Here are answers to your “frequently asked questions” regarding the acquisition of HK Systems by Dematic, and the subsequent integration of the two companies:
1. What are the reasons for the acquisition?
HK Systems and Dematic are both leading suppliers of advanced material handling solutions. With its strong common heritage and highly complementary businesses in terms of products, services and industries, HK Systems and Dematic management recognized the compelling value and strength of our combined organizations for our customers.
2. What is the long term vision and strategy for the combined company?
We believe that together, we will offer customers the best logistics solutions, material handling technology and service in the industry. With our combined products, larger installed base, diverse selling channels and complementary market focus, we intend to invest smartly in technology, people and infrastructure to better serve our customers.
3. What is the name of the new company? Will the name and brand HK Systems be kept?
The new company name will be Dematic with the exception of HK Logistics which will remain a stand-alone entity under the Dematic umbrella. We are in the process of developing a product branding strategy that maximizes the strong identities of both companies.
4. Where will the North American headquarters for the combined company be located?
Dematic, North American headquarters, will be in Grand Rapids, Michigan.
5. Is this an acquisition or a merger?
Dematic completed the acquisition of HK Systems on September 15, 2010. With the closing of this acquisition, HK Systems will become a wholly owned subsidiary of Dematic Group. HK Systems will become part of Dematic North America with the exception of HK Logistics which will be kept as a separate entity under the umbrella of Dematic.
6. Are all of the HK Systems operations included?
Dematic has acquired all of the operations of HK Systems located in North America.
This includes:
• Systems Integration business (including AGVS and ASRS)
• Convey and Sort business
• All engineering and manufacturing facilities across USA
• Customer Service, modernization & upgrades business
• HK Logistics (3PL)
7. What are the benefits of the combined company?
The combined company will offer customers a comprehensive and innovative spectrum of logistics solutions, material handling technology and service. Dematic expertise in case/tote and piece handling is now enhanced with HK’s expertise in pallet handling, storage and software.
8. How will HK Logistics fit into the new organization?
HKL is a separate and distinctly different business along the lines of a 3PL. HK Systems will become part of Dematic North America with the exception of HK Logistics which will be kept as a separate entity under the Dematic umbrella.
9. Who is on the executive management team?
Roar Isaksen is the Chief Executive Officer of Dematic Group and all of its subsidiaries. Dematic North America is headed by John Baysore as CEO. John Hines, President of HK Logistics (HKL), will report directly to Roar Isaksen.
10. What will be John Splude’s role?
After closing, he will become senior adviser to the Dematic Group, focused on the HK Logistics business. In addition, John Splude will be a member of the Dematic Group Board of Directors.
11. What will be Mike Gonzalez’s role?
After closing, Mike Gonzalez will be working directly with Roar Isaksen on integration and strategic issues for Dematic Group on a global level.
12. How will we ensure that our customers’ needs will be taken care of during the transition phase?
There will be no disruption in our customers’ dealings with us. Both companies will invest substantial time and effort to ensure this. Together we will form action teams from both companies to integrate key operations focused on maximizing synergies to better service customer needs. In the months to come, we will update you periodically as we continuously improve.
13. Will the products being used on customer projects change or be discontinued any time soon?
No. The products purchased by customers will be installed, supported and serviced as agreed in the contract.
14. Who is my account representative? Our account has been handled by a representative from Dematic and HK Systems. How will that change?
As we integrate the selling organizations, the first objective is to be responsive to your requirements. If you have an account manager from both Dematic and HK Systems, you may continue working with either representative; we will coordinate our efforts internally to accommodate in the interim. The account management consolidation will occur as the two companies are integrated.
15. I am interested in learning about the capabilities of the new combined company?
Please contact your account manager for an update on the solution portfolio of the new combined company or visit our existing websites (to be combined): www.dematic.us and www.hksystems.com
Furthermore, your account manager will be in contact with you to provide an update.
16. Will all existing contracts be fulfilled?
Yes, all existing projects will be fulfilled as contracted. Existing sales proposals remain valid.
17. Whom do I call for upgrades and modernization to existing HK and Dematic systems?
Please utilize your existing Dematic or HK Systems account representatives.
