Nashville-based private equity firm LFM Capital has launched American Automation Group (AAG) as a new platform investment, acquiring Southern Tooling, Inc. and Tuttle, Inc. as its first two companies.
Southern Tooling specializes in designing, building, and integrating automated equipment, robotic controls, and programmable logic controllers (PLCs) used in the medical, automotive, and industrial sectors. The company’s capabilities include test equipment, conveyor systems, assembly machines, metal forming/cutting, presses, and material handling. Southern Tooling was founded in 2007 by President Jeremy Johnson and is headquartered in Lexington, Tennessee, 110 miles northeast of Memphis.
“Over the past 15+ years, we have remained committed to transparency, outstanding designs, and affordable solutions,” said Mr. Johnson. “We are thrilled to partner with the LFM and Tuttle teams to expand the breadth and depth of our solutions while continuing to serve our loyal customers.”
Tuttle provides custom-engineered automation systems for the pharmaceutical, food and beverage, pet food, and general manufacturing sectors. The company’s capabilities include fabrication, welding, and installation of conveyors, automation and material handling equipment, piping, catwalks, platforms, stairs, and support structures.
More than 70% of Tuttle’s annual revenue comes from repeat business, and the company has installed equipment across the United States, Puerto Rico, and Mexico, including a custom piece of equipment used by researchers in Antarctica. Founded in 1974 by Gary Tuttle, the company is now led by his son, CEO Galen Tuttle, and operates from a 50,000-square-foot facility in Friend, Nebraska, 100 miles southwest of Omaha.
“To say I am proud of Tuttle’s organic growth over the past fifty years is an understatement,” said Galen Tuttle. “Tuttle’s dedication to high-quality products and our customers’ evolving needs has led to our long-standing track record of success with both large and small turn-key projects. LFM’s expertise will be invaluable in taking Tuttle to the next level as part of a larger-scale automation platform.”
The LFM transaction team included managing directors Dan Shockley, Chris Lin, Jessica Ginsberg, and associate Ben McNabb.
“We are thrilled to announce the combination of Southern Tooling and Tuttle to establish American Automation Group,” said Mr. Shockley. “Together, these complementary businesses will provide one-stop-shop solutions for manufacturing facilities in diverse end markets, both for existing and new customers. LFM has direct experience in the industrial automation space, which will serve as an actionable template for AAG to drive growth and diversification.”
The global industrial automation market is projected to grow at a compound annual growth rate (CAGR) of 9.8%, reaching $395 billion by 2029, driven by the demand for efficient manufacturing processes and technological advancements. Businesses like AAG could see rising demand for integrated automation systems.
“With a comprehensive start-to-finish offering, AAG will help customers increase production while controlling manufacturing costs,” added Mr. Lin. “We see many opportunities to expand AAG’s geographic reach and customer base and look forward to growing this platform, as we’ve done in the past.”
LFM invests in U.S.-based manufacturing and industrial services companies with at least $3 million in EBITDA and enterprise values between $15 million and $125 million. The firm was founded in May 2014 and is headquartered in Nashville.
LFM has been active in 2024, with recent acquisitions including DROP Sprockets, a British Columbia-based manufacturer of customizable sprockets, as an add-on to its Tennessee-based Weller Metalworks platform; and Technical Beverage Services, a Tennessee-based maker of parts for high-speed packaging machinery, as an add-on to SureKap, as an add-on to its Georgia-based packaging machinery platform.
© 2024 Private Equity Professional | September 5, 2024
