The KION Group - the world's second-largest manufacturer of fork lift trucks - has signed an agreement with the Belgian automation specialist Egemin Group to purchase its Handling Automation division for a approximately €72m.
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.
"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. "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. 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 agreement creates huge opportunities for Egemin Automation; its CEO Jan Vercammen, who will manage Egemin Automation within the KION Group and report directly to Riske, 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.”
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. In particular, the intralogistics systems (ILS) business of the KION brand STILL will be closely linked to Egemin’s handling automation activities.
The transaction is subject to a number of customary conditions precedent and is expected to be closed during the third quarter of 2015.