Antwerp/Wiesbaden, 7 May 2015 – The KION Group has signed an agreement with the Belgian automation specialist Egemin Group to purchase its Handling Automation division for an enterprise value of approximately €72 million. The transaction is subject to a number of customary conditions precedent and is expected to be closed in the course of the third quarter of 2015.
The KION Group is one of the world’s two largest suppliers of forklift trucks, warehouse technology and associated services and increases with this acquisition the number of brands in its portfolio to seven. The Wiesbaden-based company is thus significantly expanding its expertise and capabilities in system solutions for intralogistics and automation, fields that are seeing increasingly strong demand.
Egemin’s Handling Automation division offers customized solutions for the automation of logistics in warehouses, distribution centres and factories. It delivers automated warehouse systems, automated guided vehicles and in-floor chain conveyors solutions. In fiscal year 2014, the Handling Automation division of the Egemin Group generated approximately €76 million of revenues with over 300 highly specialised employees.
The Egemin Group‘s other divisions (Process Automation, Life Sciences, Infra Automation and Consulting & Services) are not part of this transaction and will continue their activities under a new brand name, shortly to be disclosed. This company remains a subsidiary of Ackermans & van Haaren, listed on Euronext Brussels.
ACQUISITION OPENS UP SIGNIFICANT OPPORTUNITIES FOR THE KION GROUP AND EGEMIN AUTOMATION
“By acquiring Egemin’s handling automation activities, the KION Group is strengthening its expertise and capabilities in the design and management of complex logistics automation projects for the future. Automated material handling solutions will play a crucial role in Industry 4.0 as they facilitate the vision of the smart warehouse and factory,” said Gordon Riske, CEO of the KION Group, when the agreement was signed. “The fast-growing market for automated logistics and material flow systems is another area where we want to become a leading player. Together, Egemin Automation and the KION Group have vast potential for innovation that will enable us to provide the best possible solutions for our customers.” The acquisition marks another milestone in the KION Group’s implementation of its Strategy 2020.
For Egemin Automation, the agreement creates huge opportunities for all its divisions. Jan Vercammen, CEO of Egemin Automation, emphasised: “Egemin Automation has been working closely with the brands of the KION Group for many years. Being part of the KION Group will open up huge growth opportunities for the Handling Automation division. And it allows the four other divisions of the Egemin Group to focus on the growth of their core activities.” Jan Vercammen will manage Egemin Automation within the KION Group and report directly to the KION CEO Gordon Riske.
Egemin Automation will be integrated in the KION Group as an independent company under the brand name Egemin Automation and will be responsible for the Group’s project business in the fields of system solutions and automation. Particularly the intralogistics systems (ILS) business of the KION brand STILL will be closely linked to Egemin’s handling automation activities.
ACKERMANS & VAN HAAREN CONTINUES ITS SUPPORT OF THE OTHER EGEMIN GROUP DIVISIONS
“Ackermans & van Haaren has been a shareholder of Egemin Group since 1999,” states Luc Bertrand, CEO of AvH and Chairman of Egemin Group’s board of directors. “In this period of 15 years, a well thought-out strategy and continued professionalism has brought the company to a leading position in various fields of automation. We are very pleased to offer both Handling Automation and the other divisions the new possibilities they deserve. This agreement allows them to continue their growth, each with their own know-how and markets.”
A more focused approach gives the Process Automation, Life Sciences, Infra Automation and Consulting & Services divisions new opportunities. Geert Stienen, current Egemin Group CFO, will lead this company as CEO: “This transaction allows us to deploy a dedicated business strategy, built to the particular needs of the four divisions. The management and board of directors of Egemin Group are convinced that with this transaction these divisions can leverage on both their strong market presence and clear strategic focus to increase their customer intimacy and market share. As the Egemin Automation brand is integrated into the KION Group, we will shortly announce the new company name under which the remaining divisions will continue to deliver their solutions together.”
