Technology-Forward Global Leaders in Automation
Dematic is a leading global supplier of advanced integrated automation technology, software and services to optimize supply chains for customers in the direct distribution / e-Commerce, general merchandise retail, apparel retail, grocery retail & food service and wholesale (B2B) industries. The company plans, designs, manufactures, implements and services a full range of highly configurable and tailor-made automated logistics and materials handling system solutions which enable customers to optimize their warehousing and distribution operations to meet increasingly complex demands of e-commerce, same day delivery, and just-in-time retail fulfillment.
AEA’s Middle Market Private Equity (“MMPE”) fund identified Dematic as the leading global player in a large market with robust growth trends driven by e-commerce, increased automation, SKU proliferation and rapid, omnichannel delivery to satisfy consumer purchasing needs. During the ownership period, AEA MMPE re-headquartered the business in the U.S. from Europe and recruited a new CEO and CFO along with other key regional and functional leadership positions. In partnership with management, AEA MMPE made significant investments in Dematic’s software and R&D capabilities, including executing several software acquisitions. In addition, AEA MMPE worked with management to establish a globalized organizational structure to better leverage economies of scale, best practices and low-cost country sourcing. Under AEA MMPE’s ownership, the team re-positioned a former division of Siemens into a technology-forward global leader that significantly outgrew the market.
Strategic acquisitions to gain key technology solutions, including software
Global position in key end markets including e-commerce, food & beverage, apparel and general merchandise
Outpaced the competition with over 4x the R&D investment (50% increase during AEA ownership), with the majority focused on software and software-enabled technologies
“I have had the pleasure of working with AEA for nearly 20 years and in that time have served on multiple portfolio company boards. AEA’s sector focus and global capabilities truly helped transform Dematic. They recognized from the outset the tremendous growth potential from warehouse automation driven by e-commerce. They capitalized on Dematic’s position as the global leader to further its differentiation by significantly increasing R&D investment, especially in software, as well as building out low-cost country engineering and manufacturing centers of excellence to enhance the customer value proposition. Dematic was truly a different, and more valuable, company at exit.”