MHS and Fortna join forces to become e-commerce, logistics leader

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LOUISVILLE, Kentucky, and ATLANTA – MHS Global, a global provider of material handling automation and systems integration technology, and Fortna, a provider of warehousing and distribution software and solutions, will partner to form a multi-billion dollar multinational corporation providing parcel, warehouse and distribution, and lifecycle services.

MHS and Fortna are part of the investment portfolio of Thomas H. Lee Partners, LP, a leading private equity firm that invests in middle-market growth companies. THL will remain the majority owner of the merged company and a wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the merger.

As businesses increasingly demand improved throughput and faster execution, there is an increased demand for automation, advanced operating software, and services. The combination of MHS automation technologies and Fortna’s operational optimization software, in addition to each company’s deep industry partnerships, addresses 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, transportation and sortation solutions combined with state-of-the-art orchestration and optimization software and to unique operational designs leveraging advanced automation to increase efficiency. and cost savings for customers.

“MHS has built its reputation over the past 20+ years on being a trusted and committed partner while expanding our capabilities and taking a progressive, forward-thinking stance to deliver new products and solutions,” said Scott McReynolds, CEO of MHS. “The combination with Fortna will allow us to accelerate our collective efforts on all fronts, for the benefit of our customers, employees and suppliers.”

“Fortna has been a trusted advisor that has delivered a competitive advantage to our customers as they build direct-to-consumer models, increase service levels and drive down service costs,” said Rob McKeel, CEO from Fortna. “Combining with MHS will allow the model to scale with our customers globally and enable the combined company to drive innovation in operating models, software and automation.”

Upon closing, McKeel will become CEO and McReynolds will become President of the combined entity.

Hamad Shahwan Al Dhaheri, Executive Director of Private Equity at ADIA, said, “MHS and Fortna are leading players in their respective industries, and their combination will create an important operating platform for the company to providing automation solutions to customers globally. scale. This transaction is part of our approach of investing alongside proven partners to support technology leadership. »

Jim Carlisle, Managing Director of THL and Head of both Technology & Business Solutions and the THL Automation Fund, said, “We look forward to working with the management teams and talented employees at Fortna and MHS as we continue to drive excellence in logistics automation. Automation solves industry-wide problems, such as labor shortages, and helps customers meet growing demand. Both companies are well positioned to meet these challenges and open up new opportunities for their customers. »

Carlisle will serve as Chairman of the Board of the combined company.

The transaction is subject to customary closing conditions and regulatory approvals. Terms were not disclosed.

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