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Germany's Jungheinrich To Acquire U.S.-based Storage Solutions For $375 Mln

Jungheinrich AG, a German manufacturer of advanced materials handling equipment, announced Wednesday that it has signed a deal to buy Indiana-based Storage Solutions group for approximately $375 million.

The acquisition is expected to be earnings per share, free cash flow per share and adjusted EBIT margin accretive from the day of completion.

The binding share purchase agreement has been signed with Merit Capital Partners, MFG Partners and the management of Storage Solutions, a provider of racking and warehouse automation solutions in the U.S.

Along with the purchase price, the total consideration consists of a flexible, performance-based component in the mid to high single digit percentage range of the purchase price which can be achieved by the retained Storage Solutions management over three years following completion of the deal.

Jungheinrich said its executive board and supervisory board have approved the transaction, which is expected to complete in the second quarter of 2023, subject to customary closing conditions.

The acquisition will be financed with available cash and debt with limited leverage impact.

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