MHS and Fortna to form global logistics automation company
MHS Global, a global provider of material handling automation technology, and Fortna, a software and solutions provider for warehouse and distribution, will join forces to form a multi-billion-dollar, multinational company providing parcel, warehouse and distribution, and lifecycle services.
MHS and Fortna belong to the investment portfolio of Thomas H. Lee Partners, L.P. (“THL”), a private equity firm investing in middle market growth companies. THL will remain the majority owner of the combined company while a wholly owned subsidiary of the Abu Dhabi Investment Authority (“ADIA”) will acquire a significant minority stake to support the combination.
“As businesses increasingly require improved throughput and faster execution, there is an increased demand for automation, advanced operating software and services,” MHS Global explained.
The combination of MHS’s automation technologies and Fortna’s operational optimisation software, in addition to each company’s deep industry partnerships, serves the need for end-to-end solutions in logistics operations.
Customers will benefit from both companies’ offerings: industry-leading capabilities in parcel, cross-docking, conveyance, and sortation solutions combined with industry-leading orchestration and optimisation software and unique operational designs leveraging advanced automation to drive greater efficiencies and cost savings for customers.
“MHS has built its reputation over the past 20-plus years by being a reliable and committed partner while expanding our capabilities and taking a progressive, tech-forward stance to deliver new products and solutions,” MHS CEO Scott McReynolds, said. “Combining with Fortna will allow us to accelerate our collective efforts on all fronts, to the benefit of our customers, employees, and suppliers.”
“Fortna has been a trusted advisor driving competitive advantage for our clients as they build direct-to-consumer models, increase service levels, and enable a lower cost to serve,” Rob McKeel, CEO of Fortna, said. “The combination with MHS will enable the model to scale with our clients globally and allow the combined company to drive further innovation in operating models, software, and automation.”
Upon closing, McKeel will become the CEO and McReynolds will become the President of the combined entity. The transaction is subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed.
Headquartered in Louisville, Kentucky, with about 3,000 employees globally, MHS provides automated material handling systems, solutions, software, and products to leading customers’ fulfillment, distribution, and logistics operations. It has operations across North America, Europe, and Asia. MHS has a global installed base of over $6.5 billion for parcel and distribution and fulfillment projects, from small to large, in a variety of industries, including e-commerce, parcel, third party logistics, and outside integrators.
Fortna partners with the world’s leading brands to transform their distribution operations. It designs and delivers intelligent solutions to optimise fast, accurate, and cost-effective order fulfillment.