LOS ANGELES - Automated Industrial Robotics Inc. (AIR), a company specializing in industrial automation, has announced the acquisition of UK-based Sewtec Automation, a move aimed at expanding its global presence and engineering capabilities. The acquisition, which was primarily funded by an investment from a private equity fund managed by Ares Management (NYSE:ARES), aligns with AIR’s growth strategy to meet the rising international demand for manufacturing automation solutions.
Sewtec, established in 1983, has a team of over 170 professionals and operates from a 75,000 square-foot facility in the UK. It is recognized for its bespoke automation systems which serve a variety of sectors, including pharmaceuticals, medical devices, and e-commerce. Sewtec’s integration into AIR’s portfolio, which includes Totally Automated Systems and Modular Automation, brings AIR’s total workforce to over 400 and expands its automation hub footprint to approximately 275,000 square feet across the United States, Ireland, and the United Kingdom.
Brian Klos, AIR’s Executive Chairman, and CEO Darragh de Stonndún expressed their enthusiasm for the acquisition, highlighting Sewtec’s reputation for high-quality automation solutions and customer loyalty. They anticipate that the consolidation of strengths across the AIR portfolio will enhance service efficiency and technological innovation.
Mark Cook, Co-Managing Director of Sewtec and newly appointed Chief Operating Officer of AIR, sees the transaction as a promising development for Sewtec’s future. He is keen to utilize AIR’s collective expertise to advance innovative solutions that address complex operational challenges.
Matt Cwiertnia of Ares Management voiced continued support for AIR’s expansion, underscoring the objective to establish AIR as a significant player with a comprehensive global manufacturing footprint. He also noted the substantial demand for premium automation solutions that the acquisition is poised to meet.
The financial terms of the deal were not disclosed. AIR is known for its focus on acquiring and nurturing industrial automation companies with diverse market applications and established management teams. The company emphasizes safety, transparency, and a commitment to customer satisfaction as core values.
This strategic move is based on a press release statement and contributes to AIR’s pursuit of creating a global industrial automation platform.
In other recent news, Hyatt Hotels (NYSE:H) Corporation reported the sale of Hyatt Regency Orlando and an adjacent land parcel for approximately $1.07 billion to RIDA Development Corporation and an Ares Management Real Estate fund. This transaction aligns with Hyatt's strategy to divest owned properties, generating $2.6 billion in gross proceeds over the past three years. Both RIDA and Ares have committed to significant renovations of the hotel and future development of a new Grand Hyatt hotel on the adjacent 45 acres.
In parallel, Ares Management Corporation declared a third-quarter common dividend of $0.93 per share, marking a 21% increase from the previous year, and reported a record $447 billion in assets under management, an 18% increase year-over-year. TD Cowen has shown confidence in Ares Management by raising its price target from $158.00 to $162.00, indicating a positive outlook for the company. Ares Management also plans to launch new products in the private wealth channel and explore merger and acquisition opportunities to scale up in large markets.
These recent developments highlight the strategic moves of both Hyatt Hotels Corporation and Ares Management Corporation, reflecting their ongoing efforts to optimize operations and generate value.
InvestingPro Insights
In light of Ares Management's investment in Automated Industrial Robotics Inc.'s (AIR) recent acquisition, Ares Management Corporation (ARES) has shown notable financial metrics and activity that could be of interest to investors. ARES has demonstrated a commitment to shareholder returns, having raised its dividend for 4 consecutive years and maintained dividend payments for 11 consecutive years. This is underscored by a dividend yield of 2.57% and a significant dividend growth rate of 20.78% over the last twelve months as of Q2 2024.
While ARES's dedication to dividends is clear, the company's valuation metrics suggest a premium market position. It is currently trading at a high earnings multiple, with a P/E ratio of 72.93, and a forward-looking P/E ratio for the last twelve months as of Q2 2024 standing at 97.33. Additionally, ARES's Price / Book ratio for the same period is 22.63, indicating a high valuation compared to its book value.
Investors considering ARES as part of their portfolio should note that analysts have revised their earnings estimates downwards for the upcoming period, which could impact future performance. Moreover, ARES has shown a high return over the last year, with a one-year price total return of 51.53% as of the latest data. For more detailed analysis and additional InvestingPro Tips, interested parties can find a wealth of information on ARES at InvestingPro's ARES page, which lists over 10 additional tips to guide investment decisions.
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