Valtra tractor line to AGCO

KONE has on 10 September 2003 signed an agreement for the sale of its tractor business Valtra, including the subsidiary Sisu Diesel, to U.S.-based AGCO Corporation. In accordance with the agreement, the purchase price is EUR 600 million. The transaction is subject to relevant competition authority approval.

ACGO is a leading global designer, manufacturer and distributor of agricultural equipment and related replacement parts. In 2002, AGCO had net sales of USD 2,923 million, of which tractors represented 58 percent.

In 2002, Valtra net sales totaled EUR 761.7 million with an operating margin of 5.9 percent, return on assets of 15 percent and return on capital employed in excess of 25 percent.

AGCO has stated its intent to continue to invest in the profitable growth of Valtra. The Valtra brand and business will be maintained in its current manufacturing locations along with its distribution network.

In June KONE disclosed its decision to concentrate on the elevator, escalator and automatic door service business, and on container and load handling, while seeking new owners for the tractor and forest machine businesses. When concluded, the divestments will give KONE the opportunity to substantially decrease gearing and net debt, which improves the possibilities to develop and grow KONE Elevators & Escalators and KONE Materials Handling.