Manufacturer of end-of-arm-tools (EOAT) for industrial automation applications

Deal Facts
  • AGIC acquired a majority stake of Gimatic in April 2016 with minority re-investment from the founder & CEO and the previous private equity fund
  • Exited to US-listed Barnes Group in October 2018

Business Overview

  • Founded in 1985, Gimatic is a leading and fast-growing global player in developing, manufacturing and supplying of automation components / robotic accessories and application specific EOAT solutions
  • The company provides a complete offering of pneumatic gripper solutions, mechatronic gripper solutions, and various sensors for automation and grippers
  • Gimatic relies on a well-organized, highly reliable network of 20 sister companies and multiple distributors enabling customer proximity and allowing to build specific solution for the given need

Investment Thesis

  • Industrial automation in general and gripping, lifting and manipulating solutions are key drivers for productivity increases in a large number of industries and enjoy strong secular growth globally
  • Benefiting from significant growth in material handling applications across different end markets
  • Substantial growth opportunities in the Asian markets, in particular in the strongly growing Chinese market where Gimatic’s presence was nascent at AGIC’s entry
  • Limited exposure to industrial cycle risks due to mission-critical nature of components resulting in high customer lock-in and large share of repeat revenue streams

AGIC Value Added

  • AGIC developed and implemented a go-direct transformation for Gimatic in China, Japan, S. Korea and India, guiding and supporting it in building a direct sales force and greatly expanding its coverage and after-sales service
  • Supported management in setting up new sales & service subsidiaries as well as engineering competence centres in Europe and Asia, and rolling out ERP and CRM systems globally
  • Evaluated several potential M&A opportunities across the U.S., Europe and Asia and supported the acquisition of supplier in Italy and of minority interest of existing subsidiaries