A €29.4 billion ($34.4 billion) cash-and-stock agreement to purchase TK Elevator was announced Tuesday by Finnish manufacturer Kone, which said the combined entity would rank as the world's top elevator and escalator business.
Under the deal, the Advent and Cinven-controlled holding company will receive €5 billion in cash. The rest of the payment will be up to 270 million new Kone class B shares, valued at about €15.2 billion based on Kone's share price on April 28, 2026. The agreement also covers refinancing most of TK Elevator's existing debt, which totals about €9.2 billion.
On a combined basis, the two companies would generate about €20.5 billion in annual sales and employ more than 100,000 people in over 100 countries, with the merged entity headquartered in Finland. About 65% of combined revenue would come from service and modernization contracts. Cost synergies of roughly €700 million per year, Kone said, are expected to be realized within three years of the deal closing.
Kone CEO Philippe Delorme, in a prepared statement, said: "By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success." Delorme will lead the combined group, with Ilkka Hara serving as CFO. Control of Kone will remain with Antti Herlin, the company's principal shareholder and board chairman, who is set to hold more than half of all voting rights once the deal is complete.
Spun out of Thyssenkrupp in 2020, TK Elevator was taken private in a roughly €17.2 billion buyout by Advent and Cinven, according to Bloomberg . The deal ranks among Europe's largest private equity exits in recent years. That 2020 sale also attracted Kone, which had joined forces with CVC Capital Partners in an unsuccessful competing offer.
TK Elevator's existing business in the Americas, a region where Kone has historically been less active, would extend the Finnish company's geographic reach. Kone currently has a larger footprint in Asia. The combined group would maintain about 3.2 million elevator and escalator units under maintenance.
Shareholders accounting for roughly 40.3% of Kone's outstanding shares and approximately 74.3% of its total voting power have pledged their support for the deal ahead of an extraordinary general meeting slated for June 2026, the company said. Kone said closing cannot happen before the second quarter of 2027 and will require sign-off from regulators across several jurisdictions.
The proposed combination is expected to face antitrust scrutiny. Rival Schindler of Switzerland has signaled its intention to raise objections with antitrust regulators if the merger moves forward, according to CNBC . Delorme said Kone has prepared thoroughly for the regulatory process and does not expect approvals to undermine what the company hopes to achieve through the combination.
Kone has engaged Bank of America as its financial advisor for the transaction, while TK Elevator is being advised by Goldman Sachs.
