HAMBURG (dpa-AFX) - Forklift manufacturer Jungheinrich is also looking to benefit from further growth in online retailing with an acquisition in the United States. The Storage Solutions Group, a provider of racking systems and warehouse automation, will be acquired for around $375 million, Jungheinrich announced in Hamburg on Wednesday. In addition, there will be a performance-related bonus to management. The acquisition is to be financed from existing cash and debt and completed in the second quarter of 2023. A positive contribution to earnings per share and free cash flow is expected from the outset, the company said. The news was well received by the stock market.

The company's entry into the U.S. market for storage management systems will allow it to serve EU customers in the United States, wrote analyst Stefan Augustin of Warburg Research. He also said the acquisition of Storage Solutions Group complements its technology offering and is therefore positive.

Headquartered in Westfield, Indiana, Storage Solutions is reportedly a warehouse planning, automation and integration company with 170 employees. Customers included leading brands in logistics, e-commerce, retail, food and beverage, and industrial, among others. In 2022, Storage Solutions is expected to report sales of approximately $290 million and adjusted earnings before interest and taxes (Ebit) of approximately $34 million, Jungheinrich said.

Jungheinrich expects the acquisition to give it access to important logistics hubs in the USA. In addition, the company could also become active in the neighbouring countries of Canada and Mexico in the medium term. The purchase also complements the existing partnership with Mitsubishi Logisnext Americas (MLA), which remains Jungheinrich's sole activity in the North American material handling equipment market and will not be affected by the transaction.

"The acquisition of Storage Solutions is an important step in the implementation of our 2025+ strategy," company CEO Lars Brzoska said, according to the statement. The goal will be underpinned by the additional revenue from Storage Solutions, he added. Jungheinrich plans to generate revenues of 5.5 billion euros in 2025, one-fifth of which will be generated outside Europe.

The forklift manufacturer's shares rose by 4.6 per cent, putting it at the top of the MDax. This brings the total increase in the share price since the beginning of the year to around one third. However, the share price had fallen sharply last year./mne/ngu/mis