Cargotec and Kalmar Performance: A Week in Review of Two Spun-off Companies

The week ended with a mixed performance for both Kalmar and Cargotec, which were spun off from each other. While the industrial company Kalmar managed to close above EUR 30 euros on Friday, its closing price remained below that threshold throughout the week until it rose to EUR 30.28. This was an increase of 6.32% from Thursday’s closing price, indicating some growth in investor confidence.

Meanwhile, Cargo handling equipment company Cargotec saw its share close at around EUR 45 euros at the end of the week, down 1.47% from Friday’s close. On Monday, Cargotec opened at around EUR 47 euros but fell back below that level by the end of the day. The demerger resulted in the creation of two separate companies with distinct business focuses and financial performance.

Despite this separation, there are still connections between the two companies. When added together, the combined value of their shares on Friday was around EUR 75 euros, roughly equivalent to Cargotec’s B-series share price on Friday before the split last week (EUR 74.95). The demerger process involved exchanging one Kalmar share for one Cargotec share with investors as part of a deal to create these two independent entities with different business models and objectives.

As for Hiab and MacGregor, they remain as part of Cargotec for now but are subject to change in ownership and name structure in the coming years. Hiab is currently being sold separately from MacGregor as part of a plan to focus on core competencies within each company grouping. In a year or so, Hiab is expected to become a standalone entity under its own name while MacGregor remains under Cargotec ownership but may also be spun off at some point in time.