Siemens buys Rapistan Systems, Mannesmann Dematic

Siemens has cleared the first hurdle in its planned takeover of Mannesmann AG, parent company of two U.S. divisions.

By -- Modern Materials Handling, 10/1/2000

The European Commission has given the green light to the takeover by Siemens AG of Mannesmann Dematic AG and its American subsidiaries Rapistan Systems and Mannesmann Dematic.

The deal was brought on by the recent acquisition of Mannesmann AG by Vodafone, a major mobile communications company.

Vodafone purchased Mannesmann for its telecommunications division with the stated intention of selling off its materials handling businesses.

"Siemens stepped forward and acquired Mannesmann Dematic and its subsidiary, Rapistan Systems, because automated materials handling systems technology fits into and complements Siemens image as a technology company," says Ken Ruehrdanz, manager of marketing communications at Rapistan Systems.

Mannesmann Dematic AG will be merged with Siemens Production and Logistics Systems Group. The new company will offer end-to-end supply chain solutions for distribution, manufacturing, postal and freight, and airport operations.

The merger will position Siemens as a world market leader in materials handling systems.

"Siemens strengthens with this acquisition its automation business. Especially in the context of e-business, logistics automation and IT will show growth rates above the industrial average. It is there that Siemens wants to participate," says Winfried Wittman, press office director for the Production and Logistics Systems Group at Siemens AG.

Final approval of the deal is required by The European Commission and the U.S. Federal Trade Commission, and is expected by the end of this year. Plans call for the new company to start operating as one organization on January 1, 2001.

Dr. Dietmar Straub will be the new CEO and is currently head of Mannesmann Dematic AG.

If approved, the new company will have sales of $3.8 billion and approximately 20,000 employees. Last year, Mannesmann Dematic AG had worldwide sales of $2.4 billion, making it the largest materials handling systems supplier in the world, according to Modern Materials Handling .

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