CMS Software Inc., a Toronto-based supplier of enterprise resource planning systems, has purchased Mattec Corp. (Booth S532) in a deal that creates "seamless integration" between Mattec's production-monitoring and shop-floor-control products and the ERP offerings of CMS, the companies announced June 9.
Earlier this year, Loveland, Ohio-based Mattec and CMS formed a partnership to work together. The deal solidifies the relationship by forming a unified organization, said Mattec President Mick Thiel.
"We will be operating as two independent companies that service the same manufacturing companies," Thiel said. Thiel, who founded Mattec in 1983, continues as Mattec president. Rudy Joss will remain president of CMS.
Officials from both companies are at NPE 2006, at Mattec's booth.
Terms of the deal were not disclosed.
Thiel declined to give sales numbers, but he said the combined companies employ more than 150 people. CMS has ERP installations in more than 2,500 manufacturing sites worldwide. Mattec products run in about 800 plants around the world. The customer base of the combined firms covers more than 20 countries.
The two companies will maintain distinct identities as well as their existing sales and support people. Mattec will continue to run out of its facility in Loveland, near Cincinnati.
Thiel said the need for large global ERP and production-monitoring suppliers drove the deal. Bigger manufacturers need bigger suppliers, he said in a telephone interview June 14.
"We intend to be a dominant supplier into the plastics marketplace and the supply-chain-intensive marketplace" of Tier 1 and Tier 2 suppliers and companies that need advanced distribution systems, Thiel said.
CMS has facilities at its Toronto headquarters; its U.S. base in Nashville, Tenn.; Detroit; and Shanghai, China. The Shanghai location opened in 2005, said Brian Angle, CMS vice president of marketing. Mattec has a sales and service office in Sheffield, England.
Angle said nearly half of CMS' sales come from suppliers to the automotive industry. The company's fastest-growing market is the food-production industry, driven by increasing demands for tracking products all through the supply chain.
ERP systems can track production, material usage, profitability and other overall factors for an entire factory or group of factories. The ERP systems need to link to machines on the factory floor - Mattec's specialty. Mattec historically has been focused on plastics processing, with products such as the ProHelp EPM production- and process-monitoring system. Thiel said Mattec will continue to support its base of customers that connect Mattec systems into many different brands of ERP systems.
"They're converging down onto the shop floor, getting more real-time information from the shop floor," Thiel said.
CMS' Joss said working together gives CMS and Mattec "the expertise and research muscle" to lead the "deep integration" of both offerings.
Mattec's Windows-based ProHelp EPM monitors every cycle of every machine and alerts users to changes in processing conditions before bad parts are produced. Mattec products work on injection molding, blow molding, extrusion, metal-stamping, die-casting and other equipment.
CMS was founded in 1986.
In news at NPE 2006, Mattec is showing version 7.0 of ProHelp, now with support for labeling products with bar codes or radio frequency identification tags. From a touch screen of a machine-interface unit, the system automatically can generate RFID tabs or bar-code labels with unique serial numbers for each part produced or each box of parts.
The labels ensure each part can be tracked back to the equipment and processing data stored in ProHelp. The labels and tags can be generated automatically at the end of a production run or, to eliminate problems with lost labels and mislabeling, ProHelp EPM 7.0 also can do on-demand printing.