In the most recent article for Plant Engineering Magazine, Bundy Group reported five notable transactions for the month of June across the automation, industrial technology, and plant management sectors, adding to the growing M&A and capital placement activity in the space.
The automation and industrial technology markets continue to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation and industrial technology markets, the consolidation opportunities within these industries, and the strength of many of the companies operating within them. Furthermore, the automation and industrial technology sectors have attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industries. From such, Bundy Group closed transactions as Ultimation and Industrial Electric Machinery, our team continues to see strong interest from a range of qualified buyers in the automation, industrial technology and plant management segments. Further evidence of the robust M&A and capital placement activity is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, industrial services, and electrical services. This serves as a leading indicator for industries our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates to Plant Engineering magazine readers.
5/24/24
Tinicum, L.P. and affiliated funds managed by Tinicum Incorporated has acquired a controlling interest in KGM from Compass Group Equity Partners. Headquartered in Tulsa, Oklahoma, KGM is a leading value-added distributor of natural gas products, including control valves and instruments, to utilities and commercial & industrial customers. Learn more.
5/24/24
South Korea’s service robot company Everybot Inc. acquired AI robot mobility specialist hyCore to expand into the personal mobility sector. Everybot, a company listed on the Kosdaq, said on Monday that it secured management rights by acquiring 947,250 shares or 31.8% stake in hyCore. Learn more.
5/23/24
IPS, a North American leader in servicing, engineering, and remanufacturing electrical, mechanical, and power management assets, has acquired Houghton International. Houghton specializes in the repair and remanufacturing of electric motors, generators, pump systems, and electric coils for customers in the rail, power generation, industrial, water/wastewater and mining industries. Learn more.
5/16/24
Cleaver-Brooks has been acquired by Miura Co., Ltd., a global leader in boiler manufacturing based in Matsuyama, Japan. Miura specializes in steam generation and various related products including water treatment, food processing, medical, marine, and environmental equipment. Cleaver-Brooks is known for its boiler room solutions aimed at reducing energy consumption, costs, and environmental footprint. Learn more.
5/15/24
ATS Corporation a leading automation solutions provider, has entered into a definitive agreement to acquire Paxiom Group, a provider of primary, secondary, and end-of-line packaging machines in the food and beverage, cannabis, and pharmaceutical industries. Founded in 1978, ATS employs over 7,000 people at more than 65 manufacturing facilities and over 85 offices in North America, Europe, Southeast Asia and Oceania. Learn more.
In this article for Automation World, Clint Bundy interviews automation expert and former owner of Ultimation, a control system integration and automated material handling solutions company, Richard Canny. Within, the pair discusses the process of creating a first-class management team, understanding when it's time to approach a business sale, hiring an investment banker, and adequately assessing the buyer pool and selecting accordingly.
Clint Bundy: Tell us about the history of Ultimation and your ownership of the company.
Richard Canny: Ultimation is based in the metro Detroit area, serving customers throughout North America and some in South America. The firm has a heritage of being an industry-focused company that provides material handling and conveyor solutions.
In terms of my history, I was an executive with Ford Motor Company in Australia, the U.S., Malaysia, Argentina and Brazil before returning to oversee corporate strategy at Ford. In 2011, we purchased Ultimation, which was a turnaround opportunity. The company had been founded by someone in the machinery industry, making equipment for commercial truck tires and conveyors. The business was on a decline by 2011 and we saw potential to grow and make something of the organization
Bundy: Discuss the core offerings, including your unique e-commerce segment, and its client market that it services.
Canny: Ultimation has a legacy system integration business which we were able to build upon. We embraced digital, diversified out of the cyclicality of the automotive market, and looked at geographic expansion. Our big inflection point came in 2016 when we started selling online, which became a major business segment for us. It’s more than half of Ultimation’s business now.
Bundy: Another great decision you made was to build a first-class management team beyond you and Jackie. When did you start to form that team?
Canny: Around 2018-2019, we started adding department managers and made some really good hires. The management team has been together for five to seven years now with virtually no attrition. They've been fabulous and will take the company forward to the next stage.
Bundy: What convinced you that the time was right to explore a sale?
Canny: I had some involvement with mergers and acquisitions during my Ford career, which included really big decisions like selling Volvo or Jaguar. However, I'd never done the nuts-and-bolts piece of business sales. At Ultimation, we started growing so quickly after 2016-2018 that we didn't have time to reflect on what we were doing with that growth.
Around 2021, we realized we probably should have had some M&A component to our growth, either to be acquired or to acquire other companies. We started looking at it through both lenses and we realized we didn't have the runway, the capital or the risk appetite to be a platform acquirer.
That led us into thinking about investment bank advisors and the sale process. I wanted to retire in my early sixties rather than my late sixties. I assumed that it would be a multi-year process to sell the business and not something you wake up and do in two or three months. You really need to get your ducks in a row before going down this path, and the sooner you start talking with an investment banker, the better.
Bundy: Describe your thought process on why you decided to hire an investment bank rather than working without an advisor.
