KONE and TKE to Combine, Creating a World-Class Elevator and Escalator Company

KONE Corporation and a consortium led by Advent and Cinven have, through their jointly controlled holding company Vertical Topco I S.A., entered into an agreement to merge KONE and TKE in a cash and stock transaction.

The combination would deliver significant value creation from synergies estimated at approximately EUR 700 million annually, benefiting both customers and shareholders.

The synergies are expected to be realized primarily through denser coverage of service networks, the strengthening of combined research and development functions, platform optimization, procurement efficiencies, and savings in sales, administrative, and general expenses.

Based on example data from the last fiscal year, the combined group’s annual revenue would be approximately €20.5 billion, of which about 65% would come from maintenance and modernization services. Adjusted operating profit, excluding synergy benefits, would exceed €2.7 billion, and the number of devices under maintenance would be approximately 3.2 million.

The completion of the transaction is subject to, among other things, regulatory approvals and the approval of KONE’s Extraordinary General Meeting for the material terms of the transaction. The Extraordinary General Meeting is scheduled to be convened in June 2026.

KONE’s current CEO, Philippe Delorme, would lead the combined group, and Ilkka Hara would serve as CFO. Antti Herlin would continue as Chairman of the Board, with his ownership stake representing over 50% of KONE’s voting rights, ensuring continuity and a long-term strategic focus. TKE’s shareholders would have the right to appoint up to two members to KONE’s Board of Directors.

“This combination would significantly enhance our ability to meet customers’ growing demand for reliable and sustainable solutions and services in a rapidly changing environment, while creating a stronger, more diverse global team based on the combined expertise of both organizations. It would also accelerate our strategic transition to services and modernization and strengthen our sustainability,” KONE CEO Philippe Delorme said.