Transaction Advances AIR's Growth Strategy With New Capabilities Across Expanded Footprint and Diversified Customer Base
Automated Industrial Robotics Inc. ("AIR" or the "Company") today announced the acquisition of Sewtec Automation ("Sewtec"), a leading industrial automation company based in the United Kingdom. The transaction expands AIR's geographic footprint, strengthens its engineering capabilities and further positions the Company to capitalize on the increasing global demand for manufacturing automation solutions across a diversified customer base. The transaction was funded primarily by an additional investment from an Ares Management Private Equity fund ("Ares").
Founded in 1983, Sewtec brings over 170 team members dedicated to advancing its mission to solve complex problems through engineering innovation and excellent customer service. Sewtec operates out of a 75,000 square-foot design and manufacturing facility, serving a range of brands across various sectors, including pharmaceutical, medical devices, food and beverage, personal care, pet care and e-commerce. With over 7,000 industrial automation systems invented, Sewtec prides itself on its technical expertise, industry knowledge and experience working across a wide variety of sectors to develop solutions that improve its customers' processes.
Sewtec joins Totally Automated Systems ("TA Systems") and Modular Automation ("Modular") as a foundational asset of the AIR portfolio. With the acquisition of Sewtec, AIR now has over 400 employees and an automation hub footprint of approximately 275,000 square feet across the United States, Ireland and the United Kingdom. By leveraging the significant engineering experience and capabilities in each of these hubs, AIR is advancing its goal to seamlessly deliver differentiated industrial automation solutions and service to its global customer base. With Ares' support, AIR expects to seek to further expand its platform through future strategic acquisitions of industrial automation companies with strong operational histories and tenured management teams, in addition to continued investment in its organic growth strategy.
AIR Executive Chairman Brian Klos and Chief Executive Officer Darragh de Stonndún said, "The acquisition of Sewtec represents a significant milestone for AIR. We have long been admirers of the quality of the automation solutions Sewtec has developed for their loyal customer base. We believe that sharing the respective strengths of Sewtec, TA Systems and Modular through AIR will help accelerate our businesses' abilities to enhance efficiencies, drive technological innovation and deliver industry-leading automation solutions to our partners."
Mark Cook, Co-Managing Director of Sewtec and newly appointed Chief Operating Officer of AIR, said, "This transaction represents an exciting new chapter in Sewtec's long history. I believe AIR is the right partner for Sewtec as we look to grow our business with existing and new customers. We look forward to leveraging the skills and know-how across AIR to further our ability to invent innovative solutions that help our customers solve complex operational challenges. As Chief Operating Officer of AIR, I look forward to working with team members across the Company to execute on our shared vision of creating a cohesive, global industrial automation platform."
Matt Cwiertnia, Partner and Head of the Ares Private Equity Group, said, "Ares is proud to continue its support of AIR's growth through this latest acquisition of Sewtec. This reinforces our shared goal of building AIR into a scaled player with a global manufacturing footprint, and we look forward to continuing to work with the Company to meet the significant and growing demand for high quality automation solutions."
Terms of the transaction were not disclosed.
About Automated Industrial Robotics Inc.
AIR is an industrial automation company focused on acquiring and facilitating the growth of leading industrial automation companies serving diverse end markets with strong operational histories and tenured management teams. Grounded in a culture of safety, transparency and pursuit of excellent customer experience, AIR seeks to leverage complementary teams and technologies to deliver innovative, cost-competitive solutions to address the complex and challenging needs of global businesses. AIR is currently serving a global customer base across three facilities located in the United States, Ireland and the United Kingdom.
About Sewtec Automation
Sewtec Automation provides industrial automation solutions for global blue-chip clients in the pharmaceutical, medical devices, food and beverage, personal care, pet care and e-commerce markets. Sewtec specialises in providing bespoke solutions to address its customers' most challenging automation requirements. It currently employs over 170 high skilled people at its manufacturing facility in Wakefield, UK and at its new satellite office in Taunton, UK. For more information, please visit the Sewtec Automation website at https://www.sewtec.co.uk/.
About Ares Management Corporation
Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of June 30, 2024, Ares Management Corporation's global platform had over $447 billion of assets under management with more than 2,950 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.
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