Sewtec Automation, renowned for its advanced manufacturing systems, has been acquired by Automated Industrial Robotics Inc, part of Ares Management Corporation.
This strategic acquisition aims to bolster Sewtec’s market position and enhance innovation within the automation sector, creating a robust platform for future growth.
Acquisition Overview
Yorkshire-based Sewtec Automation has been acquired by the US group Automated Industrial Robotics Inc (AIR). This acquisition is expected to fortify Sewtec’s position within the industry, underlining its commitment to innovation and quality automation solutions. The deal was facilitated by Leeds-based investor Endless LLP, which supported a management buyout in 2017.
Sewtec Automation, known for its advanced automated systems, caters to diverse industries ranging from pharmaceuticals to pet food manufacturing. By joining AIR’s portfolio, which includes Totally Automated Systems and Modular Automation, Sewtec seeks to enhance its capacity to deliver innovative solutions. This acquisition marks a strategic expansion for AIR, solidifying its standing in the global automation sector.
Strategic Growth and Expansion
Sewtec’s recent move to its 75,000 sqft facility at Silkwood Business Park demonstrates its growth ambitions. With an impressive workforce of over 170 employees, the company has reported strong order books. This new chapter aims to leverage the combined expertise of AIR’s network to drive technological advancement.
Sewtec also operates a satellite office in Taunton. Its sales, primarily from the UK, are supplemented by an increasing international presence. This acquisition is poised to open more opportunities abroad, as Sewtec integrates into a larger platform.
Leadership Perspective
Brian Klos, AIR’s executive chairman, expressed admiration for Sewtec’s quality and innovation. He asserts that uniting the strengths of Sewtec, TA Systems, and Modular Automation will enhance efficiency and industry standing.
Mark Cook, who previously took part in Sewtec’s management buyout, will now serve as the chief operating officer of AIR. He is optimistic about the synergy between the skilled teams within AIR and Sewtec, focusing on addressing complex challenges for their clientele.
Matt Cwiertnia, a partner at Ares Private Equity Group, supports AIR’s growth strategy and anticipates Sewtec’s integration will contribute significantly to AIR’s global footprint.
Market Context and Implications
This acquisition comes at a time of increasing demand for automation solutions. The partnership is expected to bolster innovation and efficiency, potentially setting a new standard in the sector. It positions AIR as a formidable player on the global stage.
The strategic addition of Sewtec to AIR aligns with a broader trend of consolidation within the manufacturing technology industry. Such moves are often aimed at enhancing competitive advantage and scalability in a rapidly evolving market.
Financial and Operational Excellence
With an annual turnover of £18.8 million, Sewtec Automation has established itself as a financially robust entity. The acquisition by AIR is anticipated to amplify its financial health through shared resources and pooled expertise.
Sewtec’s operational excellence is reflected in its adherence to high-quality standards and innovation. Incorporating it into AIR’s framework aims to capitalise on these strengths, fostering a collaborative environment for growth.
Future Prospects
The acquisition is expected to drive further advancements in automation technology, with a focus on customer-centric solutions. Sewtec’s integration into AIR’s ecosystem marks a strategic move towards realising this vision.
As the automation market continues to expand, the combined entity aims to leverage its enhanced capabilities to meet the burgeoning demands of global industries.
Conclusion of Transaction
The acquisition of Sewtec by AIR represents a pivotal moment for both entities. This move not only strengthens Sewtec’s market position but also enriches AIR’s technological portfolio, setting the stage for continued innovation and growth.
The strategic acquisition of Sewtec Automation by AIR will facilitate technological innovation and market expansion, benefiting both parties. This collaboration is set to drive significant advancements in automation solutions, reinforcing their position as industry leaders.
