Mergers and acquisitions are a natural part of the business world as companies look to expand their capabilities and product offerings. They can range from businesses bringing their expertise together into collaborative partnerships to full takeovers.
The fluid power sector is no stranger to these events, with some of the major acquisitions in more recent years being that of Eaton’s hydraulics business by Danfoss and Bosch Rexroth acquiring HydraForce to expand its compact hydraulics offering.
There have of course been many others in recent years, such that at various industry events Power & Motion has attended it has been said by many that the industry is becoming more consolidated. This is likely to continue as the fluid power industry in particular looks to advance its technological capabilities to meet evolving customer requirements. Acquiring or merging with another company can aid these developments by making it easier to add more in-house technical knowledge.
It can also help to expand a company’s presence in specific industries or regions, an important aspect for the many companies currently undertaking nearshoring and reshoring efforts to provide more localized production and supply of goods.
Mergers and acquisitions will continue to change the landscape of the fluid power and electric motion control sectors. As such, Power & Motion thought it beneficial to review some of those which have recently taken place and what they could mean for the future of the motion control market.
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ABB Acquires Vertical Pump Motor Manufacturer
ABB has signed an agreement to acquire vertical pump motor manufacturer Aurora Motors. The acquisition was undertaken to aid further growth for the Motion Business, enabling its NEMA Motors Division to further strengthen its product offering and supply chain capabilities.
This comes just over a year after ABB’s acquisition of Siemens’ low voltage NEMA motor business, which was also done to help expand its portfolio. Per data cited by ABB, the global NEMA motor industry is roughly $3.4 billion in size and are primarily used in North America to run equipment in industries such as food and beverage, oil and gas, mining & aggregate, and water and wastewater and in applications like those which move air, liquids, and other items.
"This bolt-on acquisition is a strategic move that not only expands our global footprint but also fills key market white spots. This acquisition aligns with our vision to enhance innovation and deliver unparalleled value to our customers worldwide," said Jesse Henson, President of ABB's NEMA Division.
Brennan Industries Acquires Coterflex Industrial to Expand Market Reach
Brennan Industries has acquired Coterflex Industrial, a manufacturer of specialized industrial solutions based in Brazil, helping further expand its offering of fluid power components.
Coterflex Industrial manufactures and imports a number of fluid power components including hydraulic and pneumatic hoses, hose fittings, connections, valves, couplings and more, all of which fit in well with Brennan’s current offering while also bringing additional options into its product mix.
Per Brennan, the acquisition of Coterflex Industrial will help it to meet evolving customer needs in a range of industry sectors such as aerospace, automotive and energy. It will also help expand the company’s geographic footprint, enabling it to serve more customers around the world.
Brennan intends to retain Coterflex’s skilled workforce as well as the management team which will continue operating from their current location to maintain stability for employees and customers alike.
Bucher Hydraulics Strengthens Presence in Nordic Region
Bucher Hydraulics is expanding its presence in the Nordic region with the acquisition of Hydman Oy. Based in Tampere, Finland, Hydman develops tailored hydraulic manifold systems.
With this acquisition, Bucher will be able to expand its support for customers in Europe, including those in the Nordic region, with system solutions as well as individual components. The desire for full system solutions is increasing among OEMs in various markets who want to work with a single supplier to source solutions that are easier to install, enabling them to bring machine designs to market faster.
Bucher intends to retain all of Hydman’s current employees, as well as current leadership. The company will be rebranded as Bucher Hydraulics Oy.
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Motion Expands Fluid Power and Conveyance Offerings
Motion has announced two recent acquisitions — that of Stoney Creek Hydraulics, a specialist in the manufacture and repair of fluid power cylinders, and of conveyor specialist International Conveyor and Rubber (ICR).
Stoney Creek’s hydraulic and pneumatic cylinders are designed for specific customer requirements based on customer designs or those developed in house. Its repair services include cylinder inspection, machining and precision testing.
As a distributor of maintenance, repair and replacement parts as well as provider of various industrial technologies, Stoney Creek’s assets will fit in well with Motion’s offering.
James Howe, President of Motion, said, “As we continue to execute our acquisition strategy to grow our services, we are pleased to welcome Stoney Creek Hydraulics employees to Motion. Their skills and capabilities will bolster our hydraulic offering in Canada and complement our mechanical repair services in the region.”
Meanwhile, the acquisition of ICR will help broaden Motion's offerings from its Conveyance Solutions business unit. ICR provides sales, installation, repair and maintenance of conveyor belts and related system products as well as engineering and design services for custom solutions. It serves customers in a number of industries including:
- mining and aggregates,
- power generation,
- oil and gas,
- construction,
- steel,
- building materials manufacturing,
- package handling and distribution,
- wood/pulp/paper,
- cement and asphalt,
- recycling and marine terminals.
“ICR is highly complementary to Motion, adding seven strategic locations that expand our reach,” said Howe. “ICR introduces new customers and end markets, allowing us to broaden our offerings."
All of ICR's current employees, including its owner-operators, and seven locations around the U.S. will become part of Motion.
Singer Industrial Adds Fluid Tech Hydraulics to its Fluid Power Division
Singer Industrial, a distributor of fluid power and other automation products, has added Fluid Tech Hydraulics (FTH) to its group of partner companies within its Fluid Power Division.
FTH provides specialized hydraulic components and services, including precision machining and repair. Located in Sacramento, CA, the company will help to expand Singer Industrial’s presence in the California market as well as 120 locations around North America.
The company will continue to be led by owner Gail Sparks.
“Gail and the entire Fluid Tech Hydraulics’ team have built an extraordinary business by providing exceptional service to their diversified customer base which aligns perfectly with the Singer Industrial strategy. We are very excited to have them join our team and look forward to expanding our sales and services into California,” said Singer Industrial Fluid Power President, Scott Wojciak.
