DEMATIC TO ACQUIRE HK SYSTEMS

Dematic has signed an agreement in principle to purchase HK Systems, the North American automated material handling and software solutions provider. Factors cited for the merger include the ability to offer customers a wider range of material handling systems and to serve a broader spectrum of market sectors.

"With the addition of HK Systems and its highly complementary market focus, Dematic will be able to provide customers throughout the world an enhanced solutions off ering. We can now leverage our respective expertise and experience in serving the supply chain logistics market not only in North America but globally, to deliver added value to both existing and potential customers," said Roar Isaksen, president and CEO of Dematic.

"Customers are calling for integrated solutions that enable them to move products and information fast, reliably and efficiently through the supply chain," said John Baysore, president and CEO of Dematic North America. "By combining the passion, creativity and technology of two synergistic companies, we will continue to drive innovations that help customers optimize their production and distribution operations."

The acquisition, which is expected to close in the third quarter of 2010, is subject to customary closing conditions including regulatory approvals from relevant authorities in the US.