LiftConnect, Liftconnect (formerly Kone Lifts)

History

2023: S8 Capital buys out Kone's Russian business

S8 Capital investment group Armen Sargsyan bought the Russian business of the Finnish elevator manufacturer Kone. This deal was announced on October 24, 2023, while its financial terms were not disclosed.

According to the press service of Kone, after the closure of the transaction, employees of the Finnish company will retain their places. S8 Capital added that for high-quality and safe repairs will use developments in the supply of Russian components and components from friendly countries.

Investment group S8 Capital Armen Sargsyan bought the Russian business of the Finnish elevator manufacturer Kone

Our priority task in a short time is to establish the supply of components from friendly countries, as well as to attract local suppliers, providing for their mandatory certification to ensure the reliability and quality of elevator equipment. Meteor Lift specialists with the necessary expertise and knowledge in this matter will provide comprehensive support here, "said Torsten Schubert, Managing Director of S8 Capital.

Tatyana Pushkova, senior manager of the NEO consulting company, estimates the market value of Elevator Connect at 0.5-1 billion rubles. In a conversation with Kommersant, she noted that Elevator Connect is also the exclusive distributor of elevator equipment for G.Loong, one of the leaders in the Chinese market. One of the newspaper's interlocutors on the market calls exports from China a key area of ​ ​ development of the S8 elevator business.

This is the second elevator business bought by S8 Capital from a Western manufacturer. In July 2022, S8 Capital bought the business of the outgoing Russian manufacturer of elevators and escalators Otis, renaming it Meteor Lift.

According to Kone's own data, the share of Russian business accounted for less than 1% of the company's global sales. According to the National Elevator Union, Kone occupied 3% of the Russian market.^[1]

2022

Change of name to Liftconnect

The Russian company continued its activities under the name LiftConnect JSC. The name change took place on October 6, 2022.

Kone's Russian business sold to top managers of KONE Elevts

On June 28, 2022, Finnish elevator manufacturer Kone announced the sale of Russian business. The corresponding assets are bought by top managers of KONE Lifts JSC.

• Alexey Samkovich, General Director of the Russian division of Kone;
• Veronika Merkulova, financial director of KONE Elevts;
• Head of the Legal Department of KONE Lifts Elena Epp.

The deal is scheduled to close in the fourth quarter of 2022, but regulators must approve it first. After the deal closes, the company will operate independently and under a different name.

Kone Elevators

The resumption of deliveries of Kone elevators and escalators to Russia is not planned, however, in order to meet the demand for electrical lifting equipment, the company will be able to further explore opportunities for the supply of products from other manufacturers, the manufacturer said in a statement.

It is noted that the company will carry out all the necessary measures as part of the maintenance of elevators and escalators operated in Russia and will continue to fulfill the obligations for warranty maintenance of equipment. Despite the change of ownership, the company will complete all open projects under execution - the work will be completed and the equipment will be transferred to customers. From the date of signing the agreement on the sale of business and for a period of three months after the closure of the transaction, the Russian company will resume the supply of spare parts to ensure the uninterrupted and safe operation of the installed Kone electrical lifting equipment.

Unfortunately, the current situation forced the corporation to make such a decision. Nevertheless, I am sure that our company under the management of Russian management will be able to function sustainably and efficiently, - said Alexey Samkovich.[2]

Stopping supplies to Russia

By May 2022 the Finnish KONE , she stopped deliveries to the Russian Federation against the background of a special operation Russia on. To Ukraine

2021: Sales in 40 cities of Russia

In Russia, for 2021, Kone is represented in more than 40 cities of the country through its own offices and networks.

2008-2014: Opening branches in Russia

Over time, KONE opened 9 branches across the country that provided equipment supply, installation and maintenance services.

1992: Active activity in Russia

The company began its active activity in Russia under the KONE brand 30 years ago in St. Petersburg and Moscow.

1935: First delivery of Kone elevators

The history of the company's presence in the Russian market dates back to 1935, when the first delivery of KONE elevators installed at the Finnish Embassy in Moscow was carried out.

Notes