Jungheinrich has announced the acquisition of Indiana-based Storage Solutions group, a leading provider of racking and warehouse automation solutions, to gain enhanced access to the attractive US warehousing and automation market.
Jungheinrich has signed a share purchase agreement with Merit Capital Partners, MFG Partners and the management of Storage Solutions for the acquisition of 100% of the share capital in Storage Solutions for a purchase price of approximately USD375 million.
Storage Solutions, headquartered in Westfield, Indiana, is a warehouse design, automation and integration company with 170 employees and 45 years of experience in delivering turnkey, best-fit solutions to customers. Based on a technology-agnostic business model, the company has achieved a strong position in the attractive US warehousing market which benefits from robust long-term growth dynamics. It offers unique vertically integrated service lines with in-house logistics and installation teams, ensuring on-time project completion and providing value-added services including workflow optimisation, engineering and permitting.
Storage Solutions is set to report revenues of approximately USD290 million for 2022 and an adjusted EBIT of approximately USD34 million.
For Jungheinrich, the acquisition is highly complementary to its global footprint and will further strengthen the company's market position. It is a unique opportunity to enter a large and rapidly growing market segment with a strategic foothold in the US.
The market coverage of Storage Solutions will provide Jungheinrich with access to key logistics hubs in the US and the opportunity to support the existing European customer base in this market.
Jungheinrich believes acquiring a growth platform in the US also provides additional mid-term potential to build a presence in the adjacent countries of Canada and Mexico. 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 forklift market.
Jungheinrich chief executive Lars Brzoska sees the acquisition as “an excellent opportunity to expand our geographic footprint in the US”, adding that it provides a strong strategic platform for growth in warehouse automation across the region.
“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 US as well as our European customers with operations in North America,” he explains.