As manufacturers strive to optimize and improve profitability, they often use various business strategies to stay competitive. These actions include mergers, acquisitions, promotions, layoffs, funding, and much more. Below are just a few of the companies that are making moves and making headlines in the industrial sector.
Acquisition: Integrated Power Services (IPS) has acquired B&B Transformer, which specializes in the remanufacturer of oil-filled, distribution-class transformers. This purchase will expand IPS’s portfolio of power management equipment and services. In a recent quote, Shannon Moses, IPS Executive Vice-President for Power Management, said, “This strategic acquisition strengthens IPS’s power management portfolio, enhancing our ability to deliver comprehensive solutions to a diverse range of industries. Renowned for its expertise in single- and three-phase transformer repair, remanufacturing, and custom-engineered design, B&B Transformer’s integration into the IPS family promises an enriched array of offerings for our combined customers.”
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Capital: Ara Partners has successfully secured $335 million of non-recourse financing. Ara Partners and its portfolio company, Vacuumschmelze GmbH & Co. KG, will use the money to build a U.S. permanent magnet manufacturing facility. In a recent quote, Tuan Tran, Partner at Ara Partners, said, "We are thrilled with the finance market's appetite for this first-of-its-kind facility, a cornerstone in solidifying the United States electric vehicle value chain, and look forward to continuing to work with our lending partners. We are grateful for the support from our local and state governments and the federal initiatives that have made this project possible, and we extend our sincere thanks to General Motors for being a key partner in this endeavor."
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Acquisition: L2L has just acquired SwipeGuide, a company that focuses on mobile-first frontline training and visual job aids for the manufacturing workforce. L2L, which specializes in connected workforce solutions, hopes the acquisition will improve the company’s training and skills management capabilities by offering an intuitive solution for capturing and distributing critical operational knowledge. In a recent quote, L2L CEO John Davagian said, “SwipeGuide adds tremendous value to the L2L Platform. Now, our customers can reap the benefits not only of actionable manufacturing data at their fingertips but also a powerful frontline training solution that helps every worker perform like a seasoned pro. This combination is a huge step forward for connected workforce technology.”
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Divestment: PPG has announced plans to sell its silicas products business to QEMETICA S.A., a manufacturer of soda ash, silicates and other specialty chemicals, for approximately $310 million. This divestment is a result of PPG’s evaluation of strategic alternatives for the business. In a recent quote, PPG Chairman and Chief Executive Officer, Tim Knavish, said, “After conducting an extensive strategic review process, we are pleased to reach an agreement with QEMETICA and believe it is well positioned to lead the silicas products business forward. This transaction will allow us to further focus our resources on our technology-differentiated coatings and specialty products businesses to accelerate our organic growth and drive increased shareholder value creation. I want to thank the silicas products business employees for their dedication and commitment throughout the years to deliver the quality products and services that meet our customers’ evolving needs.”
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Acquisition: D.C. Humphrys has announced its acquisition of Gosport Manufacturing, which specializes in producing tarps and other industrial textiles. Humphrys, which has been manufacturing textiles for 150 years, does not plan to change operations or personnel at Gosport Manufacturing and hopes the acquisition will add experience and capacity to the growing company. In a recent quote, Ron B. Nissenbaum, CEO of Humphrys, said, "Our decision to acquire Gosport Manufacturing was driven by our respect for the business Joseph and his family have built. Gosport's expertise aligns closely with ours, making this a natural fit. Keeping the business in Gosport and providing stability and continuity for the current employees was a priority in the acquisition."
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