Canny: Once your company reaches a certain size, you'd be foolish to try and do it yourself or reactively. The purpose of doing it proactively is to create competitive tension to maximize the return. While people can sell companies by themselves or handle a one-on-one buyer discussion, that's not the way I work. I'm a process-oriented guy. I looked at it as two major steps: Who's going to represent me best in bringing the company to market? How do we do that process to maximize the outcome for the shareholders and the company?
We started identifying bankers in 2022 and, after careful consideration, we chose Bundy Group because of the team’s industry focus, size and recommendations.
Bundy: Discuss the outcome and why you selected the buyer you did after reviewing numerous offers.
Canny: We had a preliminary valuation completed by an outside appraisal firm before we hired Bundy Group, which gave us an initial number. With the interest we received during the competitive sale process, we ended up with a value more than double what we initially expected. Motion & Control Enterprises (MCE), our new parent company, was a perfect fit based on what we learned through the process and talking to multiple buyers. MCE is moving into higher technology and e-commerce offerings, which aligns well with Ultimation. Jackie and I now have an equity stake in MCE, which offers us the chance for future returns. Furthermore, MCE’s platform offers great opportunity for our staff and management team to grow.
Bundy: What steps would you recommend to an owner to: a) improve the value of their business and b) best prepare the company and themselves for a sale?
Canny:
Charlotte, NC (April 2024) – Bundy Group, an industry-focused investment bank, is pleased to announce the addition of Drew Thomas as Director. With an extensive background in the Physician Practice Management sector, which includes Dermatology and Plastic Surgery, Drew brings a wealth of knowledge and understanding of the dynamic clinical and aesthetic environment to the company. Drew will leverage his industry expertise and strong rolodex of relationships to further Bundy Group’s leadership in the Healthcare & Wellness sector.
“Drew has been a trusted partner of Bundy Group for some time, and we are excited to have him as a team member to assist us in growing our Healthcare & Wellness business,” said Clint Bundy, Managing Director of Bundy Group. “Drew has a proven track record and offers our clients the advantage of advice and insight from a professional that has not only served in executive and sales positions within healthcare organizations, but he has led an acquisition roll-up strategy in the Dermatology & Aesthetics market.”
Prior to joining Bundy Group, Drew played a vital role in creating and executing strategic plans for multiple private equity-backed organizations to operate under a Management Services Organizations (MSO) platform in the Dermatology & Aesthetics sector. In his executive position with these MSOs, Drew offered operational and advisory expertise to numerous medical practice owners with the goal of exploring ways to grow and build long-term value. In addition to his private equity work, Drew is a co-founder of a healthcare-focused Software as a Service platform company, where he has successfully executed growth activities including development, marketing, partnerships, and sales operations. He also served in executive sales and operational positions with several healthcare technology and device organizations, where he provided practices with on-site support and safe, profitable, and effective solutions and applications for their patients.
"With a background in the medical and hospitality industries, I am thrilled to bring 20 years of diverse experiences and a deep appreciation for client-focused industries to Bundy Group,” said Drew. “Just as aesthetic medicine requires precision and foresight to enhance beauty, investment banking advisory demands a keen understanding of the M&A markets and a commitment to advising clients on how they can best create and then realize value in their businesses. By blending my past healthcare and private equity experiences, I look forward to making meaningful contributions to our current and future clients and working alongside talented colleagues at Bundy Group.”
Drew received a Bachelor of Science in Commerce and Business Administration with a concentration in business marketing from The University of Alabama. In his free time, he serves the local community and enjoys spending time with his wife and three children.
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About Bundy Group
Established in 1989, Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and skill to provide hands-on guidance to clients through every phase of the business transaction. Bundy Group has been a trusted partner in more than 250 closed deals over the past 35 years, providing high quality options, actionable insights, and delivery of optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. More information on the background of Bundy Group Securities, LLC is available at FINRA's BrokerCheck.
In this article for Plant Engineering Magazine, Bundy Group delves into the nine automation transactions for the month of April, noting several attractive qualities of the automation and industrial technology sectors that have drawn in various strategic buyers and financial sponsors.
The automation and industrial technology markets continue to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation and industrial technology markets, the consolidation opportunities within these industries, and the strength of many of the companies operating within them. Furthermore, the automation and industrial technology sectors have attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industries. From such, Bundy Group closed transactions as Ultimation and Industrial Electric Machinery, our team continues to see strong interest from a range of qualified buyers in the automation, industrial technology and plant management segments. Further evidence of the robust M&A and capital placement activity is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, industrial services, and electrical services. This serves as a leading indicator for industries our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates to Plant Engineering magazine readers.
4/21/24
Siemens AG has signed an agreement to acquire the industrial drive technology (IDT) business of ebm-papst. The business, which employs around 650 people, includes intelligent, integrated mechatronic systems in the protective extra-low voltage range and innovative motion control systems. The planned acquisition will complement the Siemens Xcelerator portfolio and strengthen Siemens’ position as a leading solutions provider for flexible production automation. Learn more.
