With an annual turnover of 300 million euros, the company has 1,300 employees and an operating result (Ebitda) of around 70 million euros.
Photo: Körber AG
Düsseldorf, Frankfurt The US financial investor KKR takes a minority stake in Körber Supply Chain to support the growth of the supply chain software company with advice and financial strength. The company, which belongs to the mechanical engineering company Körber AG, is valued in the deal with more than 1.5 billion euros including debts, it was said in financial circles.
According to Gartner market analysts, Körber Supply Chain is one of the top three manufacturers of software for warehouses and logistics companies. Online retailer Zalando and the fashion chain Mango are among the customers.
With an annual turnover of 300 million euros, the company has 1,300 employees and an operating result (Ebitda) of around 70 million euros. Consumers come into direct contact with software from Körber Supply Chain, for example, when parcel carriers ask for receipt of a shipment to be confirmed with a signature.
“Many warehouses today still work manually or semi-automatically,” says the head of Körber AG, Stephan Seifert, in an interview with Handelsblatt. In view of trends such as the rapidly growing online trade, Körber Supply Chain wants to invest in growth with the help of KKR, be it organically or through acquisitions. This involves, for example, an expansion of the offering, which is focused on warehousing software, through acquisitions in the areas of transport, logistics, e-commerce and planning.
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According to corporate circles, Körber Supply Chain has already defined a list of possible takeover targets, above all American logistics software companies, for which the company plans to spend a good two billion euros in the next two years.
Körber CEO estimates supply chain software market at 16 billion US dollars
“The next big step for us will be to become the global champion in supply chain software,” says Seifert. He puts the fragmented global market at 16 billion US dollars, with Manhattan Associates, Blue Yonder, which was acquired by Panasonic in April, but also SAP and Oracle among the leading providers.
“Software currently accounts for around 20 percent of the Group’s business. By 2025 it should be well over a third for the entire group. “
Körber AG currently has cash of 1.5 billion euros and therefore does not necessarily need an investor like KKR financially. But Seifert would like to use the investor’s expertise and bring his mindset into the company. It is also about making the medium-sized company fit for the future. “We are convinced that an industrial company cannot survive in 2025 with today’s technology stack and today’s business model,” says the Körber boss.
KKR has already accompanied numerous German companies, such as the aroma manufacturer Wild, armaments supplier Hensoldt, the shampoo brand Wella or the media company Axel Springer, and in doing so has earned a reputation as a qualified sparring partner for owners and management.
KKR Germany boss Christian Ollig already sees Körber as a pioneer in terms of innovative strength: “Körber set the course for digitization in the supply chain area, but also on the classic industrial side,” says Ollig. That made the participation so interesting for his company.
After a few years, KKR usually exits again – be it through a resale like Wild or an IPO like Hensoldt. KKR is currently examining options for its participation in market researcher GfK. An IPO is also conceivable at Körber in the medium term.
By 2025, Körber wants to generate more than a third of its sales with software
At Körber AG, supply chain is only one of five business areas. Investments are also conceivable, particularly in the areas of machines for pharmaceutical production and machines for the production of toilet paper. The KKR investment in the Körber Supply Chain gives Körber AG financial flexibility elsewhere.
The owner of Körber AG, the non-profit Körber Foundation, cannot provide any funds for an aggressive expansion strategy of the company, on the contrary: It uses the dividends to finance projects on topics such as “Age and Demography” and “Democracy, Commitment and Cohesion “.
The head of KKR Germany sees Körber at the fore when it comes to innovation.
(Photo: Bert Bostelmann for Handelsblatt)
Software is to be a stronger focus at Körber AG in the future. “Software currently accounts for around 20 percent of the Group’s business. By 2025 it should be well over a third for the entire group, ”says Seifert. In doing so, Körber Supply Chain benefits from the fact that the company is not industry-specific.
Legal requirements such as the Supply Chain Act passed in June and the requirements for the environment, social affairs and good corporate governance (ESG) provide additional impetus for business. “With our software, customers can track the supply chain end-to-end from production to the end customer,” says Seifert.
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