MHS Global, a provider of material handling automation technology and systems integration, and Fortna, software and solutions provider for warehouse and distribution, announced they are combining to form a single e-commerce and logistics company.
The two entities said they will form a “multi-billion-dollar, multinational company” providing parcel, warehouse, distribution and lifecycle services.
The companies belong to the investment portfolio of Thomas H. Lee Partners, L.P. THL will remain the majority owner of the combined company and a wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the combination, the companies announced.
“MHS has built its reputation over the past 20-plus years by being a reliable and committed partner while expanding our capabilities and taking a progressive, tech-forward stance to deliver new products and solutions,” said MHS CEO Scott McReynolds. “Combining with Fortna will allow us to accelerate our collective efforts on all fronts, to the benefit of our customers, employees, and suppliers.”
Fortna CEO Rob McKeel added: “Fortna has been a trusted advisor driving competitive advantage for our clients as they build direct-to-consumer models, increase service levels, and enable a lower cost to serve. The combination with MHS will enable the model to scale with our clients globally and allow the combined company to drive further innovation in operating models, software, and automation.”
Once the deal is final, McKeel will become the CEO and McReynolds will become the president of the combined entity.