THE KION GROUP
The KION Group – comprising the six brands of Linde, STILL, Fenwick, OM STILL, Baoli and Voltas – 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. The KION Group is present in more than 100 countries and, in 2014, employed almost 23,000 people and generated revenue of around €4.7 billion. KION GROUP AG has been listed on Deutsche Börse’s Frankfurt Stock Exchange since June 2013 and was admitted to the MDAX, the German stock index for medium-sized companies, in September 2014.
THE EGEMIN GROUP
The Egemin Group designs, develops and integrates automation solutions to improve intralogistics and production processes for industrial companies and public infrastructure. The Egemin Group offers tailor-made solutions for its customers to give them a competitive edge. Target markets include distribution and logistics, life sciences, the food industry, oil and gas and infrastructure. The Egemin Group approaches the market through five divisions – Handling Automation, Life Sciences, Process Automation, Infra Automation and Consulting & Services. Its core activities include consulting and advice, automation projects and solutions and life cycle services. The Egemin Group operates on a world-wide scale from its headquarters in Antwerp and has 8 other offices located in Europe, North America, and Asia. The company employs 750 people.
ACKERMANS & VAN HAAREN
Ackermans & van Haaren is a diversified group active in 5 key sectors: Infrastructure & Marine Engineering (DEME, one of the largest dredging companies in the world – CFE and Van Laere, two construction groups with headquarters in Belgium), Private Banking (Delen Private Bank, one of the largest independent private asset managers in Belgium, and asset manager J.M. Finn & C° in the UK – Bank J. Van Breda & C°, niche bank for entrepreneurs and liberal professions in Belgium), Real Estate, Leisure & Senior Care (Leasinvest Real Estate, a public regulated real estate company – Extensa, an important land and real estate developer focused on Belgium, Luxembourg and Central Europe), Energy & Resources (Sipef, an agro-industrial group in tropical agriculture) and Development Capital (Sofinim and GIB). In 2014, through its share in its participations, the AvH group represented a turnover of 5.9 billion euro and employed 22,633 people. The group concentrates on a limited number of strategic participations with significant potential for growth. AvH is quoted on the BEL20 index, the Private Equity NXT index of Euronext Brussels and the European DJ Stoxx 600.
Egemin Automation will work particularly closely with the intralogistics systems (ILS) business of the KION brand STILL. In future, current Egemin Group CEO Jan Vercammen will manage the Egemin Automation brand as CEO within the KION Group and report directly to the KION CEO Gordon Riske. Jan Vercammen will be supported in the management team by current division manager Handling Automation Marc Guns, who takes the position of COO.
Geert Stienen, current CFO of the Egemin Group, will become CEO and lead the new company with the four divisions into the future. He will be assisted by Jo Janssens, who remains COO. Division managers Arnoud den Hoedt, Pieter Tilkens and Marc Bocxstael continue to lead their respective divisions in the new company. The Consulting & Services division will be led by Geert Stienen as well.The transaction with the KION Group is expected to be completed in the third quarter of 2015.
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.
About Dematic Egemin
Dematic Egemin (formerly Egemin Automation) manufactures, implements and services mobile automation solutions that improve warehouse, production and distribution center processes to optimize the supply chain. Product solutions include Automatic Guided Vehicles (AGVs) and in-floor towing solutions. Dematic Egemin comprises the Mobile Automation group within Dematic, with a Center of Excellence located in Holland, Michigan.
Dematic is a leading global supplier of integrated automated technology, software and services to optimize the supply chain. Dematic employs over 6,000 skilled logistics professionals to serve its customers globally, with engineering centers and manufacturing facilities located across the globe. Dematic, Egemin and Retrotech, now integrated under the roof of KION Group, have implemented more than 6,000 integrated systems for a customer base that includes small, medium and large companies doing business in a variety of market sectors.
Headquartered in Grand Rapids, Michigan, Dematic is a member of KION Group, 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 centres. 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.
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