Triton sells Dematic
Triton sells Dematic to private equity investor AEA Investors and Ontario Teachers' Pension Plan
- Turnaround from non-core business to the independent global market leader in intralogistics
- Significant increase in earnings and sales since acquisition by Triton in 2006
- Major investments to secure sustainable growth
- Strengthened presence in core markets USA and China
- Significant increase in R&D expenditure and investment in customer services
Luxembourg 12/11/2012 - Funds advised by Triton today announced the sale of logistics specialist Dematic, the global leader in warehouse technology and materials handling solutions, to private equity investor AEA Investors ("AEA") and Teachers' Private Capital ("TPC"), the private equity arm of Canadian pension fund Ontario Teachers' Pension Plan. As part of the transaction, around
€ 450 million of outstanding bonds will be redeemed. Dematic has sales of approximately € 1 billion and serves world-wide leading customers with around 4,500 employees across the globe.The parties to the transaction have agreed not to disclose the purchase price.
"Today we are particularly well positioned in the growing retail and e-commerce segments. AEA and TPC have the track record, know-how and capital to support our growth strategy in this very attractive market," said Roar Isaksen, President and CEO of Dematic.
Triton acquired Dematic from Siemens in 2006. At the time the company was a loss-making non-core business. Since then, Dematic has steadily improved its results. "Over the past six years, the management, board, employee representatives and all Dematic employees have done a fantastic job to turn the company into the highly profitable and technologically and geographically well-positioned global market leader in intralogistics," said Peder Prahl, director of the General Partner of Triton Fund II. "We would like to thank everyone for their contribution during Triton's ownership."
In order to bring Dematic back to sustained profitability, the company, with the support of Triton, had to make significant new investments and to restructure its USA and German operations in 2007 and 2008. This did not only allow Dematic to successfully steer through the financial crisis of 2009, but also laid the foundation for where the company stands now: the independent profitable global market leader in the growing intralogistics market.
As part of the turnaround, Dematic simplified its corporate structures, shortened decision-making processes and improved accountability across the company by implementing a systematic approach to cost and operational efficiency. The company also significantly increased R&D expenditures and invested in the expansion of a dedicated customer services unit. Today, customer services are a major contributor to Dematic's overall profit. Large investments in sales and in marketing have yielded strong results in markets such as North America, Europe and Australia. Asia has grown from almost nothing in 2006 into a substantial part of the business today.
Dematic's international presence and leadership has been continuously expanded. The company made the complementary acquisition of HK systems in 2010 and has developed a new factory in Suzhou, China. "Both investments were milestones for boosting Dematic's competitiveness in our two core markets USA and China and expanding our client list in the growing e-commerce segment," said Roar Isaksen.
The sale, which is subject to the usual regulatory approval processes, is expected to be completed by January 2013.
Dematic is the global leader providing an impressive range of intelligent logistics and materials handling solutions. With a global knowledge network of around 4,500 highly skilled logistics professionals, Dematic is able to provide its customers with a unique perspective in world class materials handling solution design. Our commitment to product and solution R&D combined with manufacturing plants in the USA, Europe, China and Australia ensures that Dematic has the range and capability required to provide reliable, flexible and cost effective solutions globally. Our tremendous track record of success has led to the development and implementation of more than 5,000 world class integrated systems for a customer base including some of the world's biggest companies. Dematic generates a global business volume of approximately € 1 billion (or for the USA: of approximately USD 1.3 billion / $1.3b).
For further information: www.dematic.com
Triton is a successful investment firm dedicated to investing in and the positive development of medium-size businesses headquartered in Northern Europe - with a focus on Germany, Switzerland, Austria and the four Nordic countries: Denmark, Finland, Norway and Sweden. Within this European region, Triton focuses on businesses in the Industrial, Business Services, and Consumer / Health sectors.
Founded in 1997, Triton seeks to pro-actively contribute to the building of better businesses for the longer term. Triton and its executives wish to be agents of positive change towards sustainable operational improvements and growth. The 23 companies currently in Triton's portfolio have combined sales of approximately €11.9 billion and over 46,000 employees.
The Triton funds are advised by teams of investment professionals at Triton Advisers.
For further information: www.triton-partners.com