KION Group to acquire Handling Automation division of Egemin
07 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 includes key forklift brands Linde and STILL.
The company is significantly expanding its expertise and capabilities in system solutions for intralogistics and automation, fields that are seeing increasingly strong demand.
The deal follows the recent link-up between Linde and French automation provider Balyo to work together on a new generation of automated forklifts.
The intralogistics systems (ILS) business of the STILL brand will be particularly closely linked to Egemin’s handling automation activities.
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.
Egemin’s Handling Automation division offers customised 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.
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."