4/16/24
Mangrove Equity Partners announced its investment in NORMco Pump & Power, LLC headquartered in Shawnee, OK. Founded in 2013 by Nathan and Vera Hanks, NORMco specializes in manufacturing and renting portable, industrial pumps for water transfer applications. Recognized for reliability and exceptional service, NORMco targets water transfer providers in the Permian Basin and seeks a strategic partner to facilitate future growth. Learn more.
4/11/24
Graham Partners, an investment firm focusing on advanced manufacturing, has acquired E Tech Group. Based in West Chester, Ohio, E Tech is an industrial automation systems integrator serving various end markets, including life sciences, data centers, consumer packaged goods, and industrial sectors. E Tech collaborates with customers for integration and ongoing operational support of automation solutions in regulated environments. Learn more.
4/8/24
Industrial Device Investments, LLC has initiated a strategic partnership with Wasik Associates, LLC, a leading manufacturer of Electron Beam Processing Systems in Dracut, Massachusetts. Under the leadership of Tom Wasik, the third-generation owner, this collaboration aims to drive technological advancement and market expansion. Learn more.
4/1/24
Lincoln Electric Holdings, Inc. has acquired RedViking, a privately held automation system integrator based in Plymouth, Michigan, U.S. RedViking specializes in the development and integration of state-of-the-art autonomous guided vehicles (AGVs) and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system (MES) software. Learn more.
3/26/24
Rhino Tool House has acquired industrial solution provider MP Industrial in Tacoma, Washington. Mike Madden and MP Industrial team have been providing a wide range of assembly tools and custom material handling products to meet manufacturing needs in the Western United States since 2008. MPI started in Tacoma, WA and has continued expanding throughout the western United States, as far south as Texas. Learn more.
3/26/24
VINCI Energies acquires Premiere Automation LLC., an Industrial Controls and Robotics specialist in the USA with their office in Charleston, South Carolina. Premiere Automation provides Project Management, Controls and Robotics Integration and Training Services for clients in the Automotive Industry. Learn more.
3/20/24
Sonepar has entered into an agreement to acquire the Michigan-based distributors, Madison Electric Company and Standard Electric Company. Family-owned and operated since Madison’s founding in 1914, and Standard’s in 1929, Madison and Standard are full-line distributors of electrical and industrial products and services to its contractor and industrial customers, and distribute into, and service, the HVAC and plumbing markets. Learn more.
3/18/24
Fortifi Food Processing Solutions, a leading platform of food processing equipment and automation solutions, has completed its acquisition of REICH Thermoprozesstechnik GmbH, a leader in thermoprocessing systems for red meat, fish, poultry, cheese, pet food, and other food markets. REICH joins a platform that includes other leading brands, such as Bettcher Industries, Frontmatec, and MHM Automation. Learn more.
In the most recent article for Control Engineering Magazine, Bundy Group recounts the ten notable automation transactions for the month of April, citing the growth-oriented nature nature and various consolidation opportunities within the industry as key driving factors for increased activity.
The automation market continues to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation market, the consolidation opportunities within the industry, and the strength of many of the companies operating within it. Furthermore, the automation market has attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industry. From such, Bundy Group closed automation transactions as Ultimation and MR Systems, our team continues to see strong interest from a range of qualified buyers in the automation segment. Further evidence of the robust M&A and capital placement activity in automation is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, robotics, automated material handling, automation distribution, artificial intelligence, and cybersecurity. This serves as a leading indicator for submarkets our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates and transaction announcements to Control Engineering magazine readers.
4/21/24
Siemens AG has signed an agreement to acquire the industrial drive technology (IDT) business of ebm-papst. The business, which employs around 650 people, includes intelligent, integrated mechatronic systems in the protective extra-low voltage range and innovative motion control systems. The planned acquisition will complement the Siemens Xcelerator portfolio and strengthen Siemens’ position as a leading solutions provider for flexible production automation. Learn more.
4/11/24
Graham Partners, an investment firm focusing on advanced manufacturing, has acquired E Tech Group. Based in West Chester, Ohio, E Tech is an industrial automation systems integrator serving various end markets, including life sciences, data centers, consumer packaged goods, and industrial sectors. E Tech collaborates with customers for integration and ongoing operational support of automation solutions in regulated environments. Learn more.
4/8/24
Industrial Device Investments, LLC has initiated a strategic partnership with Wasik Associates, LLC, a leading manufacturer of Electron Beam Processing Systems in Dracut, Massachusetts. Under the leadership of Tom Wasik, the third-generation owner, this collaboration aims to drive technological advancement and market expansion. Learn more.
4/1/24
Lincoln Electric Holdings, Inc. has acquired RedViking, a privately held automation system integrator based in Plymouth, Michigan, U.S. RedViking specializes in the development and integration of state-of-the-art autonomous guided vehicles (AGVs) and mobile robots, custom assembly and dynamic test systems, and proprietary manufacturing execution system (MES) software. Learn more.
3/28/24
Orchard Robotics, the company enabling precision crop management with robots and AI, announced their $3.8M raise, across a seed round led by General Catalyst, and a pre-seed led by Contrary. In this oversubscribed round, they are joined by Humba Ventures, Soma Capital, Correlation Ventures, and VU Venture Partners. Learn more.
