02.12.2016
KION GROUP AG DE000KGX8881
DGAP-News: KION media day: CEO Riske sees further potential for growth from the Dematic acquisition (news with additional features)
DGAP-News: KION GROUP AG / Key word(s): Miscellaneous
KION media day: CEO Riske sees further potential for growth from the Dematic
acquisition (news with additional features)
02.12.2016 / 17:28
The issuer is solely responsible for the content of this announcement.
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- Gordon Riske: KION Group's unique portfolio now covers the entire supply
chain
- Dematic CEO John Baysore: Market potential from the megatrends of
digitalization, urbanization, and increasing convenience for consumers
- KION media day at Dematic's European headquarters in Heusenstamm near
Frankfurt
Wiesbaden/Heusenstamm, December 2, 2016 - The Chief Executive Officer of
the KION Group, Gordon Riske, believes the acquisition of automation and
supply chain optimization specialist Dematic adds potential for growth.
"Through the acquisition, we are creating a company whose products and
services encompass the entire supply chain. Our product portfolio is unique
and ranges from forklift trucks to fully automated material handling
solutions," said Riske at the KION media day, which was held on Friday at
Dematic's European headquarters in Heusenstamm near Frankfurt. According to
Riske, the KION Group thus offers its customers everything they need for
their warehouses and production lines. "We are also significantly expanding
our global reach," emphasized the Chief Executive Officer.
At the event, the new CEO of Dematic, John Baysore, highlighted the market
potential offered by the megatrends of digitalization, urbanization, and
increasing convenience for consumers. "Dematic's automation solutions are
needed by customers who are adapting to changing consumer requirements and
want to maintain their competitive advantage," said Baysore. He added that
the driving factors in retail included the boom in online business, rising
labor costs, the trend for smaller stores, and the resulting shift of
inventory from stores to distribution centers.
The KION Group will have three segments
As a result of the transaction, the KION Group will start managing its
business and reporting financials by three segments in December 2016:
Industrial Trucks and Services, Supply Chain Solutions and Corporate
Services. The Industrial Trucks and Services segment represents KION's
business up to now and consists of four operating units: Linde Material
Handling EMEA and STILL EMEA, which each concentrate on Europe, the Middle
East and Africa, plus KION APAC and KION Americas, which hold cross-brand
responsibility for the Asia-Pacific region and the Americas, respectively.
The Supply Chain Solutions segment comprises Dematic, Egemin Automation and
Retrotech, while Corporate Services includes headquarter functions and
group wide services such as internal logistics and IT.
After the deduction of certain liabilities, the purchase consideration for
the shares in Dematic amounts to circa US$ 2.0 billion based on an
enterprise value of US$3.25 billion. The acquisition creates a leading
player with pro forma revenue of more than EUR6.7 billion in the 2015
calendar year and a high level of profitability in the form of a combined
adjusted EBIT margin of approximately 9.4 percent in the same period.
Dematic is a leading global supplier of advanced integrated supply chain
automation technology, software and services. Its portfolio of products and
systems includes intelligent software, conveyors, sortation, automated
guided vehicles, automated storage and retrieval systems, light/voice
directed order fulfilment, automated de-palletizing/palletizing and an
24/7/365 customer service. Dematic has grown by more than 12 percent
annually since 2013. In 2015, it generated revenue of roughly US$1.8
billion (EUR1.6 billion) and adjusted EBIT of US$166 million (EUR150
million). Dematic employs almost 6,000 skilled logistics professionals -
including more than 3,000 engineers in software development, research and
development, engineering services, project management and customer service.
The company operates more than 100 sites in 22 countries and is a leading
player in the United States, Europe and worldwide. To date, its specialists
have installed more than 4,500 integrated systems for small, medium-sized
and large companies in a broad variety of industries, including the fast-
growing e-commerce sector.
Attractive growth and cost synergies
The two companies complement one another with strong market positions and
regional presence thus opening up opportunities for cross-selling in the
medium term. Dematic will make use of the reputation and leading market
positions of KION's forklift brands in key markets such as Europe, China
and Brazil, while the KION Group benefits from Dematic's strong position in
the U.S. and European automation markets. Moreover, the combination of the
KION Group's comprehensive sales and service network and Dematic's large
installed base opens up potential for further revenue gains in the
software, service and retrofit businesses. The complementarity of both
businesses will generate cost synergies.
Website: kiongroup.com/mediasite
Twitter: @kion_group
The Company
The KION Group is a global leader in industrial trucks, related services,
and supply chain solutions. Across more than 100 countries worldwide, the
KION Group designs, builds and supports logistics solutions that optimize
material and information flow within factories, warehouses and distribution
centers. The company is the largest manufacturer of industrial trucks in
Europe, the second-largest producer of forklifts globally, and a leading
provider of warehouse automation.
The KION Group's world-renowned brands are clear industry leaders. Dematic,
the newest addition to the KION Group, is a global leader in automated
material handling providing a comprehensive range of intelligent supply
chain and automation solutions. Egemin Automation is a leading logistics
automation specialist with a particular strength in AGVs. The Linde and
STILL brands serve the premium industrial truck segment. Baoli focuses on
industrial trucks in the economy segment. Among its regional industrial
truck brands, Fenwick is the largest supplier of material handling products
in France, OM STILL is a market leader in Italy, and Voltas is a leading
provider of industrial trucks in India.
With a global installed base of more than 1.2 million industrial trucks and
over 6,000 installed systems, KION Group's customer base includes companies
in all industries and of all sizes on six continents. The company's 30,000
dedicated and highly skilled employees generated more than EUR6.7 billion
in pro-forma revenue for the calendar year 2015.
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
[email protected]
Frank Brandmaier
Head of Corporate Media Relations
Tel: +49 (0)611 770 752
[email protected]
Dematic
Cheryl Falk
Senior Vice President, Global Marketing Communications
Tel.: +1 414 870 8735
[email protected]
Jessica Heinz
Director Marketing & Communications CE
Tel: +49 69 583025-125
[email protected]
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Additional features:
Document: http://n.eqs.com/c/fncls.ssp?u=GGVCMIJHKG
Document title: Download press release as PDF
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02.12.2016 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.
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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, Tradegate Exchange
End of News DGAP News Service
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