# Cargotec

Cargotec Oyj (trading internationally as Cargotec Corporation) is a Finnish company that makes cargo handling machinery for ships, ports, terminals and local distribution.
Cargotec was formed in June 2005 when Kone Corporation was split into two companies to be listed: Cargotec and new Kone. After the split, Kone Corporation's container handling (Kalmar Global), load handling (HIAB) and marine cargo handling (MacGregor) business units formed Cargotec. However, the businesses within Cargotec have much longer histories and have been formed through a series of mergers and acquisitions over several decades.
At the end of 2023, Cargotec had approximately 11,400 personnel working in over 100 countries.
Cargotec's major shareholders are the heirs of Pekka Herlin. Current (since 27 April 2022) chairman of the Cargotec's board of directors is Jaakko Eskola, replacing long-term chair Ilkka Herlin in 2022.
In December 2022, Cargotec’s CEO Mika Vehviläinen informed Cargotec’s Board of Directors of his intention to retire from Cargotec during 2023. The Board initiated a search for a successor and, in February 2023, announced that it has appointed Casimir Lindholm (M.Sc. (Econ.), MBA), b. 1971, as Cargotec’s new President and CEO as of 1 April 2023.
In April 2023, Cargotec announced that the company board of directors had decided to investigate and start a process to potentially separate the businesses areas Kalmar and Hiab into two standalone companies.
In February 2024, Cargotec published a release stating that the company board of directors had approved a demerger plan concerning the separation of Kalmar into a new listed company.
The demerger is subject to approval by the annual general meeting (AGM) of Cargotec, held on 30 May 2024. The AGM resolved on the partial demerger of Cargotec in accordance with the demerger plan. As part of the demerger resolution and conditional upon the completion of the demerger, the AGM resolved on the incorporation of Kalmar Corporation and approval of its articles of association. The AGM also elected Kalmar's board of directors, chair person and remuneration of the board, auditor and the authorised sustainability auditor for Kalmar, and resolved on the establishment of Kalmar's shareholders’ nomination board of and adopted its’ charter. The meeting also approved the remuneration policy for governing bodies of Kalmar and, as part of the demerger resolution and conditional upon the completion of the demerger, resolved on a decrease of Cargotec's share capital and on the dissolution of share premium reserve of Cargotec.

## History

Cargotec was formed in June 2005 when Kone Corporation was split into two companies to be listed: Cargotec and new Kone. After the split, Kone Corporation's marine cargo handling (MacGregor), container handling (Kalmar Industries AB) and load handling (HIAB and Moffett, the latter being based in Ireland and acquired in 2000) business units formed Cargotec. However, the businesses within Cargotec have much longer histories and they have been formed through a series of mergers and acquisitions during several decades.
Cargotec's Kalmar business area started to take shape in 1997 when Partek Corporation acquired the Finnish state-owned Sisu Ltd including its terminal tractor business. During the same year, Partek acquired a major shareholding in Kalmar Industries Ltd, a container handling equipment producer.
The foundations of Cargotec's Hiab business area were laid in 1977 when Partek Corporation bought Multilift Group. In 1985, Partek acquired Hydrauliska Industrier Ltd (HIAB) and Jonsered forestry cranes. A couple of years later Partek strengthened its forestry crane expertise by acquiring that particular business line from Fiskars. Several business acquisitions in 2000 enforced the load handling business. In 2004, the name HIAB was taken into use for the whole load handling business in Cargotec.
MacGregor originates from England where it started to serve shipping companies and shipyards in 1937. The marine cargo business of the company in a broader meaning started in 1983 when MacGregor merged with the Finnish Navire. In 1993, Incentive acquired MacGregor-Navire and merged it with Hägglunds Marine. In 1998, the majority of MacGregor was sold to Industri Kapital. In 2005, Cargotec bought MacGregor International AB, the global marine cargo flow solutions provider, to strengthen the company's cargo handling offering. Several mergers and acquisitions have taken place since to further strengthen MacGregor.
Around 2010, Cargotec prepared a separation and possible listing of MacGregor in Singapore. Due to market conditions and focusing on integration of major acquisitions, Cargotec's Board of Directors decided in October 2013 to delay the listing.
In 2011, Cargotec acquired Navis, a US based terminal operator systems provider from Zebra Technologies for $190 million. Cargotec sold Navis in 2021 to technology investment company Accel-KKR for €380 million.
On 1 October 2020, Cargotec and Konecranes announced that they have agreed to a merger. The deal will require two thirds of the shareholders and is expected to complete in the fourth quarter of 2021. The merger was cancelled in March 2022 after the UK Competition & Markets Authority blocked the merger between the companies.
In August 2023, it was announced Cargotec's Kalmar division had acquired the product and intellectual property rights for Lonestar electric terminal tractors in the USA. Lonestar Speciality Vehicles, based in Texarkana, will act as Kalmar's contract manufacturing partner for the products. On 27 April 2023, Cargotec announced that the company board of directors had decided to investigate and start a process to potentially separate the businesses areas Kalmar and Hiab into two standalone companies.
On 1 February 2024, Cargotec published a release stating that the company board of directors had approved a demerger plan concerning the separation of Kalmar into a new listed company.
In May 2024, Cargotec announced new long term financial targets for its Hiab business area, and that Cargotec’s board of directors is planning to propose to Cargotec’s AGM that the company’s name would be changed from Cargotec to Hiab, if the planned demerger of Kalmar is completed and a solution to MacGregor is found. In that case Casimir Lindholm, the current President and CEO of Cargotec, would step down as President and CEO.
Also in May 2024, Cargotec's annual general meeting resolved on the partial demerger of Cargotec in accordance with the demerger plan. As part of the demerger resolution and conditional upon the completion of the demerger, the AGM resolved on the incorporation of Kalmar Corporation and approval of its articles of association.

## Ownership

The major shareholders of Cargotec are Pekka Herlin's heirs Ilkka Herlin (Wipunen Varainhallinta Oy), Niklas Herlin's estate (Mariatorp Oy) and Ilona Herlin (since 31 August 2015 Pivosto Oy) each managing over 22% of votes.