KONE to Acquire TK Elevator

KONE Corporation said in an inside-information release on April 29, 2026, that it will acquire TK Elevator in a cash-and-stock transaction. The deal creates the world's largest elevator maker, resets KONE’s long-term targets, and aims for integration synergies and earnings-per-share (EPS) accretion.

Deal Terms, Financing, and Governance

KONE signed a sale-and-purchase agreement to acquire the entire issued share capital of Vertical Topco II S.A., the holding company for TK Elevator, from a private-equity consortium led by Advent and Cinven. The transaction values the business at $34.4 billion enterprise value, including TK Elevator’s interest-bearing net debt, which will be largely refinanced. The consideration includes a cash element and the issuance of 270 million new KONE class B shares.

Financing commitments have been secured from Bank of America and BNP Paribas. KONE plans to fund the transaction with a mix of balance-sheet cash and new debt. The newly issued class B shares will represent 33.8% of KONE’s issued share capital and about 18.3% of voting rights after closing. Shareholders holding 74.3% of voting rights and 40.3% of shares have pledged support for the deal.

Antti Herlin will retain majority voting control after closing. Vertical Topco I S.A. shares will be subject to a 180-day lock-up, and a secondary block sale of KONE shares to Herlin will be executed at a closing-period volume-weighted average price.

Strategic Financial Impact and Synergies

The combined company will be the largest elevator and escalator maker globally, with illustrative pro forma sales weighted toward service and modernization, which account for about 65% of revenue. The platform will support roughly 3.2 million units under maintenance and employ more than 100,000 people across over 100 countries.

KONE said the transaction resets its long-term targets and aims to accelerate its adjusted EBIT margin beyond the standalone 16% objective. Management expects the deal to be EPS accretive in the first full year after closing, adjusted for purchase-price accounting and one-off items.

Run-rate synergies are expected by the third year post-close, driven by network density, procurement efficiencies, and platform consolidation. One-off integration costs are projected at roughly one to 1.2 times the annual run-rate, spread over about two years.

Philippe Delorme, KONE president and chief executive, said, "By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success."

Approvals and Timing

The sale-and-purchase agreement was disclosed in KONE’s inside-information release on April 29, 2026. The company has scheduled an Extraordinary General Meeting in June 2026 to seek shareholder authorization for the directed share issue, requiring a two-thirds majority, and the election of two Vertical Topco-nominated directors, requiring a simple majority.

The transaction remains subject to regulatory approvals in multiple jurisdictions. KONE expects the earliest possible closing in the second quarter of 2027, reflecting a 12–18 month review period. KONE and TK Elevator will continue to operate independently until closing.

A competitor has signaled intent to challenge the transaction before competition authorities, which could affect the timing and review process.