Siemens divests Dematic

By Corinne Kator, Associate Editor -- Modern Materials Handling, 6/15/2006

Siemens AG has divested its stake in Dematic, one of the world’s largest suppliers of automated materials handling equipment. This step concludes the realignment of Dematic, which started in September of last year, leaving it a stand-alone company.

Dematic’s new owner is Triton, a private European investment company that has some other logistics-related investments but none that are directly aligned with Dematic’s product line. The price of the sale was not disclosed.

The company will continue operating under the Dematic name. Johann Loettner will continue leading the company from its worldwide headquarters in Offenbach, Germany.

Dematic’s U.S. operations will remain headquartered in Grand Rapids, Mich., with Prashant Ranade at the helm as president and CEO. According to vice president of marketing John Raab, no layoffs or operational changes are planned. The company has “a new financial center,” says Raab, but little else has changed.

Raab estimates revenues of about $1 billion for Dematic in 2006. Last year, Dematic was part of Siemens Logistics and Assembly Systems, which also included Siemens’ electronics, postal and baggage handling businesses. Siemens Logistics and Assembly Systems reported revenues of $3 billion in 2005, placing it at the top of Modern’s most recent ranking of materials handling system suppliers.