Yesterday, Piab announced the acquisition of US-based SAS Automation – a leading developer and manufacturer of mechanical grippers and robotic end-of-arm tooling systems. The strategic add-on complements Piab’s existing product offering and strengthens its relevance to the customer base.

EQT VII portfolio company Piab is a global technology leader within industrial automation and robot components. Founded in 1951 by the Swedish Tell family, Piab supplies a broad set of vacuum ejectors, conveyors and suction cups for lifting and holding objects in automated factory processes. Piab’s products drive productivity and energy-efficiency, and improve the working environments for customers across a broad range of end-markets.

Underlying megatrends, including an increasing number of manufacturing sectors prone for automation, higher wages and productivity requirements, alongside a rapidly growing global e-commerce market are all supporting an increasing demand for automation and robotization in the smart factory. The company’s line-critical products are used across multiple industries, primarily within packaging, automotive, food and pharmaceuticals. The importance of cost-efficiency and work environment within these industries underpin Piab’s strong growth trajectory.

“Since EQT VII acquired Piab in January 2016, management has accelerated measures to strengthen Piab’s position, both organically and through the acquisitions of adjacent technology leaders Kenos and Vaculex. With the three completed add-ons so far including SAS Automation, we see clear revenue synergies enabled by offering an expanded product portfolio through the existing channel network. Piab will now be able to respond to customers demand for a single supplier of both vacuum-based and mechanical gripping technology”, says Harry Klagsbrun, Partner and Investment Advisor to EQT VII.

The eastern growth opportunity

With the add-on of SAS Automation, Piab takes an important step forward to becoming a one-stop gripper shop, while in parallel fortifying its presence across North America. Similarly, Piab has strengthened the management team in Asia and are accelerating growth in the region, particularly in China. As the country is expected to be the number one global consumer of industrial and collaborative robot systems going forward, it is natural that it is one of Piab’s focus markets for continued global expansion.

“China alone expects to enjoy a 20% annual growth of industrial robots over the foreseeable future, which is one of many reasons for why we feel confident that the market hold significant growth potential for our business. In order to be able to capture this growth, we have over the last year scaled up our operations with both strengthened regional and local leadership”, says Anders Lindqvist, CEO at Piab.

Investments in R&D and commercial excellence

With some 60 years of experience, Piab is the frontrunner in a highly fragmented market. With more than 50% of sales generated from patented products, Piab enjoys a technology leadership with innovative, high-quality and mission-critical products in an environment where customers continuously require new technology solutions. Supported by EQT VII, Piab continues to drive for advancements in R&D with the ambition to future-proof the business through an increasingly diversified product offering.

Recent launches across segments include a new vacuum conveyor dedicated to fragile products, food contact suction cups and the new piCOMPACT all-in-one vacuum ejector. The piCOMPACT with IO-link demonstrates Piab’s strong potential within Industry 4.0. Condition information is sent real-time to the operator enabling predictive maintenance and auto-orders. Looking ahead, Piab has a well-stocked product pipeline with new launches across all product segments.

In addition to leadership improvements across Asia, Piab’s management team has recently been further strengthened with senior and second-level leadership in the US, Europe, and Latin America. To truly stay local-with-locals and secure the necessary expertise on the ground, Piab has reinforced its regional commercial organization in the US, Germany, Brazil and Spain, both through a growing direct sales force as well as a broader distributor network.

Piab’s entry into mechanical gripping through the acquisition of SAS Automation, the acceleration of growth in China, as well as increased investments into R&D and commercial excellence are all key parts in delivering on Piab’s long-term strategy, which is well on track.

Danish family company Danfoss has acquired Visedo, a company specializing in electric powertrains and components. Visedo is a world-leading expert in electric solutions for the off-highway and marine markets, and a Tesi portfolio company since 2013. With this step, Danfoss is responding to the growing customer demand for electric solutions to reduce emissions and pollution and to increase productivity. Visedo is headquartered in Lappeenranta in Finland.