3/26/24
VINCI Energies acquires Premiere Automation LLC., an Industrial Controls and Robotics specialist in the USA with their office in Charleston, South Carolina. Premiere Automation provides Project Management, Controls and Robotics Integration and Training Services for clients in the Automotive Industry. Learn more.
3/21/24
SER, a leading global Intelligent Content Automation software vendor in the Enterprise Content Management market, announced that TA Associates, a leading global private equity firm, has agreed to make a strategic growth investment in the Company. SER and Carlyle, an investor in SER since 2018, welcome TA as the new lead investor. Learn more.
3/20/24
Sonepar has entered into an agreement to acquire the Michigan-based distributors, Madison Electric Company and Standard Electric Company. Family-owned and operated since Madison’s founding in 1914, and Standard’s in 1929, Madison and Standard are full-line distributors of electrical and industrial products and services to its contractor and industrial customers, and distribute into, and service, the HVAC and plumbing markets. Learn more.
3/18/24
Fortifi Food Processing Solutions, a leading platform of food processing equipment and automation solutions, has completed its acquisition of REICH Thermoprozesstechnik GmbH, a leader in thermoprocessing systems for red meat, fish, poultry, cheese, pet food, and other food markets. REICH joins a platform that includes other leading brands, such as Bettcher Industries, Frontmatec, and MHM Automation. Learn more.
3/11/24
John Henry Foster Minnesota, Inc. a strategic collection of engineers, support and service teams, compressed air experts, and automation and robotics solutions provider, acquired HTE Technologies, a leading automation supplier operating in Kansas, Missouri, and Illinois. To be run as an independent division of JHFOSTER, the company will continue to serve its existing customer base, operate under its existing brand, and remain at its headquarters in St. Louis. Learn more.
Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed on over 250 transactions, which includes numerous automation-related transactions. You can learn more at www.bundygroup.com or by contacting Clint Bundy.
In the world of mergers and acquisitions (M&A), the competitive business sale process is a complex yet essential part of the journey. If you're a business owner or a part of a management team considering a business sale or capital raise, understanding this process is crucial. In this piece, the competitive business sale process will be analyzed, the key stages defined, and insights offered to help a business owner better position for a sale or capital raise and a successful outcome.
Goals of a Competitive Sale or Capital Raise: In any M&A transaction, there are two primary objectives that an owner and his advisors should seek.
Transaction Structure: The transaction structure refers to how the buyer and seller organize the different forms of consideration to comprise the total valuation. To learn more, please visit the BG Insights article entitled “Structure: The Backbone of a Mergers & Acquisitions Transaction.”
What is an Investment Banker? Investment bankers play a vital role in M&A transactions. They facilitate the entire process, including advising a company how to best prepare a business for a sale and managing buyer conversations and negotiations to lead to a successfully closed deal. To learn more, please visit the Bundy Group Insights video titled "Why Hire an Investment Banker."
Sellside Quality of Earnings Report: A Sellside Quality of Earnings analysis and report is an in-depth financial audit of the seller’s financials for the purpose of facilitating a transaction. The seller hires an independent transaction accounting firm to complete the analysis and report, and that accounting firm is also in place as a seller advisor throughout the transaction. While the transaction accounting firm focuses on validating historical financials, the investment banking advisor focuses on the future and maximizing value and negotiating leverage. This can be another mechanism to drive value and increase the certainty of a closed deal. To learn more, please visit the Bundy Group Insights video and article titled "The Sellside Quality of Earnings Report."
Unsolicited Offer: An unsolicited offer is an unexpected proposal from a potential buyer who initiates contact without prior engagement from the seller. To learn more, please visit the BG Insights video and article entitled “What is an Unsolicited Offer?”
Business Sale vs. Capital Raise: A competitive sale typically involves selling over 50% of your company’s equity to an outside party, while a capital raise often involves selling less than 50% of a company’s equity or using debt for financing.
The business sale process can be broken down into four distinct phases. Each phase is centered around creating a position of negotiating strength for the seller and driving competition. There are very few strategic buyers or financial sponsors that will put their best foot forward unless they are pushed to do so.
The entire process can typically take 6 to 12 months. However, the process timeline depends on a variety of factors such as the complexity of the business, the quality and accessibility of financial data, the extent of due diligence required, and the intensity of the negotiation phase. Furthermore, hiring an experienced investment banker that understands the best pool of buyers for that industry and can best position the company in a process will have a substantial impact on both the transaction terms and the timeline to close.
Navigating the competitive business sale process in M&A transactions involves a series of well-defined stages, from preparation to closing. A business owner is highly recommended to focus on the following in a competitive process:
A business sale, or capital raise, is a complicated process that could yield tremendous gains for a seller or result in significant amounts of money being left “on the table.” Furthermore, the outcome could produce a quality long-term partner or a new owner that tarnishes the reputation of the company. The best way for an owner to ensure a strong outcome is to run a competitive process, ideally managed by an experienced investment banker, which delivers multiple options to drive an educated decision-making process that minimizes risk and maximizes the quality of the outcome.
