The German forklift vendor and logistics solution provider Jungheinrich AG said today it will acquire Indiana-based Storage Solutions group for $375 million, saying that buying the provider of racking and warehouse automation solutions would give it a strategic foothold in that fast-growing U.S. sector.
Hamburg, Germany-based Jungheinrich agreed to buy the company from its owners, the private equity firms Merit Capital Partners and MFG Partners, and from the management of Storage Solutions. The final price could eventually rise by the mid- to high- single digit percentage range if the Storage Solutions management team hits performance-based targets over three years following completion of the transaction.
Storage Solutions’ leadership seemed confident in their future success, based on a January 10 statement saying the firm had its sixth consecutive year of record growth in 2022, adding 60 employees and booking 29 contracted conveyor and automation projects. That growth brought the firm to a total of 170 employees with 2022 revenues of $290 million and profits of some $34 million.
In addition, Storage Solutions itself made two acquisitions during 2022, buying the Texas-based controls and automation engineering company EMIT Inc. and California-based SNC Solutions, a provider of pallet racking solutions.
Jungheinrich also noted that the acquisition will sit alongside and not have any impact on the existing partnership of Jungheinrich with Mitsubishi Logisnext Americas (MLA), which will remain the sole activity of Jungheinrich in the North American forklifts market.
“The acquisition of Storage Solutions is an important step in the implementation of our 2025+ strategy. It is an excellent opportunity to expand our geographic footprint in the U.S. and adds a strong strategic platform for growth in warehouse automation across the region,” Lars Brzoska, the Jungheinrich CEO, said in a release. “Storage Solutions is a well-established and successful business with an attractive customer base and an excellent management team. We see great opportunities in combining the warehouse and automation capabilities of both parties to the benefit of customers in the U.S. as well as our European customers with operations in North America.”
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