Kimmo Rauma, Head of Visedo, Picture: Junnu Lusa

“Acquiring new innovative technology is an important part of our investment in growth, and I am excited about the really great Visedo team joining Danfoss and our future journey. Electrification is a fast-developing area and holds tremendous potential, and Visedo is a great example of how we can focus on customer needs and at the same time strengthen our offering by providing a broader range of solutions,” says Kim Fausing, president and CEO.

“This is a great day for Lappeenranta,” says Tuomo Rönkkö, Chairman of the board for Visedo. “The acquisition acknowledges the knowhow and excellence built over the years between Visedo and the Lappeenranta University of Technology. The long-term commitment of the original investors and the ability to find the best experts to work for the company have been the base for this success story. We are happy the story will continue and bring more investments to the entire region.”

Visedo will be integrated into the Danfoss Power Solutions business segment. The acquisition of this electric systems business is in line with Danfoss’ strategic focus on adding electric solutions as a key competency and a key part of the company’s approach to enable electrification across the global businesses.

“With this acquisition, we position Danfoss and the Danfoss Power Solutions business even stronger. We see a growing demand for electric solutions within off-highway vehicles and the marine market in response to the more stringent emissions regulations being imposed in these markets, as well as efficiency and productivity gains that these solutions bring. Danfoss will, based on this acquisition, continue to invest in electrification to further strengthen our position in the industry. I look forward to welcoming the highly experienced and dedicated Visedo team to Danfoss and to our business,” says Eric Alström, President, Danfoss Power Solutions.

“Joining forces with Danfoss means a quantum leap for our mission to end pollution with our electric solutions. Together with Danfoss, we will have more capacity and investment for greater innovation and market opportunities,” says Kimmo Rauma, Head of Visedo.

“Visedo has been able to quickly position itself as the leading technology provider in its sector. It has shown that a start-up can disrupt a rather conservative market with an intelligent hardware driven business model by combining electrical engineering and software development in which Finland has long and successful history. Above all Visedo is all about its highly skilled personnel and exceptionally strong corporate culture,” comments Jussi Sainiemi, Investment Director at Tesi.

The acquisition includes all Visedo subsidiaries globally and a design and manufacturing site located at its headquarters in Lappeenranta.

The parties have not disclosed the purchase price or other conditions of the acquisition.

For more information:
Danfoss Media Relations, Tel: + 45 70 20 44 88

Jussi Sainiemi, Investment Director, Tesi
+358 40 564 4660
jussi.sainiemi@tesi.fi

Founded in 2009, Visedo is a Finnish manufacturer of smart hybrid and electric drivetrains for electric vehicles across the marine industry, commercial vehicle and heavy-duty machinery sectors. Visedo powertrains are suitable for hybrid and electric systems within the power range of 30-2,000kW. Visedo’s head office is located in Lappeenranta, Finland, and the company has subsidiaries in the Netherlands and Hong Kong. Visedo has a broad, international client base, with exports to Europe and Asia representing 90 percent of its sales. More information at www.visedo.com

Danfoss engineers technologies that enable the world of tomorrow to do more with less. We meet the growing need for infrastructure, food supply, energy efficiency and climate-friendly solutions. Our products and services are used in areas such as refrigeration, air conditioning, heating, motor control and mobile machinery. We are also active in the field of renewable energy as well as district heating infrastructure for cities and urban communities. Our innovative engineering dates back to 1933 and today Danfoss is a world-leader, employing 26,000 employees and serving customers in more than 100 countries. We are privately held by the founding family. Read more about us at www.danfoss.com.

Tesi (Finnish Industry Investment Ltd) is a venture capital and private equity company that accelerates companies’ success stories by investing in them directly and via funds. Tesi always invests together with other investors, providing them with access to high quality deal-flow in Finland. Our investments under management total 1 billion euros and we have altogether 723 companies in portfolio. www.tesi.fi / @TesiFII