00:00In one of the largest private equity exits ever in Europe and the largest deal in Finland's history. Kohn is
00:06buying TK elevator for more than 34 billion dollars. Joining us now is Bloomberg's U.S. deals managing editor Liana
00:11Baker. I don't know. I feel like the barometer of like Finland's largest deal is probably low. It's the largest
00:18deal in the elevator space. It's going to be really transformational. Yes. But it's great news for Sinven and Advent
00:23that got in five years ago and they're basically doubling their money.
00:27Although Kone out of Finland is paying 20 billion in stock and cash. So these PE firms could be tied
00:33up for a while with stock. So that'll be interesting to watch how they exit it over the years. And
00:38the deal is going to take a while to close as well.
00:40By the way, I'm I'm guessing that it's no mistake that the deal at hand here is like a hard
00:46asset deal. Are these the types of exits that are really getting done, you know, versus software, tech, etc., those
00:51fears?
00:52There's a ton of interest in industrial assets and real hard assets. And not only do they make the elevators,
00:57but they service them for years. So once you put in one of these elevators, you might be paying revenue
01:02all the time.
01:03So instead of paying for software, you're paying for these services that should be pretty lucrative.
01:07By the way, fair to say that both here and in Europe, capital markets are really robust. The fact that
01:12we're seeing this deal size in Europe is plagued by, for example, issues of energy around the war in the
01:18Middle East.
01:19Kona, though, their stock is down because it is their largest deal to date. And it's such a big bite
01:24for them that I think it was a bit of surprise to the markets that they were going to do
01:27this.
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