Balmoral Funds has acquired the engineer-to-order business of DWFritz Automation from publicly traded Sandvik AB.
DWFritz provides customized nano-automation systems, precision metrology and inspection equipment, and high-precision contract manufacturing and assembly services. Its customers are active in the consumer electronics, medical devices, e-mobility, automotive, energy storage, logistics, and transportation sectors.
Within nano-automation, DWFritz specializes in the development of custom machines and technologies that can manipulate and assemble tiny components with nanometer-level precision. Many of the company’s systems are used in the electronic and medical device sectors, where exact measurements and manufacturing precision are critical.
Not included in the sale to Balmoral is DWFritz’s ZeroTouch metrology platform which performs high-speed, non-contact inspections of complex parts. It uses advanced sensors and software to measure the physical characteristics of components—such as their shape, size, and surface features—typically in the range of microns (millionths of a meter).
DWFritz was founded in 1973 by David W. Fritz and is headquartered near Portland in Wilsonville, Oregon. Sandvik acquired DWFritz from the Fritz family in October 2021. In the year before Sandvik’s acquisition, DWFritz had annual revenues of $78 million.
Balmoral Funds partnered on the buy of DWFritz with members of DWF’s senior management team including CEO Michael Pacione.
“DWFritz’s custom nano-automation solutions are truly impressive, pushing the boundaries of innovation in high-precision manufacturing,” said Mr. Pacione. “By upgrading our technology, refining business processes, and advancing software development, we are positioning DWFritz for sustainable growth and operational efficiency. These efforts will also empower our talented employees to unlock their full technical potential, enabling them to drive innovation and deliver exceptional solutions at scale, ensuring we continue meeting the evolving needs of our customers.”
“Our partnership with the management team and retention and augmentation of all key technical talent at DWFritz is rooted in a shared vision of growth and innovation,” said Robin Nourmand, a managing director at Balmoral. “By providing DWFritz with the necessary resources, including capital and strategic support, we are confident in the company’s ability to achieve our mutual objectives and unlock the company’s full potential. We look forward to working closely with the team to drive significant advancements, while empowering DWFritz to build on its legacy as an industry leader.”
Los Angeles-headquartered Balmoral invests in corporate carve-outs, restructurings and other special situations. The firm targets equity investments of $10 million to $120 million in companies with $30 million to $500 million in revenue.
Sandvik (NASDAQ: SAND) is a multinational engineering company specializing in metal cutting, digital and additive manufacturing, mining and construction, stainless and special steel alloys, and industrial heating. The company, with annual revenues of more than $9 billion, was founded in Sweden in 1862 and is headquartered in Stockholm.
© 2024 Private Equity Professional | October 2, 2024
