Lincoln Electric to acquire Fori Automation
Lincoln Electric Holdings has signed a definitive agreement to acquire Fori Automation, a privately held automation engineering firm founded in 1984, for $427 million in cash.
Headquartered in Shelby Township, Michigan, with additional operations in six international facilities across Europe, Latin America and Asia, Fori designs and manufactures multi-armed automated welding systems, with an extensive range of automated assembly systems, automated material handling solutions, automated large-scale, industrial guidance vehicles (AGVs), and end of line testing systems. Fori primarily serves automotive and aerospace OEMs.
The acquisition will accelerate Lincoln’s Higher Standard 2025 strategic goal of achieving $1 billion in automation sales by 2025 with the addition of new and innovative automated capabilities including large-scale assembly, automated material handling solutions and end of line testing systems. These complementary solutions will extend Lincoln’s market presence within the automotive sector, better position Lincoln Electric to capitalize on accelerating investments in automotive EV platforms, and offer cross-selling growth opportunities to Lincoln’s industrial customers, the company said. The acquisition would also extend Lincoln’s automation footprint in South Korea and India and expand Lincoln’s existing presence in Europe, China and Latin America. The Fori Automation acquisition is expected to increase Lincoln Electric’s annual automation sales by approximately $225 million.
“This transaction represents an exciting growth opportunity for both organizations by bringing together best-in-class automation platforms and engineering expertise to drive value for all of our stakeholders and accelerate our automation growth and resources to advance our Higher Standard 2025 strategy,” said Christopher L. Mapes, Lincoln’s chairman, president and CEO. “Customers are increasingly investing in automation to efficiently grow their businesses, and our organizations are at the forefront helping automotive, aerospace, and industrial customers achieve their operational goals.”
The acquisition is expected to close in the fourth quarter of 2022.
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