Charlotte, NC (March 2024) – Bundy Group, an industry-focused investment bank, is pleased to announce the addition of Porter Tiller to its growing advisory team. Porter joins Bundy Group as a Director, bringing more than two decades of sales and executive experience in the Healthcare, Wellness, and Medical Technology markets. In his role, Porter will leverage his industry expertise and experience as Bundy Group furthers its leadership in the Healthcare & Wellness sector.
“We are excited to have Porter on the team, and we anticipate further acceleration of Bundy Group's growth in the Healthcare & Wellness markets as a result of his addition,” said Clint Bundy, Managing Director of Bundy Group. “I, as well as other members of the Bundy Group team, have known Porter for many years. His impressive background, coupled with his client-first business philosophy, make him a natural fit for our organization.”
Before joining Bundy Group, Porter accumulated over twenty years of experience and operational expertise in the Aesthetics, Dermatology, Plastic and Reconstructive Surgery, Women's Health, Neurology, Cardiology, Veterinary, and Dental sectors. In 2015, Porter co-founded MedShift, a medical technology company, and served in both executive and board positions with the organization. During Porter’s tenure, the company grew into a leading solutions provider for the Aesthetics and Wellness industries.
In addition to his work with MedShift, Porter also served in leadership and sales positions with Solta Medical and Viveve. In these roles, Porter acted as a trusted sales executive where he was responsible for driving tens of millions of dollars in device and consumable-based revenue across diverse territories.
"Bundy Group was an integral part of the strategic growth of MedShift, and it gave me the opportunity to see the level of skill and care the team puts into each transaction,” said Porter. “I am excited to be a part of this dynamic team and lend my experience to helping others reach their business goals.”
Porter is a graduate of Winthrop University where he received a Bachelor of Arts in Business and Finance and a Master of Business Administration with a concentration in entrepreneurship. He currently resides in Charlotte with his wife and two children.
About Bundy Group
Established in 1989, Bundy Group is an industry-focused investment bank that specializes in representing business owners and management teams in business sales, acquisitions, and capital raises. The team of highly experienced investment bankers leverages extensive industry knowledge and skill to provide hands-on guidance to clients through every phase of the business transaction. Bundy Group has been a trusted partner in more than 250 closed deals over the past 35 years, providing high quality options, actionable insights, and delivery of optimal strategic fit at a premium value for our clients.
Bundy Group Securities, LLC, is a registered broker-dealer and member of FINRA and SIPC. More information on the background of Bundy Group Securities, LLC is available at FINRA's BrokerCheck.
In this article for Plant Engineering Magazine, Bundy Group provides a status update on the state of the automation, industrial technology, and plant management sectors during March, reporting seven notable automation transactions.
The automation and industrial technology markets continue to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation and industrial technology markets, the consolidation opportunities within these industries, and the strength of many of the companies operating within them. Furthermore, the automation and industrial technology sectors have attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industries. From such, Bundy Group closed transactions as Ultimation and Industrial Electric Machinery, our team continues to see strong interest from a range of qualified buyers in the automation, industrial technology and plant management segments. Further evidence of the robust M&A and capital placement activity is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, industrial services, and electrical services. This serves as a leading indicator for industries our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates to Plant Engineering magazine readers.
3/11/24
Walter has acquired PushCorp, Inc., a USA-based, industry-leading manufacturer of robotic end-of-arm-tools for material removal applications, marking a significant stride in its quest to become the leader in productivity solutions for the metalworking industry. This strategic move underscores Walter’s dedication to expanding its capabilities and offerings, ensuring it remains at the forefront of technological advancements within the sector. Learn more.
3/5/24
IPS, a North American leader in the service, engineering, and remanufacturing of electrical, mechanical, and power management assets, has acquired Electric Motor Service Limited. Headquartered in Edmonton, Alberta, EMSL has sold and serviced industrial electric motors and generators in western Canada since 1945. An EASA member, the company also sells, services, and remanufactures industrial and residential water and wastewater pumps. Learn more.
2/27/24
ChampionX Corporation has acquired Artificial Lift Performance Limited, a provider of advanced analytics solutions for enhancing oil and gas production performance. Based in Edinburgh, Scotland, ALP has extensive expertise in developing artificial lift optimization software designed to maximize production and extend the life of artificial lift equipment. Learn more.
2/26/24
Kele, Inc., a portfolio company of The Stephens Group, LLC, acquired AC Controls and AC Technical Services, a distributor and rep of industrial process and combustion applications. The acquisition continues to expand Kele’s footprint within the industrial automation market. ACC will become an integral part of the industrial offerings of The Kele Companies, which includes Lesman Instrument Company (Bensenville, IL) and A-tech Inc. (Tulsa, OK). Learn more.
2/23/24
Wesco International has entered into a definitive agreement to sell its Wesco Integrated Supply business to Vallen Distribution, Inc., a portfolio company of Nautic Partners, LLC, for a purchase price of $350 million. The Company expects to use the proceeds to reduce debt and repurchase shares. The sale will include predominately all of Wesco’s industrial maintenance, repair and operations (MRO) integrated supply business in North America and Europe. Learn more.
