KION Group acquires Handling Automation division of Egemin Group
Forklift supplier enhances logistics capabilities with automated warehouse systems, automated guided vehicles and in-floor chain conveyors solutions.
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 $80 million.
The transaction is expected to close in the third quarter of 2015.
Egemin’s Handling Automation division offers customized solutions for the automation of logistics in warehouses, distribution centers 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 $86 million of revenues with more than 300 highly specialized employees.
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 expanding its capabilities in system solutions for intralogistics and automation, fields that are seeing increasingly strong demand.
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.
“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,” said Gordon Riske, CEO of the KION Group, when the agreement was signed. “Automated material handling solutions will play a crucial role in Industry 4.0 as they facilitate the vision of the smart warehouse and factory. The fast-growing market for automated logistics and material flow systems is another area where we want to become a leading player.”
For Egemin Automation, the agreement creates huge opportunities for all its divisions. Jan Vercammen, CEO of Egemin Automation, said, “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.” 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 has been a shareholder of Egemin Group since 1999,” said 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.”
