Facebook Pinterest Search Icon SourcingJournal_horiz Tumbler Twitter Shape photo-camera graph-trend Shape latest-news icon / user

Germany’s Kion Group Acquires Robotics Company Dematic to Expand to US

Join Theory, Google, H&M, McKinsey, Foot Locker, Lafayette 148, LL Bean, the Retail Prophet and more at Sourcing Journal’s Virtual Sourcing Summit, R/Evolution: Overhauling Fashion’s Outmoded Supply Chain, Oct 14 & 15.

Kion Group is on its way to becoming an international logistics leader.

The European industrial truck manufacturer announced Tuesday that it is acquiring Dematic, a leading global supplier of integrated automated technology and supply chain optimization expertise. The acquisition is expected to advance Kion Group’s reputation as one of the world’s leading providers of intelligent intralogistics solutions.

With funds managed by transaction sellers AEA Investors and Ontario Teachers’ Pension Plan Kion plans to create a company with more than 30,000 employees and 6.7 billion euro ($7.6 billion) in revenue.

Purchase price for the shares is anticipated to reach about $2.1 billion, based on Dematic’s enterprise value of $3.25 billion. The acquisition transaction is expected to close at the end of the fourth quarter of fiscal 2016.

“This transaction will be transformational to our industry. Kion Group and Dematic together will design and deliver solutions that better position our customers to respond to dynamic demand,” Dematic’s chief executive officer, Ulf Henriksson, said. “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. Together, KION Group and Dematic will jointly define a new era in material handling solutions.”

Purchasing Dematic will help to establish Kion Group as one of the top one-stop suppliers for intelligent supply chain and automation solutions. Kion will be able to create a seamless process of handling product and service to global industry customers by leveraging its sales and service networks, resources and technology.

The partnership would advance market positions, increase geographic footprint and foster revenue growth. Dematic will assist Kion’s brand reputation and service network in key global markets, such as Brazil, China and Europe, while Kion will work with Dematic’s strong influence in the U.S. and European automation sectors.

“In the ensuing three years, Dematic has achieved impressive results: rapid growth in order book, sales, and profitability; dramatically enhanced global business processes; and an expanded and diversified global customer base,” Dematic chairman G. Richard Wagoner, Jr. said. “To support the next stage of Dematic’s development and our customers, employees, and other constituents, we are very pleased to have Kion Group as the company’s new home.”

Related Articles

More from our brands

Access exclusive content Become a Member Today!