A manufacturing holding company in West Michigan acquired an out-of-state designer and builder of automation, assembly and test systems for the automotive industry.
Greenville-based FabX Industries on Oct. 31 closed on the acquisition of Fort Wayne, Indiana-based Guide Engineering, according to Hudsonville-based NuVescor Group, the mergers and acquisitions firm that advised on the transaction.
Terms of the deal were not disclosed.
Guide Engineering will continue to operate under its current name. Gopi Ganta, president and CEO of FabX, assumed the role of CEO at Guide Engineering.
Former Guide co-owner Scott Taylor will continue in the role of president, and his former partners, Andy and Lisa Zundel, will retire from the business.
All staff members at Guide Engineering will be retained with no changes in the company’s core business model other than pursuing opportunities to diversify in the automation market. To that end, design and control engineering positions will be added.
Ganta said FabX was interested in acquiring Guide Engineering because of synergies between the companies, the experience and skills of Guide employees and the overall trend toward increased demand for automation among U.S. manufacturers.
He said he and the management team at FabX will bring strategic and business development experience to help diversify and grow the company.
“I’m really excited to be working with Guide Engineering,” Ganta said. “With my engineering background, I can provide strategic direction for Guide to pursue opportunities outside of the automotive field.”
He said FabX can supply machine components to Guide, and FabX also can develop automated and robotic systems to manufacture certain marine industry components.
Taylor said the partnership will allow for many synergies.
In a memo to customers and suppliers, he said: “Please take note that we will operate on business as normal with no interruptions to each of you. Our objective is to continue promoting the same expertise, competitiveness, quality and support as you have come to expect. We look forward to the years to come as we continue our relationship and partnerships.”
Established in 2017, FabX Industries is an ISO 9001-certified manufacturing holding company that provides value-added machining and fabrication services for the fenestration, automotive, marine, furniture and recreational vehicle industries.
In addition to Guide Engineering, its portfolio companies include Aquest Machining and LaserTec Sheet Metal Fab, of Greenville, and Elite Precision Machining, of Kalamazoo.
Founded in 1960, Guide Engineering was initially a design-only company and expanded in the 1970s to produce single-use special machines. From 1980-2000, the company expanded its focus again to include small assembly cells. Since 2000, the company has continued to grow as a high-end assembly and automation systems integrator.
It currently produces automation, assembly and test systems, including robotics, primarily for the automotive market.
Established in 2007, NuVescor Group is an M&A firm that partners with other service providers to facilitate business transactions.
NuVescor works within many different industries with a particular focus on the manufacturing sector.