US automation group buys UK’s Sewtec Automation
22 August 2024 
A US-headquartered industrial automation group, Automated Industrial Robotics (AIR), is buying the UK company Sewtec Automation, for an undisclosed sum. Los Angeles based AIR says the acquisition will expand its geographic footprint, strengthen its engineering capabilities and position it to capitalise on the growing global demand for manufacturing automation from a broad range of customers.
Sewtec, whose head office is in Wakefield, West Yorkshire, employs more than 170 people and generates annual revenues of more than £30m. The company, founded more than 40 years ago, has a 75,000ft2 (7,000m2) design and manufacturing facility, and operates in sectors including pharmaceuticals, medical devices, food and beverage, personal care, pet care and e-commerce. It has supplied more than 7,000 industrial automation systems.
Sewtec’s founders came from Singer Sewing Machines’ R&D department and set up the company in 1983 to manufacture industrial sewing machines for the automotive industry. In 1990, it sold its first robotic system, and in 1999 entered the tobacco market. In 2003, Sewtec sold its first automation system to the pharmaceutical industry, and in 2007 it entered the medical devices and pet care markets. In 2017, the private equity firm, Endless backed a management buyout at Sewtec.
Earlier this year, Sewtec started to build a 16,000ft2 (1,500m2) extension to its headquarters in Silkwood Park, which had opened just four years before. The new area was needed to extend the company’s test and assembly capacity.
Sewtec will join AIR’s existing portfolio which consists of Totally Automated Systems (TA Systems), located in Michigan, US, and Modular Automation (Modular), located in County Clare, Ireland. AIR now has more than 400 employees and a footprint of around 275,000ft2 (25,500m2) in the US, Ireland and the UK.
By leveraging the engineering experience and capabilities of these hubs, AIR is aiming to deliver differentiated industrial automation solutions and services to global customers. It expects to expand further through strategic acquisitions of industrial automation companies, as well as continuing to invest in organic growth.
“The acquisition of Sewtec represents a significant milestone for AIR,” say its executive chairman, Brian Klos, and CEO, Darragh de Stonndún, in a statement. “We have long been admirers of the quality of the automation solutions Sewtec has developed for their loyal customer base. We believe that sharing the respective strengths of Sewtec, TA Systems and Modular through AIR will help accelerate our businesses’ abilities to enhance efficiencies, drive technological innovation and deliver industry-leading automation solutions to our partners.”
Mark Cook, joint managing director of Sewtec, has been appointed as AIR’s chief operating officer. “This transaction represents an exciting new chapter in Sewtec’s long history,” he says. “I believe AIR is the right partner for Sewtec as we look to grow our business with existing and new customers.
“We look forward to leveraging the skills and know-how across AIR to further our ability to invent innovative solutions that help our customers solve complex operational challenges,” Cook adds. “As COO of AIR, I look forward to working with team members across the company to execute on our shared vision of creating a cohesive, global industrial automation platform.”
The Sewtec acquisition has been funded mainly by investment from an Ares Management Private Equity fund. Matt Cwiertnia, partner and head of the Ares Private Equity Group, says the deal “reinforces our shared goal of building AIR into a scaled player with a global manufacturing footprint”. Ares manages more than $447bn of assets and 2,950 employees in North America, Europe, Asia-Pacific and the Middle East.
