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13. January 2021TGW’s US conveyor technology line is being taken over by MHS Holdings, Inc. With this sale, TGW is adjusting its strategic portfolio and is focusing entirely on the growing integration business in North America. MHS will take over the associated employees in Norton Shores and will sustainably develop the location.
(Marchtrenk, January 12, 2021) The TGW Logistics Group is selling its American conveyor technology line based in Norton Shores (Michigan) to Material Handling Systems, Inc. (MHS). The contract between the two companies has been signed, and the acquisition is expected to become legally effective in February 2021. Lincoln International guided TGW through the entire M&A process. KPMG acted as the auditing and tax advisor, and Goldberg Kohn Ltd. served as legal advisor for TGW. The purchase price has been kept confidential.
With the acquisition of the conveyor technology manufacturer Ermanco, TGW entered the important US market over 15 years ago. Since then, locally produced conveyor technology has been used in projects across North America.
Standardization in Conveyor Technology
The specific requirements of US conveyor technology have recently conflicted with the global standardization strategy of the TGW Group, which focuses on the energy-efficient KingDrive® technology in the conveyor technology sector.
After a thorough analysis, TGW decided to sell the US conveyor technology line. In an intensive process, a strategic investor has now been found in MHS, who will integrate the product line into its existing portfolio, take over the associated employees, and sustainably develop the location.
Focus on System Integration with Automated Systems
“With the sale, TGW is adjusting its strategic portfolio. We are pleased to have selected MHS as a strategic investor who will further develop the Norton Shores location and be a reliable employer for the employees. This was particularly important to us throughout the process,” emphasizes Harald Schröpf, CEO of the TGW Logistics Group. “This allows TGW to fully concentrate on the integration business with automated systems in North America – and thus on a growth market with great potential.”
“The TGW conveyor technology business in North America has an impressive growth story of over 50 years,” emphasizes Scott McReynolds, CEO and co-founder of MHS. “The company brings a strong foundation. It is a fantastic addition to our portfolio and expands our existing capabilities.”
Photo: © TGW
www.tgw-group.com www.mhsglobel.com
