Material Handling Systems (MHS) and Fortna, both under the investment portfolio of Thomas H. Lee Partners, L.P., will join together during a time of numerous other mergers, investments and acquisitions in the supply chain as the industry undergoes a transformation. The two will make a multi-billion dollar company that focuses on numerous aspects of warehousing and logistics such as parcel, warehouse and distribution, and lifecycle services. Fortna CEO Rob McKeel takes the place of CEO of the combined company while MHS CEO Scott McReynolds becomes president.
- As businesses increasingly require improved throughput and faster execution, there is heightened demand for automation, advanced operating software and services. The combination of MHS’s automation technologies and Fortna’s operational optimization 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 the breadth and depth of both companies’ offerings: industry-leading capabilities in parcel, cross-docking, conveyance, and sortation solutions combined with industry-leading orchestration and optimization software and unique operational designs leveraging advanced automation to drive greater efficiencies and cost savings for customers.
- This transaction is subject to customary closing conditions and regulatory approvals. Terms of the transaction were not disclosed.
“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,” says MHS CEO Scott McReynolds. “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,” says Rob McKeel, CEO of Fortna. “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.”