Scott Technology prepares to expand its American client
base. Photo supplied.
Scott Technology is spending $US5.4 million ($NZ6.23
million) buying RobotWorx, an industrial robot integrator based
in Ohio, North America.
The acquisition is designed to help expand Dunedin-based
Scott's market share in the Americas.
In an announcement to the NZX, chairman Stuart McLauchlan
said North America had traditionally been Scott's biggest
market, representing 37% of 2013 group sales, mainly in the
appliance, mining and superconductor industries.
Last year, Scott opened a sales office in Chile which focused
on the mining industry in North and South America.
Further opportunities for growth existed in those industries
through greater in-market presence, as well as the
introduction of Scott's world-leading meat processing,
milking and superconductor products to the North American
''Robotics is a key enabler in providing automated solutions
to all of the industries and markets Scott serves,'' Mr
Chief executive Chris Hopkins said RobotWorx was an exciting
acquisition for Scott, with strategic potential for both
RobotWorx was one of the best-known industrial robot
integrators in North America, with an internet presence that
dominated its competitors worldwide.
The internet presence was driven by an extensive portfolio of
URLs, including www.robots.com, he said.
''RobotWorx has the capability of integrating multiple
manufacturers' robots ... and has implemented thousands of
successful robotic installations for applications ranging
from welding to palletising.''
RobotWorx had been in business for more than 21 years and
differentiated itself from all other integrators and from
their competitors in the industry, Mr Hopkins said.
Many inquiries have been received from businesses seeking to
install robotic solutions which RobotWorx was unable to
supply because they was beyond its level of expertise.
The inquiries provided opportunities to expand the business
by applying the skill, expertise and experience gained by
Scott in providing its innovation solutions to the appliance,
mining and meat processing industries, he said.
RobotWorx also received more than 270,000 foreign visits to
its main website annually, visits it had not catered to in
''These forgone opportunities show great potential to be
converted into engineered solutions with additional skills
contributed by Scott,'' Mr hopkins said.
Scott also saw the opportunity to dominate the internet in
areas of its own expertise, significantly raising its profile
in both its key North American market and beyond, he said.
The robot industry was expected to grow due to its promising
output of high quality products at a lower price.
With the ability to offer robotic automation for a wide
variety of industries, RobotWorx, together with Scott, had
significant ability to tap into the profitable growing
market, he said.
RobotWorx chief executive and owner Keith Wanner would work
with Scott to ensure a smooth transition.
Scott Technology buys RobotWorx for
$US5.4 million ($NZ6.23 million) funded by bank debt of
$US4.5 million and $US900,000 of shares in Scott issued to
A further $US2.3 million of shares would be issued over a
period of three years if specified earnings targets were met.
The shares were issued at $1.62. They last traded at $1.82.