(Marchtrenk, Austria, 12 January 2021) TGW Logistics Group will sell certain of its US conveyor assets located 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 take effect in February 2021. Lincoln International guided TGW through the whole M&A process. KPMG acted as an Accounting and Tax Advisor and Goldberg Kohn Ltd acted as legal counsel to TGW. Financial terms for the transaction were not disclosed.
TGW made its entry into the US market more than 15 years ago with the acquisition of the material handling equipment producer Ermanco. Since then, the locally produced equipment has been used in projects throughout North America.
The specific requirements of the US conveyor assets conflicts with the global standardization strategy of the TGW Group, which focuses on the energy-efficient KingDrive® technology in the conveyor sector.
After a thorough analysis, TGW decided to sell the US conveyor assets. MHS represents a strategic investor which will integrate the product line into its existing portfolio, take over the associated employees and sustainably develop the business.
"With the sale, TGW is adjusting its strategic portfolio. We are pleased that with MHS we have selected a strategic investor who will further develop the North American team and be a reliable employer for the employees. This was particularly important to us throughout the entire process," emphasizes Harald Schröpf, CEO of TGW Logistics Group. "TGW can thus fully concentrate on the integration business with automated systems in North America – and thus on a growth market with great potential."
"TGW's conveyor material handling business in North America looks back on an impressive growth history of more than 50 years," underlines Scott McReynolds, CEO and co-founder of MHS. "The company brings with it a strong base. It is a fantastic addition to our portfolio and expands our existing capabilities."