FKI Logistex parent company sold to Melrose Plc. for $945 million
FKI Plc., the parent company of FKI Logistex, has been acquired by Melrose Plc., a London-based specialist manufacturing investor, for $945 million according to media reports.
By Jeff Berman, Group News Editor -- Modern Materials Handling, 4/24/2008
FKI Plc., the parent company of FKI Logistex, a provider of automated handling services, including sortation, conveyor systems and robotic, among others, has been acquired by Melrose Plc., a London-based specialist manufacturing investor, for $945 million according to media reports.
Along with FKI Logistex, FKI Plc.’s other corporate units focus on energy technology, lifting products and hardware.
According to a Bloomberg report, FKI was considering selling off some of its units to deal with debts of approximately $698 million. The report said that FKI had been in talks with various potential buyers prior to entering talks with Melrose. And it added that it is possible Melrose may sell some of FKI’s businesses to reduce its current debt.
Dan Hanrahan, president and CEO of The Numina Group, a Woodbridge, Ill.-based materials handling integrator and one of FKI Logistex’ 25 integrator partners that FKI goes to market with, said in an interview that there are a few different possibilities as to what may occur in regard to FKI Logistex in the coming months.
“My feeling is that they may integrate its energy/valve manufacturing group with FKI Logistex,” said Hanrahan. “I would also expect that within six months to a year we may hear of Melrose divesting FKI Logistex. It may either be diversified or set up as a stand-alone business with its own profit center.”
If the latter were to occur, Hanrahan said it may be a good thing for FKI Logistex if it were to become an independent entity. The reason for this, he said, is that it may give them an opportunity to refocus and not be a minority concern of a much larger corporate concern like FKI Plc.
In terms of how the materials handling competitive marketplace may be affected by this deal, Hanrahan said it is unlikely to have much impact, because FKI Logistex is a fairly lean organization and has consolidated operations in Missouri, Kentucky, and Ohio.
“I am assuming things will be business as usual for them in the short term with not much change happening,” said Hanrahan.
FKI Logistex officials declined to comment for this story.
FKI plc ranked No. 3 on Modern's list of Top 20 System Suppliers with $1.6 billion in world-wide revenue in 2007.
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