Kone agreed to acquire TK Elevator from a consortium led by private equity sponsors Advent and Cinven. The deal represents one of the largest exits of a private equity‑owned industrial asset in Europe and is structured as a platform‑level combination between two of the world’s four largest elevator and escalator manufacturers. The combined group, under the Kone corporate framework, is projected to achieve around EUR 20.5 billion in annual sales, with roughly 65% of revenue generated by the service and modernization segments and more than EUR 2.7 billion in adjusted EBIT before synergies, alongside a combined installed base of approximately 3.2 million units under maintenance. Kone estimates annual run‑rate synergies of around EUR 700 million, primarily driven by denser service networks, joint R&D initiatives, platform consolidation, procurement efficiencies, and reductions in general and administrative costs. The transaction is expected to be accretive to Kone’s earnings per share in the first full year following completion, excluding one‑off integration and transaction expenses, with an accelerating margin improvement profile in subsequent years.

TKE (THYSSENKRUPP ELEVATOR), which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN premium to the average currently observed in the Industry & Manufacturing sector (11.0x).

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