Freshfields advises Advent and Cinven on TK Elevator and Kone merger

Global law firm Freshfields is advising a consortium led by private equity firms Advent and Cinven on the merger control and other regulatory aspects of the agreed combination of Kone Corporation and TK Elevator (TKE). Advent and Cinven have entered into an agreement with Kone Corporation to combine the companies in a cash and share transaction – creating one of the world’s leading elevator and escalator companies.

The total consideration would result in an enterprise value for TKE of EUR 29.4 billion. The combined group would have nearly double the size of the current Kone Group, with more than 100,000 employees in over 100 countries. On an illustrative basis for the last financial year, annual sales of the combined group would amount to approximately EUR 20.5 billion. The combined group will be headquartered in Finland.

Freshfields is advising on the regulatory approval processes with a global team led by Partners Martin Klusmann (Düsseldorf) and Alastair Chapman (London). The team further comprises Partner Jenn Mellott, Christine Wilson (both Washington) and Hazel Yin (Freshfields RuiMin, Shanghai), Counsels Juliane Ziebarth (Düsseldorf) and Elizabeth Suarez (Washington), Principal Associates Ole Schley, Marleen Böhm (both Düsseldorf) and Senior Associate Martin Dickson (London).

An initial public offering (IPO) was also one of the strategic options for TKE and its shareholders as they were setting the course for the future of the company. Freshfields has advised on the alternative of an IPO option with a capital markets team led by Partners Christoph Gleske and Daniel von Bülow (both Frankfurt). The team further comprised Partner Simone Bono (London), Partner Dirk-Jan Smit (Amsterdam), Counsel Christina Zapf and Associate Vincent Buchta (both Frankfurt), Senior Associate Mark Maarschalkerweerd (Amsterdam).