2/22/24
Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, has acquired USA Water from Warren Equity Partners in partnership with management. Headquartered in Rosenberg, Texas, USA Water is a leading provider of operations and maintenance (“O&M”) services for water and wastewater systems across the Southeast United States. Learn more.
2/27/24
Duravant LLC, a global engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors, has acquired Ferdinand Henneken GmbH, a leading manufacturer of protein processing solutions headquartered in Bad Wünnenberg, Germany. Learn more.
2/22/24
Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, has acquired USA Water from Warren Equity Partners in partnership with management. Headquartered in Rosenberg, Texas, USA Water is a leading provider of operations and maintenance (“O&M”) services for water and wastewater systems across the Southeast United States. Learn more.
2/22/24
Cadre Holdings, Inc., a global leader in the manufacturing and distribution of safety and survivability equipment, has entered into a definitive agreement to acquire Alpha Safety Intermediate, LLC, the operating parent of Alpha Safety, a leading nuclear safety solutions company for $106.5 million (excluding working capital and certain other adjustments upon closing). Learn more.
In a recent article for Control Engineering Magazine, Bundy Group revisits the seven automation transactions for March, paying close attention to key drivers of increased market activity such as persistent growth and consolidation opportunities along with rising strength of companies within the manufacturing and plant management fields.
The automation market continues to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation market, the consolidation opportunities within the industry, and the strength of many of the companies operating within it. Furthermore, the automation market has attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industry. From such, Bundy Group closed automation transactions as Ultimation and MR Systems, our team continues to see strong interest from a range of qualified buyers in the automation segment. Further evidence of the robust M&A and capital placement activity in automation is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, robotics, automated material handling, automation distribution, artificial intelligence, and cybersecurity. This serves as a leading indicator for submarkets our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates and transaction announcements to Control Engineering magazine readers.
3/11/24
Walter has acquired PushCorp, Inc., a USA-based, industry-leading manufacturer of robotic end-of-arm-tools for material removal applications, marking a significant stride in its quest to become the leader in productivity solutions for the metalworking industry. This strategic move underscores Walter’s dedication to expanding its capabilities and offerings, ensuring it remains at the forefront of technological advancements within the sector. Learn more.
2/27/24
Duravant LLC, a global engineered equipment and automation solutions provider to the food processing, packaging and material handling sectors, has acquired Ferdinand Henneken GmbH, a leading manufacturer of protein processing solutions headquartered in Bad Wünnenberg, Germany. Learn more.
2/26/24
Kele, Inc., a portfolio company of The Stephens Group, LLC, acquired AC Controls and AC Technical Services, a distributor and rep of industrial process and combustion applications. The acquisition continues to expand Kele’s footprint within the industrial automation market. ACC will become an integral part of the industrial offerings of The Kele Companies, which includes Lesman Instrument Company (Bensenville, IL) and A-tech Inc. (Tulsa, OK). Learn more.
2/22/24
Levine Leichtman Capital Partners, a Los Angeles-based private equity firm, has acquired USA Water from Warren Equity Partners in partnership with management. Headquartered in Rosenberg, Texas, USA Water is a leading provider of operations and maintenance (“O&M”) services for water and wastewater systems across the Southeast United States. Learn more.
2/22/24
Cadre Holdings, Inc. ,a global leader in the manufacturing and distribution of safety and survivability equipment, has entered into a definitive agreement to acquire Alpha Safety Intermediate, LLC, the operating parent of Alpha Safety, a leading nuclear safety solutions company for $106.5 million (excluding working capital and certain other adjustments upon closing). Learn more.
2/21/24
Eyelit Technologies, a leader in Manufacturing Operations Management, Manufacturing Execution, Quality Management, and Factory Automation solutions, has acquired Optessa, a pioneer in optimization and AI-powered advanced planning and scheduling software. The acquisition extends Eyelit Technologies’ footprint into the automotive sector, where Optessa solutions are in use at four of the top 10 automotive original equipment manufacturers. Learn more.
12/11/23
HMS Networks AB, a global provider of industrial information and communication technology, has acquired the Red Lion Controls business, a well-established US-based provider of industrial automation solutions, through the acquisition of 100 percent of the shares in Red Lion Controls Inc. and Red Lion Europe GmbH as well as certain assets in other jurisdictions (“Red Lion”), significantly expanding HMS’ presence in the North American market. Learn more.
Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed on over 250 transactions, which includes numerous automation-related transactions. You can learn more at www.bundygroup.com or by contacting Clint Bundy.
In this article for Automation World, Clint Bundy, Managing Director at Bundy Group, delves into the current macroeconomic landscape and summarizes the key automation trends and M&A insights detailed at a recent presentation to the Measurement, Control and Automation Association (MCAA) with Bundy Group's Director of Analytics and Consulting, Alex Chausovsky.
Despite initial concerns and varied opinions, 2023 proved to be a strong year with GDP reaching record highs. Based on this, Alex urged MCAA members to focus on the business investment category, particularly in assessing U.S. industrial production. Though a potential decline in the industrial sector is expected over the next few quarters, he expressed optimism for a recovery by the latter part of 2024 and into 2025.
