You might say that AMETEK is powerfully instrumental. Its Electronic Instruments Group (EIG) makes monitoring, calibration, and display devices for the aerospace, heavy equipment, power generation, and other industrial markets. Its Electromechanical Group makes air-moving electric motors for vacuum cleaners and other floor care equipment, blowers and heat exchangers, connectors for moisture-proof applications, and specialty metals for the aerospace, mass transit, medical, and office products markets. AMETEK has some 100 manufacturing facilities throughout the world; sales are split roughly 50/50 between international and US customers.
Europe is the company's largest market outside the US. Strong design, engineering, and production operations, as well as distribution channels, have made AMETEK a leader there, particularly in motors for European floor care equipment.
In order to keep costs down and gain closer proximity to developing markets, the company has moved certain production operations to lower-cost regions, such as Brazil, China, the Czech Republic, and Mexico.
Thanks to both internal growth and acquisitions, AMETEK's sales rose more than 20% and net income went up more than 35% in 2011 compared with 2010. The company saw double-digit sales increases in both of its segments, as well as international sales that were up by nearly a quarter. It also points to strategic initiatives under its four growth strategies -- operational excellence, new product development, global and market expansion, and strategic acquisitions and alliances -- as contributing to the record financial results.
One key component of AMETEK's strategy for growth is the development of new products. The company's Electronic Instruments Group focuses its product development efforts on several specialized markets, including process measurement, aerospace, and dashboard instruments. Its Electromechanical Group concentrates on targeting the aerospace and defense, medical, business machine, and other markets with specialized products.
Both domestically and internationally, AMETEK is a highly acquisitive company that seeks opportunities to buy companies that add to its global portfolio of both products and services.
Mergers and Acquisitions
In late 2012 and early 2013 AMETEK acquired four privately owned companies for undisclosed amounts that expand its technological capabilities, as well as its aerospace maintenance, repair, and overhaul (MRO) expertise. It bought FAA-certified Aero Components International and Avtech Avionics Instruments, both based in Miami, as well as Sunpower and Crystal Engineering.
Also extending its product reach, earlier in 2012 AMETEK acquired industrial O'Brien Corporation and Micro-Poise Measurement Systems for $175 million and $170 million, respectively. O'Brien makes tubing, enclosures, heaters, and instruments used in such industries as oil, gas, pharmaceuticals, and semiconductor fabrication, and Micro-Poise serves the tire industry with test and measurement equipment.
Abroad, AMETEK paid private equity investor Triton about €250 million ($320 million) to buy Germany-based Dunkermotoren. The maker of motion control gear boxes for a range of industrial automation purposes expands AMETEK's rotary and linear motion control products line and its customer base, while adding manufacturing capacity in both Europe and China.
The company continued its shopping spree in 2011, buying EM Test (Switzerland) GmbH (calibration, display, monitoring, and test instruments) and Technical Manufacturing Corporation (vibration isolation systems and optical test benches), as well as Reichert Technologies, a maker of analytical and diagnostic equipment used in the eye care market that complimented its earlier Avicenna acquisition. The Avicenna purchase helped to expand AMETEK's medical device components product line.
Prior to that, AMETEK purchased Coining Holding, a maker of custom-shaped preforms, microstampings, and wire, for $148 million in cash. The acquisition bolstered AMETEK's portfolio of electronic engineered products used in microelectronics packaging, thermal protection, and electronic circuitry connection applications. – less