MHS acquires TGW’s U.S. conveyors business

MHS, a leading provider of material handling automation solutions, engineering, equipment and software, announced today that it has entered into a definitive agreement to purchase certain assets related to TGW Systems, Inc.’s U.S. conveyor business unit, which operated separately from TGW’s U.S. integration business unit. The transaction is expected to close in February 2021.

Based in Norton Shores, Michigan, TGW U.S. Conveyors, formerly Ermanco, Inc., is a division of TGW Logistics Group. TGW U.S. Conveyors works across multiple distribution and fulfillment segments, including e-commerce, life sciences, food & beverage, and parcel freight & logistics. TGW U.S. Conveyors will help accelerate MHS’s product strategy and growth plan, according to MHS. TGW U.S. Conveyors will begin to operate under MHS Distribution + Fulfillment/MHS Conveyor as a division of MHS, and MHS plans to retain the TGW U.S. Conveyors employees post-close.

“We are thrilled to join the MHS family and partner with MHS to deliver market-leading automation solutions for our customer base,” said TGW U.S. Conveyors Managing Director Christian Lahnsteiner. “Our newly-expanded relationship with MHS gives us a platform to extend our product solutions to a larger set of customers while continuing to deliver the quality product that we have been known for.”

TGW U.S. Conveyors marks the latest in MHS’s series of acquisitions, following its purchase of eMotion Controls in early 2020.

“TGW U.S. Conveyors has an impressive history of growth that dates back more than five decades,” said MHS CEO and Co-Founder Scott McReynolds. “The company brings with it a strong employee base and leadership team. It also expands on our existing capabilities to serve the distribution and fulfillment market with a broader array of automation products and systems. TGW U.S. Conveyors is a fantastic addition to our growing portfolio and further positions us to take advantage of the tremendous opportunity that lies ahead for our company and industry. We are very excited to have Christian and his team join the MHS family.”

Harald Schröpf, CEO of TGW Logistics Group, added, “Two different conveyor product lines were at odds with our strategic orientation. It was important to us and we are therefore pleased to have found a strategic investor in MHS, who will continue the American division of the TGW Conveyor Business with all employees associated with this business. At the same time, our integration business unit, TGW Systems, Inc., will remain active in the North American market.”