MHS global, a leading company that provides material handling automation technology and other system combinations will combine with Fortna, which is a leading provider of software and solutions for distribution and warehousing facilities. The companies are coming together in a collaboration to set up a multi-billion-dollar company competing with multinationals and providing warehousing & distribution, parcel services, deliveries and lifecycle services. Both MHS and Fortna belong to the same investment portfolio, Thomas H. Lee Partners (THL). THL is a premium equity firm that is a private investor in companies that are growing in the middle market. Even after the amalgamation of the two companies, THL will remain the majority owner of the combined multinational company and the subsidiary of ADIA, which stands for Abu Dhabi Investment Authority, will win a minority stake to support the combined company.
MHS is a leading company that provides material handling automation technology.
With the requirement for businesses to execute faster, the demand for automation and advanced operating solutions and software has also boosted. The combination of automation technologies provided by MHS and the operational optimization software of Fortna will serve the need for every solution in the logistics industry as the experience and network of both the companies will add value to the combination. This will also benefit the customers of the company through the breadth and depth that will be offered by both companies like the capabilities for leading the industry, optimization software, unique designs for operations, advanced automation, and cost savings for customers.
The CEO of MHS, Scott McReynolds has said that the company has built its reputation in the industry over the last 20 years by being a committed and reliable partner to the customers while it has always tried its level best to expand the potential and take progressive steps to deliver new products and solutions in the market. He also mentioned that the combination of MHS and Fortna will allow both the companies to boost their collective efforts and growth, which will also result in benefitting the employees, the customer as well as the suppliers.
Fortna, a leading provider of software and solutions for distribution and warehousing facilities.
McKeel will be given the post of CEO upon closing and McReynolds will become the President of the entire entity. The executive director of the Private Equities Department at ADIA, Hamad Shahwan Al Dhaheri has also commented on the combination saying MHS and Fortna are two major leaders in their respective industries and the combination of the two companies will surely create a remarkable platform for operations of the company to be able to deliver automation software and solutions to their customers.
THL’s managing director, Jim Carlisle and head of technology and business solutions and the THL Automation fund said that the company is currently looking forwards to working with a team that has great management skills and employees of Fortna and MHS, as they continue to bring excellence in automation of logistics. According to him, automation can solve many industry-wide challenges like shortage of labour and thus, can also help to meet the growing demand of the customers. Both MHS and Fortna are well situated in order to deal with challenges and unclose the opportunities that are beneficial for their customers.