Two leading systems suppliers to merge

Dematic says the acquisition of HK Systems should close in the third quarter of 2010.
By Modern Materials Handling Staff
August 04, 2010 - MMH Editorial

Dematic, a leading global supplier of integrated material handling solutions and services, announces it has signed an agreement in principle to purchase HK Systems, a North American automated material handling and software solutions provider. The transaction is expected to close sometime in the third quarter of 2010.

Complementary Expertise delivers more value to customers
The Dematic and HK Systems merger will result in a stronger and more responsive company providing added value and expanded solution portfolios for customers. The merger will leverage the complementary technical strength of both companies to bring high performance solutions to market.

“With the addition of HK Systems and its highly complementary market focus, Dematic will be able to provide customers throughout the world an enhanced solutions offering. We can now leverage our respective expertise and experience in serving the supply chain logistics market not only in North America but globally, to deliver added value to both existing and potential customers,” said Roar Isaksen, president and CEO of Dematic Group.

Both companies have a strong heritage for delivering value and both have long-standing expertise in designing, delivering and supporting comprehensive material flow solutions. The combined product portfolios and solution sets will offer customers a wider range of state-of-the-art material handling systems and services. Also, the combined companies will be able to provide an end to end solution footprint for a wider variety of market sectors from manufacturing to distribution.

“Customers are calling for integrated solutions that enable them to move products and information fast, reliably and efficiently through the supply chain,” said John Baysore, president and CEO of Dematic North America. “By combining the passion, creativity and technology of two synergistic companies, we will continue to drive innovations that help customers optimize their production and distribution operations.”

Leveraging the two organizations
Beyond the comprehensive technology, the acquisition will bring together the global engineering talent, customer focus and project execution expertise of two highly skilled teams. The two companies share a common vision and business strategy committed to delivering logistics solutions with a strong return on investment for customers.

“This merger is a great opportunity for the employees of HK Systems to become part of a worldwide corporation. HK Systems’ logistics capabilities and integration strength will give the joint organization expanded opportunities to grow in new vertical markets in North America and beyond,” said John Splude, executive chairman of HK Systems.



Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Intermodal volume was up 8.1 percent annually at 280,016 containers and trailers. This outpaced the week ending April 11 at 270,463 and the week ending April 4 at 271,127. AAR said this tally marks the second highest weekly output it has ever recorded as well as the first time container and trailer traffic was higher than carloads for a one-week period.

Ocean cargo carrier service reliability across the three core East-West trades hit a five-month peak in March with an aggregate on-time performance of 64 percent, according to Carrier Performance Insight, the online schedule reliability tool provided by Drewry Supply Chain Advisors.

The Airforwarders Association, which represents more than 360 companies that move air cargo through the supply chain, today applauded an agreement reached by Congressional leaders to advance legislation giving the President authority to conclude key global trade agreements.

Despite great opportunity for growth, the logistics market in Latin America is lagging behind other emerging markets thanks in part to its notoriety for corruption, violence, poor infrastructure and government bureaucracy.

About the Author

Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484 or email [email protected].

Comments

Post a comment
Commenting is not available in this channel entry.