Dematic intends to acquire HK Systems
Acquisition is expected to close during Q3.
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This afternoon, Dematic announced that it has signed an agreement in principle to acquire HK Systems. The transaction is expected to close sometime during the third quarter of 2010.
The combined companies would generate about $1.2 billion, based on the 2009 revenues both companies reported to us for our annual look at the Top 20 Systems Suppliers, published in May. Dematic was the number 3 provider worldwide with $1 billion. The combined companies would still rank below Daifuku, which reported about $1.76 billion.
Roar Isaksen, president and CEO of Dematic Group, sent out an e-mail this afternoon announcing the agreement. “We are very excited about this significant development,” he wrote. “The opportunity to bring these companies together is extremely positive. Combining two successful companies like Dematic and HK Systems means we will be able to achieve extraordinary business results for our customers and our employees.”
Isaksen continued that the merger will leverage the complementary technical strengths of both companies and bring together two players with strong engineering talent, a common vision and a common business strategy of delivering logistics solutions with a strong return on investment.
Neither company was available for comment, but I hope to have a one-on-one - or a two-on-one - briefing for a blog later this week or next.
About the AuthorBob Trebilcock Bob Trebilcock, editorial director, has covered materials handling, technology, logistics and supply chain topics for nearly 30 years. In addition to Supply Chain Management Review, he is also Executive Editor of Modern Materials Handling. A graduate of Bowling Green State University, Trebilcock lives in Keene, NH. He can be reached at 603-357-0484.
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