The Kion acquisition of Dematic has provided the company with the means to expand their reach and offerings, and also to further their focus on the Internet of Things. These new products and technologies will benefit many organizations, from small businesses to the largest enterprises. By bringing together two highly respected brands in the Industrial Automation industry, this merger is set to revolutionize the future of automation in the industrial sector. kion acquisition of dematic
Digital Applications International
In March 2020, Dematic will acquire the UK firm Digital Applications International (DAI). The combined company will have a market share of approximately 40 percent of the automated storage systems industry. DAI’s core product is a warehouse management system that complements Dematic’s iQ performance-optimizing on acquisition of Dematic
DAI has offices in London, Manchester, Aberdeen, and Shanghai. Its capabilities include warehouse management, distribution, and storage. Both companies have been working together for several years. They will continue their partnership and share their capabilities. kion acquisition of dematic
With the acquisition, KION Group will add Dematic’s technologies to its portfolio. This will enable KION Group to provide its customers with complete material handling and intelligent supply chain solutions. KION will also be able to leverage the sales network of Dematic. kion acquisition of dematic
The combined offering will be attractive to new and existing customers seeking to combine their platforms. Additionally, the combination of the two companies will create cost synergies. Customers will be able to take advantage of data and analytics to understand efficiencies and develop more sustainable supply chains. kion acquisition of dematic
The acquisition is expected to close in the fourth quarter of 2016. Kion intends to refinance the transaction through long-term capital markets debt and equity. A bridge loan facility of EUR 3.0 billion has been secured by a group of KION Group core relationship banks. kion acquisition of dematic
KION Group is a global supplier of industrial trucks, materials handling solutions. Dematic will be integrated into the group and will be part of the Supply Chain Solutions segment. kion acquisition of dematic
Dematic has been a leading supplier of warehouse automation and supply chain optimization solutions. The company has over 8,000 employees worldwide and has manufacturing facilities and service centers in 25 countries. Among its partners are Danaher Motion and SAP. kion acquisition of dematic
In addition to its global presence, Dematic has an extensive presence in Latin American markets. It has installed systems for brands such as Walmart and Coca-Cola. It also has a growing presence in Mexico. kion acquisition of dematic
In the USA, the company has a strong base of customer installations. The firm is headquartered in Atlanta. kion acquisition of dematic
Intralogistics 4.0 – kion acquisition of dematic
The acquisition of Dematic by Kion Group will help the company establish itself as one of the world’s leading providers of intralogistics 4.0 solutions. This is a result of the companies’ complementary market positions and cost synergies.
The companies expect to close the transaction in the fourth quarter of 2016. During the past five years, the global intralogistics industry has grown at 14.3% and is expected to increase by 15.5% by 2030. In addition, the demand for intralogistics is set to increase with the adoption of 5G technology. With the increasing use of e-Commerce platforms by consumers, the supply chain market is also set to consolidate over the next few years.
KION Group is a German logistics and materials handling firm. It has manufacturing facilities in 22 countries, and operates in more than 100 markets worldwide. Currently, the company has a diversified product portfolio and strong reputation in key markets.
KION Group’s Strategy 2020 focuses on growth, capital efficiency, and resilience to crises. To achieve these objectives, KION intends to enhance its profitability while also maintaining its position as the leading supplier of material handling and automation solutions.
The acquisition of Dematic will further strengthen the company’s lift truck business, as well as introduce new offerings to the KION Group’s product portfolio. Both companies will design solutions to better respond to the dynamic demands of the markets.
Dematic’s portfolio consists of automated storage and retrieval systems, robotic storage and picking systems, and conveyors.
The acquisition will strengthen the Kion Group’s position as a one-stop solution provider in the material handling industry. Additionally, the company plans to leverage the resources and sales and service networks of Dematic. They will combine their technologies to provide customers with solutions that improve productivity and create a sustainable supply chain.
The combination of Dematic and KION Group will help to drive revenue growth and bolster profits. They will also benefit from each other’s geographical footprints and complementary products.
