- Lincoln Electric ( NASDAQ: LECO ) has agreed to acquire privately-held automation engineering firm, Fori Automation for a cash purchase price of $427M.
- The transaction will be funded using with cash on hand and arranged credit. The proposed deal is subject to regulatory approval and other customary closing conditions and is expected to close in the fourth quarter of 2022.
- Founded in 1984, Fori Automation designs and manufactures multi-armed automated welding systems, with an extensive range of automated assembly systems, automated material handling solutions, automated large-scale, industrial guidance vehicles, and end of line testing systems.
- It is based in Shelby Township, Michigan, with additional operations in six international facilities across Europe, Latin America and Asia.
- The acquisition is expected to expand Lincoln Electric’s ( LECO ) annual automation sales by ~$225M at comparable EBIT margins to LECO current automation portfolio, and is expected to be accretive to earnings.
- It will also help drive Lincoln's Higher Standard 2025 strategic goal of achieving $1B in automation sales by 2025, extend its automation footprint in South Korea and India, and better position the company to capitalize on accelerating investments in automotive EV platforms.
For further details see:
Lincoln Electric to acquire Michigan automation engineering firm