|Burlington Automation Corp. (Canada), market leader with machines for automated cutting of structural steel and tubes, was sold to Lincoln Electric (US).|
|Target Company Name||Burlington Automation Corp.|
|Buyer Name / MBO Team / MBI Team||Lincoln Electric Holdings|
|Buyer Country||United States|
Situation: Burlington Automation Corp. (BAC), located in Hamilton, Ontario, manufactures a single machine, the PythonX. This machine is the market leader in automated plasma cutting of structural steel and tubes. While the company has sold machines on every continent, it needed 3 things – a global distribution network, a global in-field support network and a marquee brand to take the business to the next level. The absolute best partner for the company was clearly Lincoln Electric Holdings (NASDQ: LECO). With $3 billion in revenue, Lincoln is the world leader in welding equipment and related automation technology.
Solution: CFA Toronto West was hired by BAC in May 2013 to assist in negotiating a major investment from Lincoln. BAC’s 50% increase in sales and profits in the previous 12 months complicated negotiations as it was unknown if this was a maintainable trend or just a blip. After several months of negotiations, an LOI was signed late-September 2013. The transaction was completed on November 15, 2013, when Lincoln executed the agreements to make a significant investment in Burlington Automation Corp.
|ICFG Office||Toronto, Canada|
|ICFG Advisory||cfa Toronto West, member of ICFG, advised the seller in 2013.|