A divided path to growth
Cargotec's board has approved a plan to split off Kalmar as a standalone company, pending approval at the AGM on 30 May 2024, with completion targeted for 30 June 2024.
Supported by major shareholders, the move is intended to allow both Cargotec and Kalmar to pursue independent growth. Kalmar’s focus will be on container handling technology, while Cargotec's Hiab business unit will continue to grow in the on-road load segment.
The separation is expected to increase agility and focus for both companies, potentially leading to faster growth through more targeted capital allocation. Financially, Cargotec reported a 12% increase in sales to EUR 4,569 million for 2023, with operating profit up 62% to EUR 513 million, and a record operational cash flow of EUR 544 million.
Cargotec’s shareholders are to receive shares in Kalmar in a 1:1 ratio, with financial arrangements in place to support both companies’ post-demerger. The plan aims for better governance, clarity, and valuation of the separated entities. Detailed information will be available in the demerger prospectus expected in May 2024. (pb)