Alex noted that strategic opportunities exist in specific sectors, such as electric vehicles and batteries, semiconductors, food and beverage, life sciences and renewable energy. He advised businesses to leverage this period to prepare for the next growth phase, emphasizing the need for resilience in supply chains and strategic planning.
Other issues addressed in our presentation included:
Insights into the automation M&A market: In 2023, nearly 200 closed transactions were tracked, showcasing a consistent monthly deal flow. This robust activity highlights a high demand for automation companies from both strategic buyers and financial sponsors, making it an opportune time for owners contemplating sales or capital raises. With more $3 trillion in capital seeking investment opportunities in privately held companies, owners have the flexibility to explore a full sale, a majority equity sale, a minority equity sale, or a debt capital raise. The current buyer demand-seller supply imbalance is driving valuations for quality automation firms into a positive direction.
From a buyer's standpoint, there is an attraction towards value-added service providers in the automation sector. The fragmented nature of the automation market provides buyers with opportunities to acquire and consolidate firms by leveraging scale benefits and generating synergies. This will ultimately help investment-minded groups achieve their returns objectives when they eventually sell their automation platforms.
Workforce shortages and the role of automation: Regardless of the sector, a scarcity of talent is a universal concern for business owners. Automation emerges as a key solution to tackle this challenge, with increased digitization and the incorporation of Internet of Things (IoT) technologies playing a corresponding role for resolving this business dilemma. These underlying demand drivers are helping to accelerate the growth of the automation market.
2024 is expected to be a mix of predictable uncertainty with the presidential election and the ongoing maneuvering by the Fed for a post pandemic soft landing. While these factors are likely to have a cooling effect on businesses, investor interest in industrial automation businesses will continue to drive M&A activity. These conflicting drivers make strategic planning more difficult and critically important to the success of your business.
The session “Building and Realizing Business Value: Headwinds and Opportunities Ahead”—to be held at the Control System Integrators Association 2024 Conference in Dallas, TX, April 15-19—will combine insights from a team of experts who have advised numerous system integration business owners on growing and realizing the maximum value from their business with the hands-on experience of other system integrator owners and business leaders.
Topics to be addressed include:
Attendees will walk away from the session with the following actionable insights:
Register at: https://na.eventscloud.com/ereg/newreg.php?eventid=778474&
In this article for Plant Engineering Magazine, Bundy Group details key transactions from February emphasizing the ongoing interest from qualified buyers and continued M&A and capital placement activity in the automation, industrial technology, and plant management sectors.
The automation and industrial technology markets continue to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation and industrial technology markets, the consolidation opportunities within these industries, and the strength of many of the companies operating within them. Furthermore, the automation and industrial technology sectors have attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industries. From such, Bundy Group closed transactions as Ultimation and Industrial Electric Machinery, our team continues to see strong interest from a range of qualified buyers in the automation, industrial technology and plant management segments. Further evidence of the robust M&A and capital placement activity is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, automated material handling, automation distribution, industrial services, and electrical services. This serves as a leading indicator for industries our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates to Plant Engineering magazine readers.
2/9/24
BBH Capital Partners, the private equity arm of Brown Brothers Harriman & Co. (BBH), completed a minority equity investment in Wolter Inc. Founded in 1962 and headquartered in Brookfield, WI, Wolter specializes in material handling and industrial productivity equipment. Known for its commitment to enhancing client operations, Wolter’s partnership with BBHCP aims to fuel further growth and innovation. Learn more.
2/7/24
Trystar has acquired Wisconsin-based Macromatic Industrial Controls, Inc. to enhance its monitoring and control portfolio offerings and access to additional industrial customers. Headquartered in Waukesha, Wisconsin, Macromatic engineers and manufactures industrial controls, monitoring, and protection products designed to maintain productivity. Learn more.
1/31/24
Blackford Capital, a leading lower middle market private equity firm, has acquired Data Science Automation, an automation engineering services and training firm with operations in Pittsburgh, Pennsylvania and Cleveland, Ohio, that collaborates with its clients to digitally transform and automate laboratory, product, manufacturing, and test systems and applications. Learn more.
1/29/24
Hollysys Automation Technologies Ltd. has agreed to be acquired by a buyer controlled by Ascendent Capital Partners, a Hong Kong-based investment firm. The Special Committee of Hollysys unanimously recommended shareholders vote in favor of the acquisition due to Ascendent’s compelling offer and fully financed proposal. This acquisition reflects Ascendent’s strategic interest in investing in the technology sector. Learn more.
1/25/24
Dynamysk Automation Ltd., a leading provider of instrumentation, controls, and electrical solutions, is pleased to announce its acquisition by Allnorth Consultants Limited, known as Allnorth. Dynamysk, a Canadian company, specializes in delivering fully integrated lifecycle solutions in industrial instrumentation, controls, and electrical disciplines. Learn more.
