S&P lowers KION to negative

S&P said it revised the outlook on KION Group AG to negative from positive.

The agency also said it affirmed the company’s BB+ long-term corporate credit rating.

The outlook revision follows news of KION's announced acquisition of a 100% stake in DH Services Luxembourg Sarl (Dematic), agreed with its financial sponsor owners, AEA Investors and Ontario Teachers' Pension Plan, for an expected purchase price of $2.1 billion based on an enterprise value of $3.25 billion for Dematic, S&P said.

The deal will enhance KION's position in intralogistics and extend its global reach, the agency said.

The acquisition is viewed as complementary in terms of products offering, geographic footprint and customer portfolio, S&P added.

KION's key credit metrics are likely to deteriorate following the transaction, the agency said.

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