BREAKING NEWS: Intelligrated purchases FKI Logistex
The purchase creates an industry leader in automated materials handling systems and services.
Staff -- Modern Materials Handling, 5/28/2009
Intelligrated and FKI Logistex Group Limited announced today that they have signed a definitive agreement to combine the two businesses. Under terms of the agreement, Intelligrated will purchase the FKI Logistex operations in North and South America from Melrose plc, a UK-based specialist manufacturing investment group. The combined company will continue to manufacture and support its Crisplant brand loop sorters, Alvey brand palletizers, Real Time Solution fulfillment systems as well as other products and services traditionally offered by both Intelligrated and FKI Logistex.
The purchase creates an industry leader in automated materials handling systems and services. The April issue of Modern covered the Top 20 systems suppliers, which included FKI Logistex in the No. 7 position, with $784 million in revenue in 2008. Intelligrated missed the cut off, but reported an impressive $122 million in revenue.
"This exciting agreement brings together the talent and innovation of two market-leading companies that offer complementary material handling solutions and a shared focus on customer relationships," says Christopher Cole, chief executive officer and co-founder of Intelligrated.
James McCarthy, president, chief operating officer and co-founder of Intelligrated, says, "We believe that this combination creates strong opportunities for both our customers and our associates, as we offer broader solutions to better serve our valued clients, which will further accelerate our growth and development of innovative products."
With this purchase, the new Intelligrated will become a leading materials handling systems provider to the warehouse, distribution, postal and consumer goods manufacturing markets. Intelligrated will maintain its headquarters in Cincinnati and will have sales offices and operations in 10 states, including sizeable operations in Canada and Mexico, and manufacturing plants in Ohio, Missouri and Kentucky. Intelligrated will also have key systems operations in California and Maryland.
"This agreement signals a new era for us all, bringing together our respective resources, technologies and expertise, becoming the leading single-point provider of automated material handling solutions," says Stephen Ackerman, president of FKI Logistex, who is continuing in a senior leadership role in the combined company. "Importantly, our customers will remain our top priority as we seek to execute a seamless transition."
Intelligrated is privately owned by Gryphon Investors, its majority shareholder, Tudor Ventures and Management.
David Andrews, president and managing general partner of Gryphon, says, "Through strong organic growth, one previous acquisition and this exciting combination with Logistex, Intelligrated is now positioned as the clear industry leader. Gryphon looks forward to working proactively with management of both companies to achieve exceptional growth and value for all shareholders."
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