Kone Corporation and a consortium led by Advent and Cinven, through their jointly controlled holding company Vertical Topco I S.A., have signed an agreement for the merger of Kone and TKE via a cash and share transaction. Kone and TKE will combine, creating a world-class company in the lift and escalator isector. The industry-revitalizing transaction brings together two global businesses with highly complementary geographic footprints and innovation platforms.

The Finnish lift manufacturer Kone has announced the acquisition of its German rival TK Elevator in a cash-and-share deal valuing the company at €29.4 billion. The group resulting from the merger will be almost twice the size of the current Kone Group, with over 100,000 employees in more than 100 countries worldwide and an annual turnover of around €20.5 billion.

According to initial information released by Kone, the new company is expected to be headquartered in Finland and will be led by Kone’s current CEO, the Frenchman Philippe Delorme. “This transaction, which will revitalise the sector, brings together two exceptional global companies whose geographical footprints and innovation platforms are perfectly complementary,” a statement emphasised, adding that “Kone’s presence in Asia is complemented by TKE’s in the Americas. TKE opens up new markets for Kone, creating a perfectly balanced global presence.” According to the statement announcing the deal, the consortium that owns TKE, led by the Advent and Cinven funds, will receive €5 billion and 270 million shares in the new Kone, valued at €15.2 billion. It will thus hold 33.8% of the new entity.

The deal is still subject to approval by the regulatory authorities and shareholders, and is expected to be finalised in 2027.

“This industry-revitalizing transaction – according to KONE’s press release – brings together two exceptional global businesses with highly complementary geographic footprints and innovation platforms. The combined group would have a balanced global presence, leading service and modernization capabilities, and the resources to accelerate the development of new solutions and digital services. As such it would be in a better position to meet its customers’ rising demand for safe, sustainable and data driven urban vertical transportation solutions. The combination would offer substantial value creation from realized synergies, estimated to be approximately EUR 700 million on an annual run-rate basis, benefitting customers and shareholders alike.”

Transaction highlights

• The combination of KONE and TKE would bring together two global elevator and escalator companies with complementary geographical footprints and innovation capabilities.
• TKE is a global E&E leader with a differentiated service and modernization delivery model and a highly attractive platform in the Americas. The company’s strong financial performance reflects successful execution of a comprehensive multi-year transformation.
• By bringing KONE and TKE together, customers would benefit from faster innovation, improved installation and services, and greater ability to deliver safe and sustainable modernization across an aging global elevator and escalator base.
• For employees, the combination would offer broader development opportunities across a larger, more diverse, and truly global company with strong prospects.
• The transaction is expected to create substantial value through synergies of approximately EUR 700 million in annual run-rate pre-tax cost savings, anticipated to be achieved with full P&L effect by the end of year three after completion of the transaction. Synergies are expected to be realized primarily through higher density of service networks, enhancement of combined R&D capabilities, platform optimization, procurement efficiencies and SG&A savings.
• KONE would acquire the entire issued share capital of Vertical Topco II S.A., which holds all assets of TK Elevator GmbH and its direct and indirect subsidiaries (“TKE”).
• Vertical Topco I S.A. would receive a cash consideration of EUR 5 billion and a maximum share consideration of 270 million newly issued KONE class B shares, each subject to certain adjustments. At the closing price of KONE’s class B shares on April 28, 2026, and assuming a maximum consideration of 270 million shares, the share consideration would be valued at EUR 15.2 billion and correspond to 33.8% of all issued shares and 18.3% of total votes, excluding treasury shares, in KONE following completion of the transaction.
• The total consideration would result in an enterprise value for TKE of EUR 29.4 billion, including interest-bearing net debt, based on the above assumptions. The majority of TKE’s existing interest-bearing net debt, amounting to approximately EUR 9.2 billion, would be refinanced.
• The combined group is expected to receive a solid investment grade credit rating supported by ongoing cash generation and expected synergy realization.
• KONE aims to initially maintain dividends at an approximate level of 2026 post completion. Going forward it would aim to pay a dividend of at least 50% of net income through the cycle, delivering attractive shareholder returns.
• KONE’s current President and CEO Philippe Delorme would lead the combined group, with Ilkka Hara as CFO. Antti Herlin would remain as Chairman of the Board of Directors, with an ownership representing over 50% of KONE’s voting rights, ensuring continuity and a sustained long-term strategic focus. TKE shareholders would have the right to nominate up to two members of KONE’s Board of Directors.
• Completion is subject to, among others, regulatory approvals and the approval of the relevant elements of the transaction by the Extraordinary General Meeting of KONE, which is expected to be convened in June 2026. KONE is confident that it will secure all necessary regulatory approvals in accordance with its contractual commitmentswhile preserving the strategic rationale of the combination. The parties are prepared to work constructively with regulators to ensure full compliance.Completion of the transaction is expected to occur earliest in the second quarter of 2027.
• Shareholders of KONE holding in aggregate approximately 40.3% of all outstanding shares and approximately 74.3% of the total votes (excluding treasury shares) have irrevocably undertaken, subject to certain customary conditions, to attend the Extraordinary General Meeting of KONE and vote in favour of the Board proposals related to the transaction.

