FKI PLC, the parent company of materials handling system supplier FKI Logistex (www.fkilogistex.com), has agreed to be acquired by Melrose plc, a London-based specialist manufacturing investor.

According to a Bloomberg report, FKI had been in talks with various potential buyers prior to entering talks with Melrose. It's possible, the report adds, that Melrose may sell some of FKI's businesses to reduce its current debt.

Dan Hanrahan, president and CEO of The Numina Group (www.numinagroup.com), an Illinois-based systems integrator and one of FKI Logistex's 25 integrator partners, says he sees several possibilities as to what may happen with FKI Logistex in the coming months.

“My feeling is that [Melrose] may integrate [FKI's] energy/valve manufacturing group with FKI Logistex,” says 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.”

Becoming an independent entity could be a good thing for FKI Logistex, he says, as it may give the company an opportunity to refocus and not be a minority concern of a much larger parent like FKI plc.

For the time being, however, Hanrahan says he doesn't expect to see much change at FKI Logistex. “I'm assuming things will be business as usual for them in the short term,” he says.

Peter Counihan, president of systems integration firm Fortna (www.fortna.com), also believes it's possible Melrose will sell off FKI Logistex. And a sale, he says, has potential to change the competitive landscape in the conveyor market.

Counihan says there's currently too much capacity in the conveyor industry, but if FKI Logistex is bought by a competitor, he says, “we'll see more rationalization in the conveyor market.”

If the company is sold to a financial investor, however, the industry will likely remain as is, he says.

FKI Logistex officials declined to comment for this story.

FKI plc ranks No. 3 on Modern's list of Top 20 System Suppliers with $1.6 billion in world-wide revenue in 2007.