LOS ANGELES - Automated Industrial Robotics Inc. (AIR), a global player in industrial automation, has announced the acquisition of Robotics & Drives (RDS), an Ireland-based provider of innovative robotic solutions. This strategic move is set to expand AIR's footprint in Europe and enhance its capability to integrate advanced robotics into automated systems.
RDS, founded in 2005, is recognized for developing intelligent robotics solutions that cater to specific customer needs, aiming to improve quality, efficiency, and competitiveness. The company boasts a significant presence in Ireland, serving sectors such as consumer packaged goods, food and beverage, and pharmaceuticals with a team of approximately 50, primarily engineers.
The acquisition is expected to bolster AIR's product offerings and drive innovation within the company. With RDS's expertise, AIR now operates with over 500 employees and a 300,000-square-foot automation hub footprint across the United States, Ireland, and the United Kingdom.
In conjunction with the acquisition, Vivian Farrell has been promoted to President of AIR, Ireland. Farrell, who has been the CEO of Modular Automation since its acquisition by AIR in 2023, will now oversee AIR's growth strategy in Ireland, including the newly integrated RDS.
AIR's leadership expressed enthusiasm for the acquisition, citing alignment with RDS's team and the potential for growth. Ken McNevin of RDS also conveyed his confidence in AIR's ability to enhance customer service and offerings.
Financial terms of the transaction, which was primarily funded by an investment from an Ares Management (NYSE:ARES) Private Equity fund, were not disclosed.
This acquisition is part of AIR's broader strategy to leverage complementary teams and technologies to deliver cost-competitive solutions to meet the complex needs of global businesses. The information is based on a press release statement.
In other recent news, Ares Management has been making significant strides with recent acquisitions and analyst upgrades. The company's acquisition of Walton Street Mexico (WSM) is set to enhance its portfolio by approximately $2 billion in industrial real estate assets. This acquisition, expected to conclude in the fourth quarter of 2024, is anticipated to be immediately beneficial to Ares Management's earnings.
TD Cowen has reiterated a Buy rating for Ares, signaling confidence in the firm's ongoing growth. Similarly, CFRA has raised its price target for Ares to $170, reflecting a positive outlook based on the expanding private credit market.
On the other hand, Redburn-Atlantic initiated coverage on Ares Management with a Neutral rating. The National Football League has also approved Ares Management, among other private equity firms, to acquire up to 10% stakes in its teams.
In addition to these developments, Ares Management reported a 21% increase in its third-quarter common dividend, and an 18% year-over-year increase in total assets under management, reaching $447.2 billion in the second quarter of 2024. These recent developments indicate a robust growth trajectory for the company.
InvestingPro Insights
As AIR expands its footprint through the acquisition of RDS, it's worth noting the financial performance of Ares Management (NYSE:ARES), the investment firm behind this strategic move. According to InvestingPro data, Ares Management boasts a substantial market capitalization of $50.2 billion, reflecting its significant presence in the alternative investment management sector.
Ares Management's financial strength is evident in its revenue of $3.22 billion for the last twelve months as of Q2 2024, with a robust gross profit margin of 48.01%. This financial stability positions Ares well to support strategic investments like AIR's acquisition of RDS.
InvestingPro Tips highlight Ares Management's impressive track record, having raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years. This consistent dividend growth, coupled with a current dividend yield of 2.32%, may appeal to income-focused investors interested in companies that support industrial automation growth.
The company's stock performance has been noteworthy, with a strong return of 51.98% over the past year and trading near its 52-week high. This positive momentum aligns with AIR's expansion strategy and could indicate investor confidence in Ares Management's investment decisions.
For those interested in a deeper analysis, InvestingPro offers 13 additional tips for Ares Management, providing a comprehensive view of the company's financial health and market position.
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