Consolidation, partnerships, and business-unit transfers have continued as the warehouse automation market seeks growth amid economic challenges. Matthews International Corp. last week said that it has agreed to sell its warehouse automation business, part of its Industrial Technologies segment, to Duravant LLC for $230 million.
“This transaction is a direct outcome of the strategic alternatives evaluation, reflecting our commitment to unlocking shareholder value and further reducing our debt toward our long-term net leverage ratio goal of 2.5x,” stated Joseph C. Bartolacci, president and CEO of Matthews International.
Founded in 1850, Matthews International has two core businesses: industrial technologies and memorialization. The Industrial Technologies segment evolved from its original marking and printing business. The Pittsburgh-based company‘s Memorialization segment supplies memorials, caskets, and cremation and incineration equipment, primarily to cemetery and funeral home customers.
In addition, Matthews International has a significant investment in Propelis, formed through the merger of SGK and SGS & Co. Propelis delivers brand creative, packaging, print solutions, branded environments, and content production. Matthews said it has more than 5,400 employees in 19 countries.
Save the date for the 2026 Robotics SummitDuravant to add material handling, fulfillment to its portfolio
Matthews Automation Solutions offers the NEXUS warehouse execution system (WES), pick-to-light products, mobile robots, controls engineering, and integration services. In September, it acquired an automated storage and retrieval system (ASRS) from Freespace Robotics.
Matthews said its Pyramid, Compass, Nexus, and Lightning Pick brands are intended to help optimize material handling and order fulfillment for omnichannel, e-commerce, and warehouse operations.
“We are pleased to welcome Matthews Automation Solutions to Duravant,” said Mike Kachmer, chairman and CEO of Duravant. “The software and controls integration expertise the team brings to Duravant is exceptional. They have a reputation for delivering high-quality service and support, which aligns perfectly with Duravant’s dedication to ensuring customer success.”
Duravant said the unit, which represents a strategic acquisition, operates its software development, project management, and operations hubs in Cincinnati and Pewaukee, Wis. It added that team’s expertise will enhance its product portfolio delivered through operating companies FMH Conveyors, NPI, QC Conveyors, and Motion06.
The company asserted that the addition of WES and warehouse control systems (WCS) technologies will allow it to provide comprehensive and efficient solutions to clients in e-commerce, retail, parcel, and logistics sectors.
“There is increasing demand and urgency from our customers to design warehouse systems that meet their ever-increasing productivity needs,” said Raman Joshi, group president of Duravant Material Handling. “By bringing software and control systems in-house, we can broaden and strengthen our offerings to Integrator clients and deliver end-to-end integrated warehouse lines faster and more efficiently.”
Duravant provides automation for the food processing, packaging, and material handling industries. Founded on more than a century of expertise, the company serves markets including food and beverage, agriculture, consumer and industrial goods, e-commerce, and logistics. Downers Grove, Ill.-based Duravant said it has customers in more than 190 countries.
J.P. Morgan helped Matthews find Duravant
Under the terms of the agreement, Matthews said it will receive total consideration of $230 million, representing cash consideration of $223.3 million plus the assumption of certain liabilities of the business. The company said the total purchase price “represents a compelling valuation multiple that is significantly accretive to Matthews’ current trading range.”
Matthews Warehouse Automation generated sales of $72 million for fiscal 2025. J.P. Morgan Securities LLC is serving as financial advisor and K&L Gates is serving as lead transaction counsel for Matthews International.
“Following this announcement, the company’s strategic alternatives review to enhance shareholder value creation remains ongoing,” added Bartolacci. “J.P. Morgan conducted an extensive process for the Warehouse Automation business and, as a result, we determined that Duravant delivered the best value for our shareholders and provides a strong platform for the continued growth of this business.”
The transaction is subject to regulatory approval and is expected to close before the end of Matthews’ fiscal 2026 second quarter in March.
