Dematic, the global supplier of integrated material handling solutions and services, has signed an agreement in principle to purchase HK Systems, a North American automated material handling and software solutions provider. The transaction is expected to close sometime in the third quarter of 2010.
The Dematic and HK Systems merger will result in a stronger and more responsive company providing added value and expanded solution portfolios for customers. The merger will leverage the complementary technical strength of both companies to bring high performance solutions to market.
Roar Isaksen, President and CEO of Dematic Group, commented: "With the addition of HK Systems and its highly complementary market focus, Dematic will be able to provide customers throughout the world an enhanced solutions offering. We can now leverage our respective expertise and experience in serving the supply chain logistics market not only in North America but globally, to deliver added value to both existing and potential customers."
Both companies have a strong heritage for delivering value and both have long-standing expertise in designing, delivering and supporting comprehensive material flow solutions. The combined product portfolios and solution sets will offer customers a wider range of state-of-the-art material handling systems and services. Also, the combined companies will be able to provide an end to end solution footprint for a wider variety of market sectors from manufacturing to distribution.
"Customers are calling for integrated solutions that enable them to move products and information fast, reliably and efficiently through the supply chain", said John Baysore, President and CEO of Dematic North America. "By combining the passion, creativity and technology of two synergistic companies, we will continue to drive innovations that help customers optimize their production and distribution operations."
Beyond the comprehensive technology, the acquisition will bring together the global engineering talent, customer focus and project execution expertise of two highly skilled teams. The two companies share a common vision and business strategy committed to delivering logistics solutions with a strong return on investment for customers.
John Splude, Executive Chairman of HK Systems, said: "This merger is a great opportunity for the employees of HK Systems to become part of a worldwide corporation. HK Systems' logistics capabilities and integration strength will give the joint organization expanded opportunities to grow in new vertical markets in North America and beyond."
The acquisition, which is expected to close in the third quarter of 2010, is subject to customary closing conditions including regulatory approvals from relevant authorities in the United States.