Burlington Automation Corp.
an investment completed by
Lincoln Electric Corp.
Corporate Finance Associates
Situation: Burlington Automation Corp. (BAC), located in Hamilton, ON, manufactures a single machine, the PythonX. This machine is the market leader in automated cutting of structural steel and tubes. While the company has sold machines on every continent, it needed 3 things – a global distribution network, a global in-field support network and a marquee brand to take the business to the next level. The absolute best partner for the company was clearly Lincoln Electric Holdings (NASDQ: LECO). With $3 billion in revenue, Lincoln is the world leader in welding equipment and related automation technology.
Solution: CFA Toronto West was hired by BAC in May 2013 to assist in negotiating a major investment from Lincoln. BAC’s 50% increase in sales and profits in the previous 12 months complicated negotiations as it was unknown if this was a maintainable trend or just a blip. After several months of negotiations, an LOI was signed late-September 2013. The transaction was completed on November 15, 2013, when Lincoln executed the agreements to make a significant investment in Burlington Automation Corp.