Dematic acquires SDI Group Europe

Dematic Group has announced the acquisition of FSU Investments Limited, which holds a majority stake in SDI Group Limited (SDI Group Europe). Dematic also announced its intention to make an offer for the remaining share capital.

The purchase of SDI Group Europe’s garment-on-hanger and flat sorter technology is intended to expand Dematic’s global order fulfillment offerings in apparel, retail and e-commerce markets. In a recent interview, Mike Khodl, vice president of solution development for Dematic, said the acquisition fills a gap where Dematic previously had to partner with another supplier.

“We can now focus on item-level and bag-level sortation as well as returns processing for e-commerce and retail,” Khodl said, emphasizing that client desire for omni-channel solutions is significant. “This shores that space up for us. A lot of omni-channel has to do with the software and less about the mechatronics. In this case, SDI Group Europe brings the mechatronic solution and Dematic brings fulfillment software for full warehouse control.”

The result, Khodl said, aligns nicely with what Dematic calls a “four walls, two windows” methodology, where software supports the view both upstream and downstream of execution within a facility. He added that although the level of automation will be very different in a rural Chinese facility and one on the east coast of the United States, the combination of Dematic’s and SDI Group Europe’s product portfolios can support projects throughout the world.

Headquartered in Royston, UK, SDI Group Europe provides components for order fulfillment including pouch sorters, pusher sorters, bomb bay sorters, garment-on-hanger technology, tilt tray/carton sorters and related services. Its proprietary sorter bag technology improves the efficiency of returns management by enabling both hanging and flat goods like shoes, toys, books and mobile phones to be carried on the same system.

“The combination of Dematic and SDI Group Europe enhances our focus on providing customers with critical industry solutions powered by a talented team of solution designers, project delivery and customer service specialists dedicated to the e-commerce and apparel markets,” stated Ulf Henriksson, Dematic President and CEO. Henriksson continued, “The addition of garment on hanger and flat sorter technologies, combined with a best in class returns processing solution, offers our customers a true single source modular, flexible and scalable solution provider and partner.”

In 1996, SDI Group Europe (previously Greenstone Automation) was founded in the UK by CEO Gordon Smith. 2006 saw the consolidation of SDI Group USA and SDI Group Europe before floating of the consolidated group on the AIM in 2007. Following a Management Buyout, the SDI Group was delisted in 2010, and SDI Group Europe and SDI Group USA legally split again. Dematic is acquiring SDI Group Europe, but the combined offering will be available to customers globally including the US.

Following the acquisition of SDI Group Europe, Andrea di Bella, currently the Managing Director for SDI Italy, Spain and Switzerland, will succeed Gordon Smith in the role of CEO, SDI Group Europe and take over responsibility for the business, working closely with the existing senior management team in UK, France, Italy, Spain, Germany, Switzerland, Benelux, Turkey and Poland. Gordon will remain in the business and act in a supporting role to Andrea during an initial transition phase.

“Andrea has a wealth of experience, having been with SDI Group for 17 years, and has been integral in the management and partnership of many customer projects over the years,” stated Henriksson.

“Dematic is at the forefront when it comes to automated technologies and software for the apparel, retail and e-commerce markets. We look forward to integrating our business into Dematic’s already strong global position and product and service offerings,” said di Bella.

All SDI Group Europe products and services, will be available through Dematic globally to current customers and prospects seeking to optimize their order fulfillment and distribution processes and solutions. In addition, the acquisition offers customers the combined strength of two customer service organization infrastructures positioned to deliver responsive and dependable automated technology and software support around the globe.

“As well as our extensive number of European customer sites, Dematic has over 2,000 customer sites in North America, and is committed to its customers as they strive for enhanced operational performance,” stated Henriksson. “The newly combined SDI Group Europe and Dematic offerings will be available to the market for all our new and existing North American customers along with our global customers under the Dematic brand.”