Sumitomo Heavy Industries, Ltd. announced that the company has reached an agreement to acquire the entire issued share capital of UK-based variable frequency drive manufacturer Invertek Drives Ltd. Estimated transaction value of this acquisition is maximum £100 million GBP. The closing date of this transaction is anticipated in early November 2019.
With annual sales of £35 million GBP and approximately 240 employees, Invertek is a leader in the design, manufacture and distribution of variable frequency drives (VFD) used to control motors in a wide variety of industrial, commercial and energy saving applications, such as conveyors, fans, pumps and other industrial machinery. Equipped with flexible high-mix low-volume production capabilities and excellent motor control software technology, it has an extensive global customer base in over 80 countries. Its worldwide headquarters, innovation and manufacturing center is located at Welshpool, United Kingdom. In January 2019, to expand its capability, it opened a new manufacturing and distribution facility adjacent to its existing site.
SHI’s current strategy is to further strengthen and expand its business by integrating new technologies in the areas of electric motors and VFDs and achieving global growth in target segments, such as robotics and positioning, material handling and intralogistics and food and beverages. As part of this strategy, SHI acquired Italian industrial motor manufacturer Lafert S.p.A in 2018, expanding its business in terms of both portfolio and global market reach.
Invertek’s technology and production capabilities will allow SHI to extend its product portfolio in the motor control industry, which is becoming increasingly important as demand for IoT, automation, labor productivity, energy-saving technology and applications grows. Moreover, its combination with Lafert’s motor technology will enable SHI to respond to the advanced needs of the customer, as it aims to create an integrated platform centered in Europe, the technology hub of its target market, with capabilities to provide a comprehensive range of products including gears, motors and controls.