The combination of two German-based multinational companies has resulted in the creation of the world's largest supplier of materials-handling and logistics automation systems. Last month, the international electronics and electrical engineering company Siemens, based in Munich, Germany, acquired Mannesmann Dematic of Wetter, Germany, which owned the U.S.-based materials-handling company Rapistan Systems.

Under the deal, Mannesmann Dematic and Rapistan will merge with Siemens Production and Logistics Group. The new entity, called Siemens Dematic, will have annual sales of $4.2 billion and approximately 21,000 employees.

The former Rapistan Systems organization will now become part of the Material Handling Automation Division of Siemens Dematic. Other divisions of Siemens Dematic manufacture postal automation systems, electronics assembly systems, cranes and hoists, and mobile cranes. World headquarters for the Material Handling Automation Division will be in Grand Rapids, Mich.

The acquisition will allow the materials-handling provider to take advantage of Siemens' engineering capabilities to offer a broader array of services. Says Siemens Dematic spokesman Michael Kramp, "The acquisition will make us more a systems integrator and turnkey provider of materials-handling solutions."