1/24/24
Rhino Tool House, a leading value-added distributor of intelligent fastening solutions, customized material handling solutions and calibration services to OEMs, has acquired Power Tools & Supply, Inc. Based in Walled Lake, Michigan, Power Tools & Supply has been providing a wide range of assembly tools and material handling solutions to automotive and automation integration customers since 1989. Learn more.
1/23/24
Angeles Equity Partners LLC, a middle-market private equity investment firm focused on the industrial sector, has acquired Acieta LLC, a Waukesha, Wis.-based robotics manufacturer and integrator, from Mitsui & Co. Inc. The terms of the transaction weren’t disclosed. Learn more.
In this article for Control Engineering Magazine, Bundy Group notes the nine notable transactions for the month of February, highlighting the positive market trends and acknowledging the various opportunities and strengths within the automation industry.
The automation market continues to experience a tremendous amount of mergers & acquisitions (M&A) and capital markets activity. Drivers of this activity include the growth-oriented nature of the automation market, the consolidation opportunities within the industry, and the strength of many of the companies operating within it. Furthermore, the automation market has attracted a critical mass of strategic buyers and financial sponsors (i.e. private equity groups, family offices, institutional investors) that are looking to own or invest in companies in the industry. From such, Bundy Group closed automation transactions as Ultimation and MR Systems, our team continues to see strong interest from a range of qualified buyers in the automation segment. Further evidence of the robust M&A and capital placement activity in automation is provided in the below list of transactions.
Bundy Group’s current engagements and owner relationships include control system integration, robotics, automated material handling, automation distribution, artificial intelligence, and cybersecurity. This serves as a leading indicator for submarkets our team anticipates closed transactions in over the coming months. We look forward to providing these relevant updates and transaction announcements to Control Engineering magazine readers.
2/13/24
Coesia, through its Company FlexLink, has closed the acquisition of 100% of the share capital of Automation & Modular Components. Automation & Modular Components, LLC. is a manufacturer of material handling automation systems with integrated controls, as well as conveyors for integration into assembly systems and production lines, headquartered in Davinsburg, Mich. Learn more.
2/12/24
HSL Compliance enhances its water safety services with the acquisition of Durham-based technology firm Plexus Innovation. Plexus specializes in IoT technology for remote monitoring solutions in the water safety industry, allowing HSL to promptly detect and resolve issues with expert precision. This acquisition strengthens HSL’s leadership in water safety, ensuring prompt issue resolution and regulatory compliance. Learn more.
2/9/24
BBH Capital Partners, the private equity arm of Brown Brothers Harriman & Co. (BBH), completed a minority equity investment in Wolter Inc. Founded in 1962 and headquartered in Brookfield, WI, Wolter specializes in material handling and industrial productivity equipment. Known for its commitment to enhancing client operations, Wolter’s partnership with BBHCP aims to fuel further growth and innovation. Learn more.
2/7/24
Trystar has acquired Wisconsin-based Macromatic Industrial Controls, Inc. to enhance its monitoring and control portfolio offerings and access to additional industrial customers. Headquartered in Waukesha, Wisconsin, Macromatic engineers and manufactures industrial controls, monitoring, and protection products designed to maintain productivity. Learn more.
1/31/24
Blackford Capital, a leading lower middle market private equity firm, has acquired Data Science Automation, an automation engineering services and training firm with operations in Pittsburgh, Pennsylvania and Cleveland, Ohio, that collaborates with its clients to digitally transform and automate laboratory, product, manufacturing, and test systems and applications. Learn more.
1/29/24
Hollysys Automation Technologies Ltd. has agreed to be acquired by a buyer controlled by Ascendent Capital Partners, a Hong Kong-based investment firm. The Special Committee of Hollysys unanimously recommended shareholders vote in favor of the acquisition due to Ascendent’s compelling offer and fully financed proposal. This acquisition reflects Ascendent’s strategic interest in investing in the technology sector. Learn more.
1/25/24
Dynamysk Automation Ltd., a leading provider of instrumentation, controls, and electrical solutions, is pleased to announce its acquisition by Allnorth Consultants Limited, known as Allnorth. Dynamysk, a Canadian company, specializes in delivering fully integrated lifecycle solutions in industrial instrumentation, controls, and electrical disciplines. Learn more.
1/24/24
Rhino Tool House, a leading value-added distributor of intelligent fastening solutions, customized material handling solutions and calibration services to OEMs, has acquired Power Tools & Supply, Inc. Based in Walled Lake, Michigan, Power Tools & Supply has been providing a wide range of assembly tools and material handling solutions to automotive and automation integration customers since 1989. Learn more.
1/23/24
Angeles Equity Partners LLC, a middle-market private equity investment firm focused on the industrial sector, has acquired Acieta LLC, a Waukesha, Wis.-based robotics manufacturer and integrator, from Mitsui & Co. Inc. The terms of the transaction weren’t disclosed. Learn more.
Bundy Group is a boutique investment bank that specializes in representing controls and automation, Internet of Things, and cybersecurity companies in business sales, capital raises, and acquisitions. Over the past 33 years, Bundy Group has advised and closed on over 250 transactions, which includes numerous automation-related transactions. You can learn more at www.bundygroup.com or by contacting Clint Bundy.
