21.06.2016
KION GROUP AG DE000KGX8881
DGAP-News: KION Group to become a global leader in intralogistics solutions by acquiring Dematic (news with additional features)
DGAP-News: KION GROUP AG / Key word(s): Mergers & Acquisitions
KION Group to become a global leader in intralogistics solutions by
acquiring Dematic (news with additional features)
21.06.2016 / 07:40
The issuer is solely responsible for the content of this announcement.
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- Combination of KION Group and Dematic creates a global leader in advanced
material handling solutions
- KION Group establishes a provider of the full range of material handling
solutions - from hand pallet and forklift trucks to complete fully
automated warehouse systems
- KION Group expects the purchase price for the shares to amount to approx.
USD 2.1 billion, based on an enterprise value of Dematic of USD 3.25
billion
- Dematic contributes approx. USD 1.8 billion in revenue (calendar
year 2015)with attractive growth
- KION Group establishes with Dematic a critical presence in the
Americas and further develops its business in Europe and Asia
- Committed bridge financing; long-term financing with mix of equity
and debt maintaining solid cross-over credit profile
- Closing of the transaction expected in Q4 2016; transaction subject to
customary closing conditions and regulatory approvals
Wiesbaden, 21 June 2016 - The KION GROUP AG ("KION Group"), already one of
the two largest suppliers of forklift trucks, warehouse equipment and
related services, will become one of the leading global providers of
intelligent intralogistics solutions by acquiring Dematic, a best-in-class
automation provider and specialist in supply chain optimization. The KION
Group agreed with funds managed by AEA Investors and Ontario Teachers'
Pension Plan as the sellers on this landmark transaction to create a true
global provider with close to 30,000 employees, more than EUR 6.7 billion
in revenue for the calendar year 2015 and a strong profitability with a
combined adjusted EBIT margin of approx. 9.4 per cent for this period.
After deductions for certain liabilities, the KION Group expects the
purchase price for the shares to amount to approx. USD 2.1 billion, based
on an enterprise value of Dematic of USD 3.25 billion.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.
Dematic is a leading global supplier of advanced integrated automation
technology, software and services to optimize supply chains and to meet the
material handling automation needs of its customers. The company's product
and systems portfolio ranges from Automated Guided Vehicles (AGVs),
palletizers, storage and picking equipment including automated storage and
retrieval systems, sorters and conveyors to a leading integrated software
platform and automation technologies. Dematic has been growing annually by
more than 12 per cent since 2013. It generated approx. USD 1.8 billion in
revenue and achieved an adjusted EBIT of USD 166 million during the
calendar year 2015. Dematic employs almost 6,000 skilled logistics
professionals - including over 3,000 engineers in software development,
R&D, engineering, project management and customer service - to support its
customers globally, with engineering centers and manufacturing facilities
located around the globe. With more than 100 locations Dematic is present
in 22 countries. The company is a leading player in the USA, Europe, and
worldwide. Dematic has implemented more than 4,500 integrated systems for
small, medium and large companies with business in a broad variety of
industries around the globe including the fast-growing e-commerce business.
Global leader in Intralogistics 4.0
The purchase of Dematic will establish the KION Group as a global leader in
Intralogistics 4.0. Leveraging its sales and service networks, technologies
and resources, the enlarged company will be able to seamlessly offer the
full material handling product and service offering to customers of all
sizes in a broad range of industries across the world. This most
comprehensive material handling solutions offering in the market ranges
from manually operated industrial trucks to complete fully automated
warehouses. The KION Group will thus enhance its position as one-stop-
supplier for intelligent supply chain and automation solutions and is now
perfectly positioned for attractive and profitable growth driven by
megatrends like Industry 4.0, digitalization and e-commerce.
Both companies contribute strong complementary market positions and
geographical footprint as an opportunity for revenue growth. Dematic will
leverage the KION Group's service network and brand reputation in key
markets like Europe, China and Brazil, whereas the KION Group will take
advantage of Dematic's strong position in the US and European automation
markets in particular. This complementarity is also the source of cost
synergies from this combination. KION Group's strong sales and service
network together with Dematic's sizeable installed base provides the basis
for unlocking further revenue potential from services and systems upgrades.
A unique company in its industry
In the past year, the KION Group already started to build up a strong
position as provider of automated systems solutions by acquiring Egemin
Automation and Retrotech, thereby making further inroads in this attractive
and growing market. "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 digitalized world," said KION
Group's CEO Gordon Riske. "We are becoming a unique provider of products,
services and solutions. Like no other company in our industry, we can
accompany every customer seamlessly on its journey to Industry 4.0 and
Intralogistics 4.0 now and everywhere."
"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," 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. Together, KION Group and Dematic will jointly
define a new era in material handling solutions."
