Kone to acquire PE-backed TK Elevator in $34bn deal

July 2026 | DEALFRONT | PRIVATE EQUITY & VENTURE CAPITAL

Financier Worldwide Magazine

July 2026 Issue

Finnish lift manufacturer Kone has agreed to acquire its German rival TK Elevator (TKE) in a cash and share deal worth $34.4bn, a transaction that will create the world’s largest elevator company, overtaking rivals such as US-based Otis and Switzerland’s Schindler.

Under the terms of the deal, Kone will pay TKE’s private equity (PE) owners Advent and Cinven €5bn in cash, about €15bn in shares and assume €9.2bn of the German lift manufacturer’s debt. The transaction, once completed, will be the largest in Finnish corporate history.

Kone said that shareholders holding just over 40 percent of all outstanding shares, representing approximately 74.3 percent of total voting rights, have agreed to support the deal.

The acquisition is subject to regulatory approval and is not expected to close before the second quarter of 2027. If completed, it would represent one of the largest PE exits in Europe in recent decades.

However, the proposed merger is expected to face intense antitrust scrutiny across multiple jurisdictions, with competitors already signalling possible challenges. Analysts have cautioned that the approval process could be lengthy and may require concessions, underlining the execution risks associated with integrating two large global operators.

According to a statement announcing the transaction, the combined group would have approximately €20.5bn in annual sales based on the latest financial year, with around 65 percent generated from service and modernisation activities. The combined company would also report more than €2.7bn in adjusted earnings before interest and tax, excluding synergies, and maintain approximately 3.2 million units. The companies expect to achieve annual cost savings of around €700m within three years through the integration of research and development functions and service networks.

Advent and Cinven acquired TKE for €17bn from German conglomerate Thyssenkrupp in 2020, following a competitive auction process that included a rival bid from a consortium involving Kone and PE firm CVC.

“For over a century, both Kone and TKE have successfully developed their businesses in tandem with an urbanizing world,” said Philippe Delorme, president and chief executive of Kone. “By uniting, we are laying the foundation for an even more innovative company, well positioned for long-term success.”

Mr Delorme continued that the combination would significantly strengthen the company’s ability to respond to increasing customer demand for reliable and sustainable solutions in a fast-changing environment, while also building a stronger and more diverse global workforce drawing on the expertise of both organisations. He added that the deal would accelerate the shift toward service and modernisation, improve resilience, and position the combined group to shape the future of urban mobility for the benefit of employees, customers and shareholders.

“What 50,000 colleagues have delivered with passion, pride and capability speaks for itself,” said Uday Yadav, chief executive of TKE. “As peers, we have deep respect for what Kone has built over more than a century. Together we will bring the very best of both companies to our customers, our people, and the cities we serve. The best of our story lies ahead.”

Bruno Schick, co-managing partner at Cinven, said TKE’s development had been exceptional, adding that he and his firm were proud to have supported its transformation into a leading platform alongside management and employees, delivering value for stakeholders while driving innovation. He added that the planned combination with Kone represented a strong opportunity to accelerate further growth in urban mobility.

Ranjan Sen, managing partner at Advent, said that since acquiring TKE in 2020 the firm had worked closely with management and employees to build a resilient and focused business, adding that sustained investment in technology, innovation and product development had enabled the company to become a leader in the sector.

Richard Summerfield