Mt. Washington, Kentucky, Jan. 11, 2021 -- MHS Holdings, Inc. (“MHS” or the “Company”), a leading global provider of advanced material handling automation solutions, engineering, equipment and software, announced today that it has entered into a definitive agreement to purchase certain assets related to TGW Systems, Inc.’s U.S. conveyor business unit, which operated separately from TGW’s U.S. integration business unit. The transaction is expected to close in February 2021.
Based in Norton Shores, Michigan, TGW U.S. Conveyors, formerly Ermanco, Inc., is a division of TGW Logistics Group. TGW U.S. Conveyors works across multiple distribution & fulfillment end-markets, including e-commerce, life sciences, food & beverage, and parcel freight & logistics. TGW U.S. Conveyors will help accelerate MHS’s product strategy and growth plan so that MHS is best positioned to serve its growing customer base. TGW U.S. Conveyors will begin to operate under MHS Distribution + Fulfillment/MHS Conveyor as a division of MHS, and MHS plans to retain the TGW U.S. Conveyors employees post-close.
“We are thrilled to join the MHS family and partner with MHS to deliver market-leading automation solutions for our customer base,” said TGW U.S. Conveyors Managing Director Christian Lahnsteiner. “Our newly-expanded relationship with MHS gives us a platform to extend our product solutions to a larger set of customers while continuing to deliver the quality product that we have been known for.”
MHS was founded in 1999 and now generates more than $1 billion of revenue as they deliver automation solutions for the world’s largest logistics providers and e-commerce retailers. In April 2017, the Company’s founders led MHS through a recapitalization in partnership with Thomas H. Lee Partners, L.P. (“THL”), followed by a series of acquisitions that expanded the Company’s global footprint, capabilities and product and service lines.
TGW U.S. Conveyors marks the latest in MHS’s series of acquisitions, following its purchase of eMotion Controls in early 2020.
“TGW U.S. Conveyors has an impressive history of growth that dates back more than five decades,” said MHS CEO and Co-Founder Scott McReynolds. “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. TGW U.S. Conveyors is a fantastic addition to our growing portfolio and further positions us to take advantage of the tremendous opportunity that lies ahead for our company and industry. We are very excited to have Christian and his team join the MHS family.”
Harald Schröpf, CEO of TGW Logistics Group, added, "Two different conveyor product lines were at odds with our strategic orientation. 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. At the same time, our integration business unit, TGW Systems, Inc., will remain active in the North American market.”
PricewaterhouseCoopers acted as an Accounting and Tax Advisor and Kirkland & Ellis LLP acted as legal counsel to MHS. Financial terms for the transaction were not disclosed.
About Material Handling Systems, Inc.
Founded in 1999, MHS Global is a full-service provider of innovative material handling systems that solve the challenges of distribution and fulfillment operations. We take a comprehensive, customer-centric approach that includes custom engineering, design, manufacturing and turnkey integration services. Our quality solutions leverage a broad range of controls and automated equipment, including but not limited to sorters, conveyors, extendable loading and unloading systems. We provide complete, responsive support to maintain systems for peak performance, with predictive analytics and local technicians to maximize long-term value and return on investment.
MHS has a global installed base of over $5 billion for small to large distribution and fulfillment projects in a variety of industries, including e-commerce, parcel, third party logistics and outside integrators.
About TGW Logistics Group
TGW Logistics Group is one of the leading international suppliers of material handling solutions. For more than 50 years, the Austrian specialist has implemented highly automated systems for its international customers, including brands from A as in Adidas to Z as in Zalando. As systems integrator, TGW plans, produces and implements complex logistics centers, from mechatronic products and robots to control systems and software. TGW Logistics Group has subsidiaries in Europe, China and the US and more than 3,700 employees worldwide.