Retrotech integrates warehouse and distribution solutions

The KION Group and its automation brand, Egemin Automation, have extended their North American presence by acquiring Retrotech, an established US systems integrator of warehouse and distribution solutions.

KION has signed an agreement to purchase the company, which is valued at around USD40 million. The transaction is subject to approvals and is expected to be completed in the first quarter of 2016.

Retrotech, based in Rochester in New York State, provides a wide range of solutions for integrating and modernising complex intralogistics systems. It specialises in systems design, customised warehouse control software, and stacker crane modernisation and retrofits to ensure that warehouse systems remain in good working order.

The company has around 140 employees and generated revenue of approximately USD70 million in 2015.

Retrotech will become part of Egemin Group Inc., based in Holland, Michigan, and be an operative part of Egemin Automation. The Retrotech brand will be retained and will continue to be used in the USA to represent high-quality warehouse and distribution solutions.

"Retrotech, with its excellent reputation and industry-leading expertise in the integration of intralogistics systems, is the perfect complement to strengthen the automation solutions currently being supplied by our brand company Egemin Automation in the USA," says Gordon Riske, chief executive officer of the KION Group. "This deal is an important step on our journey to becoming a leading player in the fast-growing market for automated logistics and material flow systems. Automated intralogistics will play a crucial role in Industry 4.0, the digital transformation of manufacturing."

Retrotech was founded in 1985 and initially focused on retrofitting hand pallet trucks and crane systems with automation solutions.