"The entire KION Group Supervisory Board is excited about the combination
of KION Group and Dematic and is fully supportive of this landmark
transaction. This marks another milestone in the implementation of the KION
Group Strategy 2020," said John Feldmann, Chairman of the KION Group
Supervisory Board. "Together KION Group and Dematic will be even better
able to offer their customers worldwide the best suiting products and
solutions available on the market."
"Following their purchase of Dematic in early 2013, owners AEA investors
and Ontario Teachers' Pension Plan, supported by a renewed management team
and board, invested significantly in the company to take advantage of
automation trends in the supply chain driven by omnichannel retail and e-
commerce," said G. Richard Wagoner, Jr., Chairman of Dematic. "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.
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."
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.
Solid financing strategy
"KION Group's strong cash flow generation and debt reduction over the last
years since the IPO has provided us with the balance sheet strength for
such a transformational transaction," said Thomas Toepfer, CFO of the KION
Group, and he further commented: "We have solid financing in place to fund
the transaction with a prudent mix of equity and debt in line with our
conservative financial policy that will maintain our financial profile as a
good cross-over credit."
The transaction will be funded initially with a bridge loan facility of EUR
3.0 billion which has been firmly committed by a group of KION Group's core
relationship banks. KION Group intends to permanently refinance the
acquisition through equity, long-term capital markets and bank debt. The
equity issuance of up to 10 per cent of new shares would utilize the entire
currently existing authorized share capital and is fully supported by KION
Group's major shareholder Weichai Power. KION Group is committed to
maintaining its position as a strong cross-over credit with reliable access
to debt capital markets and would therefore consider the full spectrum of
equity-generating instruments in line with its conservative financial
policy.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Companies
The KION Group - comprising the seven brands of Linde, STILL, Fenwick, OM
STILL, Baoli, Voltas and Egemin Automation - is the largest manufacturer of
industrial trucks in western and eastern Europe, the global number two in
the industry and the leading non-domestic supplier in China. The Linde and
STILL brands serve the premium segment worldwide. Fenwick is the largest
supplier of material handling products in France, while OM STILL is a
market leader in Italy. The Baoli brand focuses on the economy segment, and
Voltas is a leading provider of industrial trucks in India. Egemin
Automation is a leading international logistics automation specialist.
The KION Group is present in more than 100 countries and, in 2015, employed
around 23,500 people and generated revenue of around EUR5.1 billion. KION
GROUP AG is listed on Deutsche Börse's Frankfurt Stock Exchange, the MDAX
(the German stock index for medium-sized companies) and the STOXX Europe
600 index, which comprises the 600 largest companies in Europe.
Dematic is a leading supplier of integrated automated technology, software
and services to optimize the supply chain. Dematic employs almost 6,000
skilled logistics professionals to serve its customers globally, with
engineering centers and manufacturing facilities located across the globe.
Dematic has implemented more than 4,500 integrated systems for a customer
base that includes small, medium and large companies doing business in a
variety of market sectors.
Disclaimer
This document and the information contained herein are for information
purposes only and do not constitute a prospectus or an offer to sell or a
solicitation of an offer to buy any securities in the United States or in
any other jurisdiction.
This release contains forward-looking statements that are subject to
various risks and uncertainties. Future results could differ materially
from those described in these forward-looking statements due to certain
factors, e.g. changes in business, economic and competitive conditions,
regulatory reforms, results of technical studies, foreign exchange rate
fluctuations, uncertainties in litigation or investigative proceedings, and
the availability of financing. We do not undertake any responsibility to
update the forward-looking statements in this release.
Further information for the media
KION Group
Michael Hauger
Head of Corporate Communications
Tel.: +49 (0)611 770 655
Mobile: +49 (0)151 16 86 55 50
[email protected]
Frank Brandmaier
Head of Corporate Media Relations
Tel.: +49 (0)611 770 752
[email protected]
Dematic
Cheryl Falk
Vice President, Global Marketing Communications
Tel.: +1 414 870 8735
[email protected]
Further information for investors
Frank Herzog
Head of Corporate Finance
Tel.: +49 (0)611 770 303
[email protected]
Dr Karoline Jung-Senssfelder
Head of Investor Relations and M&A
Tel.: +49 (0)611 770 450
[email protected]
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=HWBIWGJYTW
Document title: Download press release as PDF
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21.06.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
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Language: English
Company: KION GROUP AG
Abraham-Lincoln-Str. 21
65189 Wiesbaden
Germany
Phone: +49 (0)611 770-0
Fax: +49 (0)611 770-690
E-mail: [email protected]
Internet: www.kiongroup.com
ISIN: DE000KGX8881
WKN: KGX888
Indices: MDAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart; Terminbörse EUREX
End of News DGAP News Service
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472975 21.06.2016
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