Swisslog buys Swedish manufacturer Accalon
May 17th 2007

Swisslog has purchased Accalon, a leading manufacturer of conveyor systems and stacker cranes for warehouses and distribution centers, for an undisclosed sum.

The company says the primary goal of the acquisition is to improve competitiveness in the market segment for less complex

projects.

"The acquisition of Accalon enables us to increase our competitiveness in the area of less complex projects, where conveyor systems and stacker cranes account for a large part of the added value. As a supplier of integrated logistics solutions we had to purchase the hardware components from third parties. This regularly left us at a competitive disadvantage in that market segment," Swisslog CEO Remo Brunschwiler explains.

Swisslog says the purchase of Accalon represents a major contribution to its Warehouse & Distribution Solutions division strategy, which offers innovative and economic logistics solutions for the whole range of automated warehouses and distribution centers. Swisslog expects the acquisition to advance the production of conveyor systems in China where Accalon already has a manufacturing site.

Swisslog also expects to achieve synergies in the Scandinavian customer support business.

Accalon has been successfully developing its business (stacker cranes, conveyor systems and related control systems) with other system integrators and intends to further promote this sales channel in the future. Boxholm-based Accalon employs 140 staff and achieved sales of about MCHF 55 in 2006.

The two companies already know each other well; Accalon used to be part of the Swisslog Group from 1994-2000. Business relationships remained close even after Accalon split up from Swisslog in late 2000 by means of a management buy-out: in fiscal year 2006, Swisslog accounted for roughly 70% of the former subsidiary's sales. The current management team will continue to lead the company, thus ensuring continuity at the top. Based on the common history and the long-term business ties, Brunschwiler expects a smooth integration of the two companies.

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