M&A: Kannegiesser USA and E-Tech Join Forces
(l/r) Phil Hart, president of Kannegiesser USA stands with E-Tech owner, President Joe Schult following the merger announcement.
Kannegiesser USA, Grand Prairie, TX, recently entered into an agreement to purchase E-Tech Inc., Minneapolis. The new company, Kannegiesser ETECH, will begin merged operations immediately, according to a news release.
Martin Kannegiesser, CEO of Herbert Kannegiesser GmbH, the parent company of Kannegiesser USA, recently signed the agreement with E-Tech owner Joe Schult. The merged company will focus on the North American market, bringing completely integrated automated equipment solutions for laundry operators.
Kannegiesser is a well-known brand worldwide with washing, finishing and uniform processing systems. The E-Tech product line of eRail monorail and conveyor solutions, as well as its eVue software will complement Kannegiesser’s laundry processing equipment. “In the future, the integration of machine technology with logistics and conveyor technology will continue to gain in importance, which is why we need a strong North American team on site,” Martin Kannegiesser said.
The Kannegiesser ETECH headquarters will be in Minneapolis, and the company will have a sales and service support office in Dallas. The combined company will be led by CEO Phil Hart, and Schult will serve as COO for Kannegiesser ETECH.
“This decision to invest in a manufacturing facility in North America is both a representation of the dedication to our market, and a testament to the quality of E-Tech’s design and manufacturing in Minneapolis,” Hart said.
Herbert Kannegiesser GmbH is the world’s largest manufacturer of equipment for the industrial laundry sector. The company, based in Vlotho, Germany, generated sales of over $330 million in 2015, operates in 53 countries and employs more than 1,600 people worldwide, with approximately 190 employees in North America.