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.