Canadian organizations buy European firms

by MM&D staff

WATERLOO AND TORONTO, Ontario—Dematic and Exentra Transport Solutions Limited will soon have new Canadian owners.

The Ontario Teacher’s Pension Plan, through its Teachers’ Private Capital investment arm, is teaming up with AEA Investors, a New York, New York-based private equity investing firm, to purchase Dematic from its current owner, Triton, a UK-based investment firm, which purchased the company from Siemens in 2006.

Headquartered in Luxembourg, Dematic manufactures storage, sortation, conveyor, picking, and transportation systems. The company employs 4,500 people worldwide, and has offices across Asia, Europe, and North America.

While the financial terms of the sale weren’t disclosed, as part of the transaction, approximately $573 million (€450 million) of outstanding bonds will be redeemed. Pending regulatory approval, the deal is expected to close by January 2013.

This week’s other Canadian-European takeover involves Waterloo, Ontario-based Descartes Systems Group and a UK-based logistics company.

Chippenham, England-headquartered Exentra Transportation Solutions Limited, which offers software-as-a-service (SaaS) truck driver compliance solutions for European-based companies, was sold to Descartes for approximately $17 million (£10.7 million) in an all cash deal. Exentra’s Smartanalysis platform analyzes tachograph data (speed, distance and driver activity).

The two companies have a prior business relationship as many of Exentra’s customers use Descartes’ Logistics Technology Platform.