Dematic to buy HK Systems

by Array

Dematic has signed an agreement in principle to purchase North American automated materials handling and software provider HK Systems.

The deal is expected to close in the third quarter of 2010, subject to regulatory approvals from US authorities.

According to Dematic, the two companies have complementary technical strengths. The combined company is meant to provide an end-to-end solution in a broader range of market sectors.

“We can now leverage our respective expertise in serving the supply chain logistics market not only in North America, but globally, to deliver added value to both existing and potential customers,” said Roar Isaksen, president and CEO of Dematic Group.

John Splude, executive chairman of HK Systems, said the merger offers his company’s employees a “great opportunity” to be part of a worldwide corporation.

“HK Systems’ logistics capabilities and integration strength will give the joint organization expanded opportunities to grow in new vertical markets in North America and beyond,” he said.

The financial terms of the deal have not been disclosed.