RMH Systems Forges Automation Powerhouse with Systems in Motion Merger

MINNEAPOLIS, MN – July 29, 2026

In a strategic move poised to reshape the industrial automation landscape, RMH Systems has acquired Systems in Motion (SIM), a warehouse automation specialist. The merger, backed by private equity firm Rotunda Capital Partners and financed by junior capital provider Yukon Partners, creates a formidable national platform capable of delivering end-to-end automation solutions—from the factory floor to the customer's doorstep.

This deal is more than a simple acquisition; it represents the culmination of a deliberate strategy to build a comprehensive service provider in a market hungry for integrated solutions. By combining RMH's deep expertise in manufacturing-centric material handling and packaging with SIM's advanced warehouse automation and proprietary software, the new entity aims to eliminate the operational silos that have long plagued complex supply chains.

Crafting a 'One-Stop-Shop' for the Modern Supply Chain

The core rationale behind the merger is the creation of a 'one-stop-shop' for automation. For years, businesses have had to navigate a fragmented market of specialized vendors, hiring one integrator for their manufacturing processes and another for their distribution and fulfillment centers. This often resulted in disjointed systems, integration challenges, and missed opportunities for holistic optimization.

The newly combined company directly addresses this pain point. “Systems in Motion is a transformative addition to the RMH platform,” said Tom Howard, CEO of RMH Systems. “Combining that with RMH’s manufacturing-focused material handling and packaging expertise gives the platform a genuine one-stop-shop offering across the front end and back end of a customer’s operation.”

This integrated approach arrives at a critical time. The global automated material handling equipment market, valued at over $33 billion in 2025, is projected to surge past $88 billion by 2036, driven by the relentless growth of e-commerce, persistent labor shortages, and the increasing complexity of consumer demands. Companies are under immense pressure to enhance efficiency, and a single partner capable of automating the entire value chain presents a powerful value proposition. The merger allows the combined entity to serve a base of over 5,000 customers with a vastly expanded portfolio of services, creating significant cross-selling opportunities.

The Private Equity Playbook: Building Scale Through Strategic Acquisitions

This merger is not an isolated event but the latest step in a calculated growth strategy orchestrated by Rotunda Capital Partners. Since investing in RMH Systems in February 2025, Rotunda has pursued an aggressive 'buy and build' strategy, using targeted add-on acquisitions to expand RMH’s capabilities and geographic footprint.

This is the third such deal under Rotunda's ownership. In August 2025, RMH acquired Complete Solution Robotics (CSR), bolstering its engineering talent and presence in the Mountain West. Earlier this year, it added Top Shelf Integrated Solutions, establishing a foothold in central Ohio. The acquisition of Systems in Motion represents the most significant move yet, transforming RMH from a regional leader into a national platform.

This strategy is a hallmark of Rotunda's 'Rotunda Performance System,' a framework designed to transform founder-owned companies into data-driven powerhouses by implementing lean processes and building robust infrastructure. Providing the financial fuel for this latest transaction is Yukon Partners, a specialized provider of junior capital. Yukon’s investment supports the acquisition and signals strong confidence in the combined entity's growth prospects.

“We are excited to be partnering with Rotunda and the RMH platform,” stated David Sampair, Partner at Yukon. “The Combination of RMH and SIM will create exciting new growth opportunities for the platform.” Yukon’s involvement, typical for middle-market companies with strong cash flow and EBITDA between $5 million and $50 million, underscores the financial viability and strategic appeal of creating a scaled player in the automation sector.

A Fusion of Steel, Software, and Strategy

The true power of this merger lies in the fusion of complementary strengths. RMH Systems, with a history stretching back to 1936, brings a legacy of industrial-grade solutions in material handling, packaging, robotics, and industrial scales. Its expertise is rooted in the demanding environment of the manufacturing floor.

In contrast, Systems in Motion, founded in 1996, represents the cutting edge of warehouse and distribution automation. The company is lauded for its deep in-house engineering expertise and its proprietary software platform, KOZ, which powers its sophisticated integration projects. SIM has built a reputation for solving complex fulfillment challenges for a 'blue-chip' client base across e-commerce, third-party logistics (3PL), and food and beverage sectors. The fact that its founder and CEO, Scott Lee, will remain a significant equity holder and continue to lead the SIM division ensures crucial continuity and retention of its innovative culture.

This combination of RMH's industrial heritage and SIM's software-driven agility creates a potent offering. Clients can now access a single partner to design and implement solutions that seamlessly connect production lines with automated storage and retrieval systems (AS/RS), autonomous mobile robots (AMRs), and high-speed sortation systems in the fulfillment center. This holistic view is essential for achieving the levels of efficiency and data visibility required in today's competitive market.

Navigating a New Competitive Frontier

The formation of this expanded entity sends a clear signal to the rest of the automation industry. By integrating front-end and back-end capabilities, the new RMH Systems challenges both smaller, niche integrators and larger, more established global players. While smaller firms may struggle to match its breadth of services, larger competitors will face a more agile and deeply integrated rival with a strong national presence.

This move is likely to accelerate the trend of consolidation within the highly fragmented material handling sector, as other private equity firms and strategic buyers look to replicate Rotunda's successful platform-building model. For customers, this intensified competition could lead to more innovative, comprehensive, and cost-effective automation solutions.

By uniting decades of industrial experience with next-generation software and warehouse intelligence, the merger of RMH Systems and Systems in Motion does more than just create a larger company; it provides a potential blueprint for the future of industrial automation integration.