HKW Acquires Handling Systems and Conveyors to Expand Industrial Growth Platform
HKW, a middle-market private equity firm specializing in investments in growth-oriented companies, has announced the acquisition of Handling Systems and Conveyors, Inc. (“HSC”). The transaction marks a strategic addition to HKW’s industrial portfolio and underscores the firm’s continued focus on businesses positioned to benefit from long-term trends in automation, productivity enhancement, and industrial modernization.
The acquisition reflects HKW’s commitment to partnering with technically specialized companies that serve resilient and expanding end markets. By bringing HSC into its portfolio, HKW aims to further strengthen its presence in the engineered industrial solutions sector while supporting HSC’s next phase of expansion.
About Handling Systems and Conveyors (HSC)
Founded in 1992, Handling Systems and Conveyors, Inc. has built a strong reputation as a vertically integrated provider of engineered material handling solutions. The company designs, manufactures, installs, and services a wide range of crane, hoist, conveyor, and tooling systems tailored to complex industrial environments.
HSC primarily serves customers across aerospace and defense, industrial manufacturing, and transportation markets—industries where precision, safety, and operational efficiency are critical. Its integrated business model allows the company to oversee projects from concept and engineering design through fabrication, installation, and ongoing service support. This end-to-end capability ensures quality control, streamlined execution, and long-term customer relationships.
Over more than three decades, HSC has developed deep technical expertise and a strong installed base of systems across North America. The company’s solutions are designed to improve workflow efficiency, optimize production lines, enhance worker safety, and support automation initiatives within manufacturing facilities. As industrial customers increasingly seek advanced in-plant material handling systems to meet productivity and throughput goals, HSC’s capabilities position it well to capitalize on these trends.
Strengthening Capabilities Through Strategic Partnership
According to Andy Everett, President and CEO of HSC, the partnership with HKW represents a significant milestone in the company’s evolution. He emphasized that aligning with a growth-focused investment partner will provide HSC with additional resources and strategic support while preserving the company’s commitment to high-quality service.
Everett noted that HKW’s investment will enable HSC to expand its operational capabilities and pursue new growth opportunities without compromising its core values or customer-centric approach. The company plans to leverage the partnership to enhance its technical offerings, broaden its geographic footprint, and continue delivering the dependable, high-performance solutions that its customers expect.
The leadership team at HSC views the acquisition as an opportunity to accelerate long-term strategic initiatives. With HKW’s backing, the company intends to invest in talent development, advanced technologies, and operational infrastructure to meet increasing demand across its target markets.
Alignment with HKW’s Investment Strategy
For HKW, the acquisition aligns closely with its established investment thesis. The firm focuses on lower middle-market businesses with strong technical capabilities, defensible market positions, and exposure to growing end markets. HSC’s specialization in engineered material handling systems fits squarely within this framework.
Devraj Roy, Partner at HKW, highlighted that HSC exemplifies the type of technical industrial business the firm seeks to support. He pointed to the company’s strong market position, differentiated engineering expertise, and exposure to sectors experiencing sustained demand for productivity enhancements and automation solutions.
As manufacturers continue to modernize facilities and invest in automation, the need for sophisticated in-plant material handling systems is expected to grow. HSC’s offerings directly support these initiatives by enabling safer, more efficient movement of materials and components throughout production environments. HKW believes these structural trends will provide long-term tailwinds for the business.
Capitalizing on Automation and Productivity Trends
Industrial companies across aerospace, defense, and manufacturing are under increasing pressure to enhance productivity, reduce downtime, and improve workplace safety. Automation and advanced material handling systems are central to achieving these objectives. HSC’s integrated crane, hoist, conveyor, and tooling solutions are designed to optimize workflows and reduce manual handling risks.
The company’s engineered systems not only improve operational efficiency but also help customers address labor shortages and evolving safety standards. With manufacturing environments becoming more complex, demand for customized, engineered solutions continues to rise. HSC’s ability to design and implement tailored systems gives it a competitive advantage in addressing these needs.
HKW sees substantial opportunity to further scale HSC’s capabilities in response to these industry dynamics. By providing capital, strategic guidance, and operational resources, HKW aims to support investments that strengthen HSC’s technology platform and expand its service offerings.
Expanding Service Penetration and Geographic Reach
Looking ahead, both HKW and HSC identify multiple avenues for growth. Alex Johnson, Vice President at HKW, emphasized that the company has a significant opportunity to expand service penetration across its existing installed base. Aftermarket services—including inspection, maintenance, upgrades, and retrofits—represent a recurring revenue stream and a critical component of long-term customer relationships.
By increasing service engagement with current customers, HSC can enhance lifecycle support while driving stable, predictable revenue growth. In addition, the company intends to invest in new geographic markets to extend its reach and better serve customers in key industrial hubs.
Strategic add-on acquisitions also form part of the growth strategy. HKW has experience executing buy-and-build strategies within technical industrial sectors and sees potential to complement HSC’s capabilities through targeted acquisitions. Such initiatives could expand product offerings, enhance regional presence, or add specialized technical expertise.
Building on a Strong Foundation
With a history spanning more than 30 years, HSC has established a strong operational foundation and a reputation for reliability in demanding industrial environments. Its vertically integrated model, experienced leadership team, and long-standing customer relationships provide a stable platform for future expansion.
HKW believes that by combining HSC’s technical strengths with additional capital resources and strategic support, the company can accelerate its growth trajectory. The partnership is expected to preserve HSC’s culture and customer-focused approach while equipping the organization to pursue new opportunities at scale.
As industrial markets continue to evolve, the collaboration between HKW and HSC positions the company to meet emerging challenges and capitalize on favorable industry trends. Together, they aim to enhance innovation, expand service capabilities, and drive sustainable long-term growth.
The acquisition ultimately reflects a shared vision between HKW and HSC: to build upon an established legacy of engineering excellence while advancing into the next chapter of strategic expansion and operational excellence.
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