KION Group AG, a supplier of forklift trucks, warehouse equipment and related services, is to acquire Dematic, a specialist in supply chain optimisation and automation.
The KION Group expects that purchase of Dematic will position it as a global leader in intralogistics. Leveraging its sales and service networks, technologies and resources, the enlarged company will be able to provide an offering of materials handling products and services to a global customer base. This offering ranges from manually operated industrial trucks to complete fully automated warehouses.
The deal will create a provider with close to 30,000 employees, more than €6.7bn in revenue for the calendar year 2015, and strong profitability, with a combined adjusted EBIT margin of approximately 9.4% for this period. After deductions for certain liabilities, the KION Group expects the purchase price for the shares to amount to approximately US$2.1bn, based on an enterprise value of Dematic of $3.25bn. The transaction is subject to customary closing conditions and regulatory approvals and is expected to be closed in the course of the fourth quarter of 2016.
Both companies contribute complementary market positions and geographical footprints, offering an opportunity for revenue growth. Dematic will leverage the KION Group’s service network and reputation in key markets like Europe, China and Brazil, whereas the KION Group will take advantage of Dematic’s position in the US and European automation markets in particular. Moreover, KION Group’s sales and service network, together with Dematic’s installed base, provides a basis for access to further revenues from services and systems upgrades.
“With the acquisition of Dematic we are substantially changing and enhancing what KION Group is and does – for further profitable growth in a quickly changing industry and digitalised world,” said KION Group’s CEO Gordon Riske.
“KION Group and Dematic together will design and deliver solutions that better position our customers to respond to dynamic demand,” said Ulf Henriksson, CEO of Dematic. “With a shared vision and commitment to R&D, the combined company will continue to focus on superior customer solutions with significant investment in this area.”
After closing of the transaction, Dematic will be integrated into the KION Group forming an additional fifth operating unit, which will also comprise the businesses of Egemin Automation and Retrotech. This future KION Group operating unit will be headed by Ulf Henriksson as its President.
Source: KION Group