Philippe Delorme, President and CEO of KONE said: “For over a century, both KONE and TKE have successfully developed their businesses, in tandem with an urbanizing world. By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success. This combination would meaningfully enhance our ability to meet customers’ growing demand for reliable and sustainable  solutions and services in a rapidly evolving environment, while creating a stronger, more diverse global team grounded in the combined expertise of both organizations. It would also accelerate our strategic shift to service and modernization, reinforcing our resilience. Together, we aim to shape the future of urban mobility to the benefit of our people, our customers and our shareholders.”

Antti Herlin, Chairman of the Board of Directors of KONE said: “This transaction reflects the Board’s clear ambition to create the strongest possible foundation for long-term value creation. We are confident that it would ultimately drive greater innovation and improved customer service, while positioning the combined group for sustainable growth.”

Uday Yadav, CEO of TKE said: “Four years ago, we set out to build something genuinely great – a business defined by operational excellence, customer trust, and the conviction that extraordinary people, given the right tools and leadership, will always outperform. What 50,000 colleagues have delivered with passion, pride and capability speaks for itself. As peers, we have deep respect for what KONE has built over more than a century. Together we will bring the very best of both companies to our customers, our people, and the cities we serve. The best of our story lies ahead.”

Bruno Schick, Co-Managing Partner at Cinven said:”TKE’s journey has been an extraordinary one. Together with TKE’s management team and employees, we are proud to have actively supported its carve out and transformation into the world-class strategic platform it is today, driving excellence in services and innovation while delivering significant value for all stakeholders. The planned combination with KONE provides a unique opportunity to accelerate the successful journey of innovation in urban mobility. As a shareholder of the planned combined company, we are delighted to see the business so well positioned for its next phase of growth.” 

Ranjan Sen, Managing Partner at Advent said: “Since acquiring TKE in 2020, we partnered closely with management and employees to navigate a complex carve-out and build a highly resilient, focused business. Significant investment in technology, innovation, and product development has enabled TKE to emerge as a leader in urban mobility. Moving forward, we see compelling industrial logic in combining two highly complementary businesses and creating a world-class company in the elevator and escalator industry. Our continued ownership in the combined group reflects our conviction in its long-term potential, and we look forward to supporting the management team on this next chapter.”

The news has also been shared on social media by the companies themselves.

Kone wrote in a Linkedin post: ‘Today we announced our planned combination with TK Elevator to build a world-class company in the elevator and escalator industry together. “Our two companies are truly complementary to each other. When we unite our amazing teams, our innovation capabilities, and our global footprint, we become much more than just 1+1,” says our President and CEO Philippe Delorme’.

Also TKE pubblished  a Linkedin post writing: “TK Elevator and KONE, two global leaders in vertical transportation and urban mobility solutions, today announce plans for a transformative combination, creating one of the world’s leading elevator and escalator companies. The planned union of two companies with long and distinguished histories, both at the top of their games, brings together complementary geographies, world-class service platforms and proven transformation capability”.