KONE Corporation and TK Elevator merge

In a transformative move within the elevator and escalator industry, Skadden is providing legal counsel to KONE Corporation as it finalises its agreement to merge with TK Elevator (TKE), a portfolio company operated by a consortium that includes Advent International and Cinven. This landmark transaction, valued at €29.4 billion, is anticipated to reshape market dynamics by uniting two leading global companies that boast complementary geographical footprints and innovation capabilities.

When considering the financial implications, the combined entity would have recorded annual sales of approximately EUR 20.5 billion for the last fiscal year, with an impressive 65% of these sales derived from service and modernisation sectors. The merger is projected to generate over EUR 2.7 billion in adjusted EBIT, excluding synergies, while overseeing maintenance for around 3.2 million units.

However, the completion of this transaction hinges on several conditions, including the necessary regulatory approvals and the subsequent endorsement of critical elements by KONE's Extraordinary General Meeting, which is set to convene in June 2026. The earliest anticipated completion date for this substantial merger is during the second quarter of 2027.

The Skadden team working on this significant deal is comprised of various partners, including Corporate partners Sandro de Bernardini, Sarah Knapp, and Lorenzo Corte, alongside Antitrust/Competition partners Giorgio Motta from Brussels, Kenneth Schwartz, and Michael Sheerin from New York. Other key figures in this process are Finance partners Pete Coulton and Zoe Cooper Sutton, as well as White Collar Defense and Investigations partner Ryan Junck. Furthermore, Tax partner Jisun Choi and Private Equity partner Jan Bauer, along with Tax partner Johannes Frey, are also contributing to the merger discussions, all mainly based in London.