The US$2.1 billion deal will see Linde’s owner grow intralogistics presence
Dominant European materials handling group Kion has bought automated warehousing specialist Dematic.
Kion’s move is worth US$2.1 billion (A$2.8 billion) to the sellers, who are funds managed by AEA Investors and Ontario Teachers’ Pension Plan, and values Dematic at US$3.8 billion.
Kion gains almost 6,000 logistics professionals, including more than 3,000 engineers in software development, R&D, engineering, project management and customer service, along more than 100 locations in 22 countries.
“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,” Kion CEO Gordon Riske says.
“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.”
“Industry 4.0’ is known as the fourth industrial revolution and relates to automation and data exchange, while ‘Intralogistics 4.0’ is the warehousing and materials handling reflection of that.
The Kion move will be transformational to the industry, Dematic CEO Ulf Henriksson believes.
“Kion Group and Dematic together will design and deliver solutions that better position our customers to respond to dynamic demand,” Henriksson says.
“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.”
Kion – comprising 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 international logistics automation specialist.
Dematic will be form Kion’s fifth operating unit, which will also comprise the businesses of Egemin Automation and Retrotech and be headed by Henriksson as its president.