Commanding moves
C.S. Johnson + Ross Co., Oshkosh Truck Corp. + McNeilus Cos., Besser Co. + International Pipe Machinery Corp., and Rexworks + T.L. Smith Machine. We see a recurring tactic among manufacturers in concrete production and delivery equipment: Two mainstays merge or are brought into bigger corporate families in the name of synergy, economy of scale or brand extension.
The consolidation train has not stopped with the iron contingent. Late last year, Command Data Inc. and Alkon Corp. reported a merger agreement and formation of Command Alkon. The private entity will be based at Command Data's Birmingham, Ala., headquarters, with ownership split among six principals who had held stakes in the two companies. Command Alkon will have 300+ employees in Birmingham, Dallas (Command Data) and Dublin, Ohio (Alkon headquarters) offices, plus four European and Asian locations.
"Our companies have been competitors in certain market segments for a long time. This merger will allow the resources of both companies to be concentrated on customers and product development," notes Command Alkon President and CEO Ken Robinson, who founded Command Data in 1976 and is the new entity's largest shareholder. "Command Alkon will bring new products to the market faster and position us to focus more on creating value for customers."
"We can combine like products and services, while also addressing the growing interest in enterprise solutions," adds Alkon President Greg Miller. "With the popularity of the Internet, companies are now able to link to and work closer with customers and suppliers. Command Alkon can deploy the proper resources to bring this capability to producers of construction materials, regardless of the size of their business. Our ability to develop products and offer strong professional services expertise represents a new growth area for our market."
On the subject of professional services, he affirms that Command Alkon can deliver information technology support that concrete producers might otherwise seek from Big Five consulting firms. Under the merger terms, Miller has assumed the role of executive vice president of Enterprise Solutions within Command Alkon. He and an investor group acquired Alkon in early 1998. A year later they purchased central Ohio rival Auto-Control, strengthening their customer base and extending Alkon technology, including its microwave moisture controls, to an established equipment dealer network.
At the same time, Alkon was forging ahead with its Enterprise series, creating plant control and administrative software packages in open-environment Microsoft products. This afforded functionality between Alkon and Auto-Control offerings and broader market "enterprise resource planning" systems from companies like Oracle and SAP. Miller and his counterparts see Enterprise Solutions, which will remain in Ohio, as instrumental in allowing Command Alkon to address two main customer segments: 1) independent and regional producers, who might be best served with plant control, transportation support and administrative software, and 2) larger, typically multinational players who require production and fleet management programs that integrate with their ERP systems.
Command Data and Alkon's batching control and vehicle dispatch, scheduling, and tracking technology is represented in 5,000+ ready-mix and manufactured-concrete sites throughout North America. While there have been bigger ticket moves among equipment manufacturers, the Command Alkon union stands to touch more producers than any transaction to date.
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