Hitachi Ltd. has reached an agreement to acquire a German robotics and automation firm that will join and expand the global presence of Holland-based JR Automation Technologies LLC.
Executives with Hitachi, which acquired JR Automation in 2019 for $1.42 billion, on Friday announced the 71.5 million Euro ($76.4 million) all-stock purchase of MA micro automation from MAX Management GmbH. MAX Management is a subsidiary of MAX Automation SE.
The deal will expand JR Automation’s global footprint and also grow the company’s support capabilities in Europe and bolster its presence in the medical technology market, said Dave DeGraaf, who was named CEO of JR Automation in 2023.
“MA micro automation provides engineering, build and support expertise with established capabilities in complex vision applications, high-speed and high-precision automation technologies,” DeGraaf said in a statement. “As we integrate this new dimension, impressive talents and abilities of the MA micro automation team we further enhance our ability to serve our customers, creating a more robust and globally balanced offering.”
Additional terms of the deal, which is expected to close in the second half of 2024, were not disclosed.
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Founded in 2003 as a carve-out from Siemens, St. Leon-Rot, Germany-based MA micro automation serves high-growth med-tech automation markets. The company produces, assembles and tests medical and optical components such as contact lenses, in vitro and diabetes diagnostics consumables, and injection molding for medical uses. The company employs about 200 people and generated the equivalent of $49.7 million in revenues in 2023.
“Following the successful establishment and growth of MA micro automation within the attractive automation market for medical technology products, we are now opening a new chapter,” MA micro automation CEO Joachim Hardt said in a statement. “Our partnership with Hitachi will not only strengthen our global competitive position, but we will also benefit from joint technological synergies and a global market presence. We look forward to a synergistic partnership with Hitachi and JR Automation.”
JR Automation has more than 20 locations across North America, Europe and Southeast Asia, and serves customers in a variety of industries such as automotive, life sciences, e-mobility and consumer and industrial products.
The company was founded in 1980 by the late Ken Assink and over the past 44 years has grown into an Industry 4.0 powerhouse along the lakeshore.
Kentwood-based manufacturing investment firm Huizenga Group acquired JR Automation from Assink in 1995, growing the company’s annual revenue from $14 million at the time of the deal to about $180 million when it sold to New York City private equity firm Crestview Partners in 2015. By 2019, JR Automation’s sales had grown to more than $600 million when Crestview sold the company to Japanese conglomerate Hitachi for $1.42 billion.
DeGraaf took over as CEO at JR Automation in 2023 following the retirement of former CEO Craig Ulrich. DeGraaf came to JR Automation from Holland-based lithium-ion battery maker Volta Power Systems.
DeGraaf told Crain’s Grand Rapids Business last year that his goal was to develop and evolve Hitachi’s vision for the company, which recently has included more data collection and integrating more artificial intelligence.
“The teams at JR are immensely talented, and they come up with some really creative solutions to problems,” DeGraaf said at the time. “There’s a very exciting future for JR.”
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