Falfurrias Capital Partners Facilitates E Tech Group's Purchase of Automation Group
Acquisition marks E Tech's fourth add-on since Falfurrias' platform investment in 2018
WEST CHESTER, Ohio and MODESTO, Calif., Oct. 5, 2023 /PRNewswire/ -- Falfurrias Capital Partners today announced E Tech Group's acquisition of Automation Group, a California-headquartered system integrator specialized in automation, robotics and cybersecurity. Terms were not disclosed.
The deal is E Tech's second add-on acquisition in 2023, following the purchase of E-Volve Systems in February. Since Falfurrias' original platform investment in early 2018, E Tech has completed four acquisitions, successfully integrating Glenmount Global Solutions in 2018 and Superior Controls in 2019. The combined company is one of the largest independent automation engineering and system integration firms in North America, with approximately 30 locations and 600 team members.
Automation Group, whose clients include the world's largest wine producer, will operate under the name "Automation Group, an E Tech Group Company." Founder Brad Stegmann will step down from his CEO role but will consult with the business during the transition. Automation Group President Randy Ruano will remain with the company, and no significant employment changes are anticipated in any of Automation Group's locations.
"With the addition of Automation Group, E Tech Group expands its market-leading positions in automation of Life Sciences, Data Centers, Consumer Packaged Goods, and Food and Beverage industries," said E Tech Group CEO Matt Wise. "The addition also brings significant cybersecurity expertise, accelerating our rapid growth in this segment and enabling us to better serve our clients with IT/OT vulnerability assessments and remediation."
Said Stegmann and Ruano in a joint statement: "We have tremendous respect for the E Tech Group platform and are confident this will be a seamless transition that will quickly pay dividends for customers of both companies. We're also excited about the career opportunities members of the Automation Group team will enjoy as part of a larger, fast-growing organization like E Tech Group."
"This is an exciting expansion of our E Tech Group investment platform that enhances our West Coast reach, adds valuable technological expertise and greatly improves our capabilities and capacity in important verticals," said Ken Walker, a partner at Falfurrias who also serves as Executive Chairman of E Tech Group's board of directors. "We're grateful to Brad for his vision and leadership, and we are thrilled to welcome Randy and the rest of the Automation Group team to the E Tech Group family."
About E Tech Group
E Tech Group is one of the largest automation engineering and system integration firms in North America. With locations across North America and more than 450 engineers, the company provides automation, control and information solutions to the Life Sciences, Data Centers, Consumer Products and Food & Beverage and Industrial industries. In addition to its organic growth, E Tech Group has recently grown through the successful acquisition and integration of Glenmount Global Solutions, Superior Controls and E-Volve Systems. For more information, visit etechgroup.com.
About Automation Group
Automation Group is a leading provider of automation services to a wide range of industries, including Life Sciences, Food & Beverage, Data Centers, Electric Vehicles and Distribution & Logistics. Based in Modesto, California, the company combines its expertise with leading automation products and its decades of process experience to successfully implement a variety of complex automation solutions across North America. For information, visit www.automationgroup.com.
About Falfurrias Capital Partners
Falfurrias Capital Partners is a Charlotte-based private equity investment firm founded in 2006 by Hugh McColl Jr., former chairman and CEO of Bank of America; Marc Oken, former CFO of Bank of America; and Managing Partner Ed McMahan. The firm has raised more than $1.9 billion across five funds and invests in growing, middle-market businesses in sectors where the firm's operational resources, relationships and sector expertise can be employed to complement portfolio company executive teams in support of growth objectives. Falfurrias Capital Partners employs a proprietary, research-based process called "Industry First'' to identify markets with durable growth trends, construct a thesis based on research findings, and partner with management teams to create strategic value. For more information, visit www.falfurriascapital.com.
SOURCE Falfurrias Capital Partners
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