Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Scott Technology to buy RobotWorx for up to US$7.7M

Scott Technology to buy American robot integrator for up to US$7.7 million

May 14 (BusinessDesk) - Scott Technology, the industrial automation firm, has bought Marion, Ohio-based RobotWorx for up to US$7.7 million in cash and shares as it looks to expand its footprint in North America.

The Dunedin-based company will pay US$5.4 million in cash, funded by bank debt, and US$900,000 in Scott shares for the US robot integrator, with potential earn-out of up to US$2.3 million in shares if certain targets are met over the coming three years, it said in a statement. The shares have been issued at $1.6157 apiece, a discount to the $1.80 price the stock opened at. The shares rose 1.1 percent to $1.82 after the announcement.

RobotWorx programmes and fits-out industrial robots so as to allow them to perform automated manufacturing, with the capability to integrate robots from different manufacturers.

“The transaction will be earnings positive for the Scott Group, while the earn-out arrangement will provide a strong incentive for the vendor and RobotWorx management to continue to grow the business,” Scott said in a statement. “The acquisition of RobotWorx will provide Scott with a strong strategic base to grow its market share in the Americas.”

In March, the Dunedin manufacturer reported a 63 percent slide in first-half profit as the strong kiwi dollar eroded export earnings and stiff competition pushed down margins.

At the time, the company said it had evaluated a number of potential acquisitions in the period, rejecting some while others remained under consideration.

RobotWorx chief executive and owner Keith Wanner will work with Scott to ensure a smooth transition, the company said.

Scott said one of the attractions was RobotWorx’s internet presence, which it says dominates global competitors.

“By applying the RobotWorx digital marketing strategy to the Scott business model, Scott will also have the ability to dominate the internet in areas of Scott expertise, significantly raising its profile in both its key North American market and beyond,” the company said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news