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MHS expands e-commerce fulfillment muscle with purchase of TGW unit

Kentucky company leverages private equity backing to acquire conveyor arm of Austrian firm as pandemic continues to fuel online shopping boom.

MHS conveyors pic

Material handling automation systems provider Material Handling Systems Inc. (MHS) has acquired the U.S. conveyors business arm of TGW Logistics Group, saying the move will help expand the company’s ability to serve the fast-growing e-commerce industry.

Terms of the deal were not disclosed, but the firms said the transaction is expected to close in February and MHS will continue employing all current employees at the unit.


MHS said it will purchase TGW U.S. Conveyors, a Norton Shores, Michigan-based unit formerly known as Ermanco Inc. That division works across multiple distribution and fulfillment end-markets, including e-commerce, life sciences, food & beverage, and parcel freight & logistics.

Mt. Washington, Kentucky-based MHS said the deal would help accelerate its product strategy and growth plan so it is best positioned to serve its growing customer base. The move marks the latest in a quick series of MHS acquisitions in the past three years, following its purchase of eMotion Controls in 2020. MHS itself was taken over in 2017 by the private equity firm Thomas H. Lee Partners L.P. (THL) in a move to surf the rising wave of demand for e-commerce fulfillment automation products.

“TGW U.S. Conveyors has an impressive history of growth that dates back more than five decades,” MHS CEO and Co-Founder Scott McReynolds said in a release. “The company brings with it a strong employee base and leadership team. It also expands on our existing capabilities to serve the distribution and fulfillment market with a broader array of automation products and systems.”

Austria-based TGW said the move would also help sharpen its own concentration on meeting market needs, while still allowing it to continue operating its integration business unit, TGW Systems Inc., in the North American market. "Two different conveyor product lines were at odds with our strategic orientation,” TGW CEO Harald Schröpf said in a release. “It was important to us and we are therefore pleased to have found a strategic investor in MHS, who will continue the American division of the TGW Conveyor Business with all employees associated with this business.”

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Logistics gives back: February 2025

Here's our monthly roundup of some of the charitable works and donations by companies in the material handling and logistics space.

  • For the sixth consecutive year, dedicated contract carriage and freight management services provider Transervice Logistics Inc. collected books, CDs, DVDs, and magazines for Book Fairies, a nonprofit book donation organization in the New York Tri-State area. Transervice employees broke their own in-house record last year by donating 13 boxes of print and video assets to children in under-resourced communities on Long Island and the five boroughs of New York City.
  • Logistics real estate investment and development firm Dermody Properties has recognized eight community organizations in markets where it operates with its 2024 Annual Thanksgiving Capstone awards. The organizations, which included food banks and disaster relief agencies, received a combined $85,000 in awards ranging from $5,000 to $25,000.
  • Prime Inc. truck driver Dee Sova has donated $5,000 to Harmony House, an organization that provides shelter and support services to domestic violence survivors in Springfield, Missouri. The donation follows Sova's selection as the 2024 recipient of the Trucking Cares Foundation's John Lex Premier Achievement Award, which was accompanied by a $5,000 check to be given in her name to a charity of her choice.
  • Employees of dedicated contract carrier Lily Transportation donated dog food and supplies to a local animal shelter at a holiday event held at the company's Fort Worth, Texas, location. The event, which benefited City of Saginaw (Texas) Animal Services, was coordinated by "Lily Paws," a dedicated committee within Lily Transportation that focuses on improving the lives of shelter dogs nationwide.
  • Freight transportation conglomerate Averitt has continued its support of military service members by participating in the "10,000 for the Troops" card collection program organized by radio station New Country 96.3 KSCS in Dallas/Fort Worth. In 2024, Averitt associates collected and shipped more than 18,000 holiday cards to troops overseas. Contributions included cards from 17 different Averitt facilities, primarily in Texas, along with 4,000 cards from the company's corporate office in Cookeville, Tennessee.