LINCOLN ELECTRIC HOLDINGS INC acquires Fori Automation, Inc.

LINCOLN ELECTRIC HOLDINGS INC acquired Fori Automation, Inc. for $427 million cash purchase price (subject to working-capital adjustment); funded a $400 million senior secured term loan to partially fund the deal, a transaction completed in December 2022, structured as all cash.

Fori Automation, Inc. operates in Americas Welding (~75%) and International Welding, is based in Shelby Township, Michigan, USA, with six international facilities across Europe, Latin America and Asia, had revenue of about approximately $225 million expected annual automation sales contribution. Fori Automation, founded in 1984 and headquartered in Shelby Township, Michigan, is a leading designer and manufacturer of complex, multi-armed automated welding systems, automated assembly systems, automated material handling solutions, large-scale industrial automated guided vehicles (AGVs) and end-of-line testing systems, primarily serving automotive and aerospace OEMs, with operations in six international facilities across Europe, Latin America and Asia.

The acquisition accelerates Lincoln's Higher Standard 2025 goal of $1 billion in automation sales by 2025, extends its presence in the automotive sector (including EV platforms), and expands its automation footprint in South Korea, India, Europe, China and Latin America. It was expected to add approximately $225 million in annual automation sales at comparable EBIT margins.

Adds large-scale assembly, material handling and end-of-line testing to extend Lincoln's automotive (including EV) and aerospace automation presence and international reach. Expected to be accretive to earnings at approximately $0.12 to $0.15 per diluted share annually in 2023, excluding transaction costs. Approximately 75% of revenue in Americas Welding, balance in International Welding