CMA acquired controlling interest in ABB Foundry Systems in 2005, providing a solution for an $18 billion annual revenue public company seeking to divest a non-strategic business unit. CMA found the business attractive for investment due to:
- Characteristics fitting CMA’s target criteria: capital goods manufacturer with an aftermarket parts and service component, proprietary electrical engineering technology, impressive customer base and longstanding relationships, #1 or #2 position in key markets
- CMA was uniquely qualified to establish ABP as an autonomous company in five countries (Germany, Sweden, Brazil, Thailand and the USA), replacing necessary corporate support services while enabling senior management to focus on running the business with a liberating sense of entrepreneurship
- Strategic alignment with CMA’s Pillar investment was substantial. Combined, the ABP/Pillar induction businesses reached all key international markets
- Committed, industry-experienced personnel passionate about maintaining the ABP heritage of bringing advanced technology and superior service to a global marketplace
Renamed ABP Induction in 2005, the former ABB Foundry Systems was for decades the world’s leading manufacturer of high-throughput induction melting, pouring and heating equipment for the most technology-savvy foundries. The business combined three industry pioneers: Asea, which built the first channel induction furnace in 1903, Brown Boveri (BBC), which in 1929 established its furnace business in Germany, and Pillar, which introduced the first transistorized induction power supply. Under CMA ownership, ABP continued providing a competitive edge to its customers around the globe with highly-reliable, state-of-the-art technology, growing to operate in 11 countries serving all major metal-casting markets.
2006 Add-On Investment: – To better serve South American markets, ABP Induction acquired the Engefor Eletronica Pillar-related aftermarket parts and service business, based in Sao Paulo, Brazil. Engefor had enjoyed a well-earned reputation for superior service and quality manufacturing of Pillar melting systems. The Engefor transaction contributed engineering, sales and technical service talent while substantially increasing the installed base of equipment requiring periodic service.
2007 Add-On Investment: – ABP Induction Systems Pvt Ltd was formed in India to service this robust melting market with aftermarket services, systems sales and engineering support. Manufacturing operations began with a greenfield facility constructed on the outskirts of Vadodara in 2008.
2008 Pillar Merger: – CMA formally combined their two induction company investments after successfully establishing ABP as an autonomous independent company in all growth markets around the world.
2011 Divestiture: – Effective January 1, ABP sold its U.S. Heating Division assets consisting of the two plant locations in Brookfield, WI and Sterling Heights, MI and the intangible assets associated with the Pillar brand products. The ABP US Melting Division and all ABP international operations remain unaffected by the divestiture, a positive strategic transaction for both ABP investors and the buyer, a subsidiary of Park-Ohio (NASDAQ: PKOH).
Exited Investment, 2019: — Effective August 31st, ABP Induction was sold to Mitsubishi Heavy Industries (MHI) and Primetals Technologies, a world leader in providing engineering, plant construction, systems and services to the metals industry. MHI, headquartered in Tokyo, is one of the world’s leading industrial firms with 80,000 employees and annual consolidated revenues of $38 billion USD. This transaction was highly strategic, as ABP provides MHI/Primetals crucial elements of Primetals’ endless strip production system, their flagship offering, in addition to ABP’s respected induction engineering know-how and digitalization platform. ABP will benefit from access to substantial world-wide resources to accelerate revenue growth and develop new technologies.