MHS Global, a provider of materials handling automation technology and systems integration, and Fortna, a leading software and solutions provider for warehouse and distribution, will combine to form a multi-billion-dollar, multinational company, providing parcel, warehouse and distribution and lifecycle services. 

MHS and Fortna both belong to private equity firm Thomas H. Lee Partners, which will remain the majority owner of the combined company.

A wholly owned subsidiary of the Abu Dhabi Investment Authority will acquire a significant minority stake to support the combination.

According to a company statement, customers will benefit from the breadth and depth of both companies’ offerings: industry-leading capabilities in parcel, cross-docking, conveyance, and sortation solutions combined with industry-leading orchestration and optimisation software and unique operational designs leveraging advanced automation to drive greater efficiencies and cost savings for customers.

“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,” says 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 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,” says Rob McKeel, CEO of Fortna. “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.”

Upon closing, McKeel will become the CEO and McReynolds will become the president of the combined entity.