The Manchester and Tokyo teams of GCA have advised Japanese listed manufacturer Sumitomo Heavy Industries (SHI), a manufacturer and distributor of power transmission and control equipment, on the GBP100 million acquisition of Invertek Drives.
SHI’s current strategy aims to strengthen and expand its business by integrating new technologies in the areas of electric motors and frequency drives and achieving global growth in areas such as robotics and positioning, transportation and logistics and food and beverages. As part of this strategy, the EUR172 million acquisition of Lafert, an Italian motor manufacturer, in 2018 signalled SHI’s portfolio and global market reach business expansion.
Founded in 1998, Invertek designs, manufactures and distributes variable frequency drives used to control motors across a range of industrial, commercial and energy saving applications. Headquartered in Welshpool, Wales, Invertek services over 80 countries and in January 2019 expanded its capability by opening a new manufacturing and distribution facility adjacent to its existing site. Invertek has dedicated sales offices across nine jurisdictions, including the USA, China, Germany, Spain, Poland, Czech Republic, Singapore and Malaysia.
Invertek’s technology and production capabilities will allow SHI to extend its product portfolio in the motor control industry, which is becoming increasingly important as demand for IoT automation, labour productivity and energy-saving technology grows. Its combination with Lafert’s motor technology will enable SHI to act of its plans to create an integrated platform centred in Europe.
This marks the seventh time that GCA has advised SHI and the second cross-border transaction involving the European team, GCA Altium. The transaction demonstrates GCA’s cross-border capabilities and global coverage.
Phil Adams, Chief Executive of GCA Altium, says: “This transaction further underlines the global nature of our business following the merger with GCA in 2016. It has been a real honour and pleasure to support the SHI team. Advising our clients on repeat transactions and building trusted long-term relationships underpins our business.”
Shaun Dean, Vice President, Sumitomo Heavy Industries, Ltd, says: “The seamless collaboration across GCA’s Tokyo and Manchester teams played a crucial role in getting this transaction across the line and in finding the ideal strategic partner for SHI to expand its global footprint. GCA’s ability to bring the cultures of Japan and UK together naturally was invaluable in this transaction. Invertek offers a route into a lucrative UK motor control market, and we are confident that the enlarged group will continue to thrive over the coming years.”
