MHS Buys TGW Conveyors Business
January 13, 2021
Holdings 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.
Financial terms for the transaction were not disclosed.
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.
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
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
PricewaterhouseCoopers acted as an Accounting and Tax Advisor and Kirkland &
Ellis LLP acted as legal counsel to MHS.