show a financially healthy company, albeit with differentiated dynamics by segment. Revenues grew by 1.3% to €11.1 billion, while net profit reached €961 million.
Particularly notable is the contribution of services, which recorded growth of 9.5%, offsetting a 7.1% decline in new installations, especially in China. Modernization also marked a +10.1%, confirming the progressive shift of the business towards recurring and higher-margin activities.
The group presents a solid financial position, with operating cash flow of €1.589 billion and a negative net debt (thus net cash) of about €831 million.
SHAREHOLDING: CONTROL REMAINS WITH THE HERLIN FAMILY
Despite the scale of the deal, control of Kone will remain firmly in the hands of the Herlin family. According to reports also by Bloomberg, the main shareholder Antti Herlin will continue to hold over 50% of the voting rights in the new entity.
This is a key element for the group’s governance, ensuring strategic continuity even after the entry of the former Tke owners’ funds with a significant but non-controlling stake.
INDUSTRIAL IMPLICATIONS: SCALE, SERVICES, AND PRESSURE ON RIVALS
From an industrial standpoint, the deal decisively strengthens Kone’s position in the most profitable sector segments, particularly maintenance and modernization. As highlighted by some analysts, the deal allows increasing the density of the service network and improving margins compared to competitors.
At the same time, the new entity becomes the world’s largest elevator manufacturer, surpassing groups like Otis and Schindler and increasing competitive pressure across the sector.
However, risks remain. The deal must obtain antitrust approval, a process that could take up to 18 months and may involve potential asset divestitures.
A €29 billion industrial bet that can reshape the sector, but whose success will depend on the ability to integrate Tke and realize the promised synergies.
