KONE Corporation has agreed to combine with TK Elevator in a cash-and-share transaction that values TKE at an enterprise value of approximately €29.4 billion, creating one of the world’s largest elevator and escalator groups.
Under the agreement, KONE will acquire TKE from a consortium led by Advent International and Cinven for €5 billion in cash and up to 270 million newly issued KONE class B shares, valued at roughly €15.2 billion based on KONE’s latest closing price. KONE will also refinance most of TKE’s approximately €9.2 billion of existing net debt.
The combined company would generate approximately €20.5 billion in annual revenue and more than €2.7 billion in adjusted EBIT based on the companies’ latest financial years, with around 3.2 million units under maintenance globally. About 65% of revenue would come from recurring service and modernization activities.
KONE said the transaction would create a more balanced global business by combining its strength in Asia with TKE’s strong position in the Americas. The company expects the deal to generate approximately €700 million in annual pre-tax cost synergies by the end of the third year following completion, driven by procurement efficiencies, denser service networks, platform optimization, and lower overhead costs.
KONE President and CEO Philippe Delorme will lead the combined group, while chairman Antti Herlin will remain in his role and retain control of more than 50% of KONE’s voting rights following the transaction.
The deal has already secured support from shareholders representing around 74.3% of KONE’s voting rights. Completion remains subject to shareholder approval and regulatory clearances in multiple jurisdictions, with closing expected no earlier than the second quarter of 2027.
Given the size of the combination and the parties’ significant positions in elevator maintenance and modernization across multiple jurisdictions, the transaction is likely to attract close antitrust scrutiny globally.