By combining these two companies, the companies expect to generate an additional $1.7 billion in revenue by the end of 2015. This would be a substantial increase from their combined revenue of $7.58 billion.
New products and technologies
The Kion acquisition of Dematic creates a leading player in the global automated systems market. It also strengthens KION Group’s position as a one-stop supplier for intelligent supply chain solutions.
In addition, the transaction will enable Kion to tap into high-growth trends. This includes megatrends such as digitalization, urbanization, and consumer demand for high-quality products.
The company has manufacturing facilities in more than twenty countries. A total of over 11,000 employees work at Dematic, including almost 6,000 logistics professionals in the U.S., Europe, and Asia.
Since 2013, Dematic has grown 12 percent annually. It has implemented more than 4,500 integrated systems for companies in a variety of industries. For example, Dematic provides e-commerce services to retail and wholesale customers. Also, the company has research and development engineering centers in several countries.
Dematic also has partnerships with other companies. In particular, it is a partner of SAP. Other partners include Danaher Motion and Vocollect. Moreover, the company has a strong presence in Latin America.
The company’s revenue is expected to reach more than EUR6.7 billion in the 2015 calendar year. The company has an adjusted EBIT margin of 9.4 percent.
As a result of the Kion acquisition of Dematic, the company will also offer new products and technologies. These include the Dematic Roller Non-Contact Accumulation (RNCA) platform, which offers a compact singulation solution. Moreover, the company will introduce hand pallets.
After the merger is completed, the KION Group will operate in three segments: Supply Chain Solutions, Corporate Services, and the Americas. Each segment will be led by a senior executive.
The combined company will be able to offer a full material handling product line and will be able to serve customers of all sizes. This will include customers in the retail, wholesale, transportation, and manufacturing industries. With its existing products and solutions, the Kion Group will be well-positioned for profitable growth.
The transaction will be financed by bank debt and equity. The transaction is subject to regulatory approval. At the end of 2016, Kion and Dematic will become one company.
Internet of Things
The Kion Group has acquired Dematic. The two companies will combine their strengths to create a leading supplier of intelligent intralogistics solutions.
The acquisition is set to strengthen Kion’s global position as a leading provider of automated systems for warehouses and e-commerce. It will also enhance the company’s ability to tap into growth opportunities in North America and Europe.
With the new partnership, the KION Group will offer a comprehensive product portfolio that includes material handling equipment, forklift trucks, and fully automated material handling solutions. In addition, it will be able to tap into high-growth trends such as digitalization and Industry 4.0.
After the deal is closed, the company will manage three segments: Supply Chain Solutions, Industrial Trucks and Services, and Corporate Services. It will also integrate its existing business units, Linde Material Handling EMEA, Kion Americas, and Retrotech.
The merger will result in the creation of a new operating unit led by former Dematic North America CEO John Baysore. He will serve as president of the new entity. Other executives will include Scott Watts, executive vice president of North America; Jeff Moss, executive vice president of international; and Frank Herzog, executive vice president of finance.
As a part of the merger, KION and Dematic will also introduce an add-on for customers who want to enhance their current platform. Among other capabilities, it will provide full WMS capabilities, as well as Dematic’s iQ Insights, a cloud-based Asset Performance Management system.
Earlier this year, KION announced plans to invest up to $2.1 billion in Dematic. This will partially finance the transaction. A long-term capital markets debt and a bridge loan are planned, along with an equity contribution from a planned capital increase.
Both companies expect the acquisition to close in the fourth quarter. KION will also refinance the transaction with bank loans, with a plan to pay off the equity with a 3 billion euro bridge loan.
Kion Group and Dematic will now be able to combine their warehouse and hardware capabilities to better address customer needs. Together, the two companies will be able to offer more complete warehouse management solutions for both new and after-market customers. Combined offerings will be especially attractive to new customers looking to take their first steps in an automated warehouse journey.
