Buying Dematic

Kion Makes $2.1-Billion U.S. Purchase

kion dpa
Kion drives towards international markets.
  • Why it matters

    Why it matters

    Jungheinrich and its bigger competitor, the Wiesbaden-based Kion Group, are developing new warehousing technologies as increased networking changes the industry.

  • Facts

    Facts

    • Kion is the world’s second-largest maker of forklifts after Toyota and ahead of German rival Jungheinrich.
    • The Wiesbaden-based firm had annual revenue of €5.1 billion and is listed on the German mid-cap MDAX Index.
    • Jungheinrich expanded its automation possibilities last year by acquiring Munich-based warehouse equipment maker, the Mias Group.
  • Audio

    Audio

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German forklift maker Kion has agreed to buy U.S. firm Dematic for $2.1 billion, or €1.9 billion, to combine one of the world’s biggest producers of pallet and forklift trucks with a supplier of warehouse logistics products and services.

Shares of Kion fell as much as 8 percent in Frankfurt following the announcement on Tuesday. The stock traded down 7.3 percent at €45.19 by 3.49 p.m. local time, reaching a 3-month low.

Kion, based in Wiesbaden near Frankfurt and partially controlled by Chinese firm Weichai Power, will buy Atlanta, Georgia-headquarted Dematic from funds managed by U.S.-based AEA Investors and the Ontario Teachers’ Pension Plan, Kion said Tuesday. Including liabilities, Dematic is valued at $3.25 billion.

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