A Westfield company that provides racking and warehouse automation services has been sold to a German company for $375 million.
Jungheinrich AG, based in Hamburg, Germany, signed a purchase agreement with Chicago-based Merit Capital Partners, New York-based MFG Partners and the management of Westfield-based Storage Solutions for the acquisition. In December 2020, Storage Solutions announced that it had been acquired by private equity firms Merit Capital Partners and MFG Partners for an undisclosed amount.
Storage Solutions, which was founded in 1978 as a distributor of new and used warehouse equipment, has 170 employees with its customers in the third-party logistics, e-commerce, retail, food and beverage and industrials sectors. Storage Solutions’ headquarters are at 910 E. 169th St. and has several other locations across the U.S
Officials with Jungheinrich said it will retain management of Storage Solutions following the competition of the transaction. Jungheinrich said in a news release that the acquisition of Storage Solutions 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 U.S. The market coverage of Storage Solutions will provide Jungheinrich with access to key logistics hubs in the U.S. and the opportunity to support the existing European customer base in this market,” the company stated in a release. “Acquiring a growth platform in the U.S. also provides additional mid-term potential to build a presence in the adjacent countries 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 forklifts market.”
Junghenrich officials said by combining the expertise and capabilities of both partners, it will “jointly drive the further development of innovative automation solutions.” Officials said that warehouse automation is a priority for customers both of Storage Solutions and Jungheinrich, with an expected global market growth of 10% from 2021 to 2025.
“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. Storage Solutions is a well-established and successful business with an attractive customer base and an excellent management team,” Jungheinrich CEO Lars Brzoska said. “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.”
The CEO of Storage Solutions, Kevin Rowles, also commented on the acquisition.
“The next level of growth in our industry will be driven by an increasing need for warehouse automation. Storage Solutions has established solid capabilities in racking as well as automation and digitalization which we are seeking to expand further, as demand is continuously accelerating on the back of strong underlying fundamentals,” Rowles said. “Together with Jungheinrich, we look forward to jointly capturing the upside for further growth.”
The completion of the acquisition is expected to take place in the second quarter of this year, officials said.