Dunedin-based niche engineering company Scott Technology Ltd (NZX: SCT) has purchased a multi-million dollar American company Transbotics Corporation which makes automated guided vehicles.
The sum for the purchase was not disclosed.
Transbotics is in the top 10 manufacturers of automated guided vehicles (AGVs) in the US, having been established 36 years ago, and employs 30 staff; who will stay with Scott Technology.
Its customer base includes Bridgestone, the world's largest tyre manufacturer, Alcoa, the world's sixth largest supplier of aluminium and construction supplier US Gypsum.
Scott chairman Stuart McLauchlan expected “great growth” opportunities from the Transbotics acquisition, whose products Scott had been using for the past two years.
The unmanned AGVs are used in warehousing and distribution settings, accessing, storing and transporting stock or pallets.
In February, Scott announced it had bought a Belgian warehouse automation company for $NZ20.3 M cash, which it plans to expand across the world.
McLauchlan said yesterday the Alvey purchase was the first step toward the goal of having complete vehicle production from “raw material receipt to final distribution” of the finished vehicles, and also a cart model.
Transbotics is based in Charlotte, North Carolina.
“We will now be able to meet this (vehicle) need in-house, while removing the risk and cost associated with outsourcing,” he said.
It would also provide a strong platform to launch Scott's existing materials handling and logistics products into the North American market, he said.
The deal is scheduled to be concluded by June 1, with the acquisition earnings accretive; meaning it will immediately contribute positively to Scott's revenue line.
*Simon Hartley is senior business reporter and assistant chief reporter for the Otago Daily Times.