Cavan-based precision industrial tools maker ATA has been acquired by Massachusetts-based peer Harvey Performance Company for an undisclosed sum.
The deal involves the Irish management team, led by chief executive Peter Cosgrove, and the Harvey senior leadership investing in the merged business. It is understood that Mr Cosgrove and other management shareholders in ATA are also taking money off the table as part of the transaction. Mr Cosgrove owned 26 per cent of ATA.
Equity funding for the transaction was provided by Berkshire Partners, the US private equity group that owns Harvey.
ATA achieved Ebidtda (earnings before interest, tax, depreciation and amortisation) of €22 million on revenues of €105 million last year, with the company targeting revenues for this year of €110 million and Ebitda of €23.5 million. The combined business will have annual revenues of about $330 million (€304 million).
ATA has businesses in Ireland, Germany, the Netherlands, Switzerland, Britain and the US, employing 475 staff, with about 150 workers based in Killygarry, Co Cavan.
The transaction has allowed other ATA shareholders to cash out their investments, notably the Ireland Strategic Investment Fund (Isif), and Development Capital Fund, who each owned about 18 per cent of the Irish business. Isif’s Brian O’Connor said the deal represented a “strong investment return” for the State fund.
Commenting to The Irish Times on the transaction, Mr Cosgrove said: “We are very pleased with the deal. We believe in the future potential of this business and think there’s a lot more opportunity and growth to come.”
Mr Cosgrove will run the businesses in Europe and other regions and join Harvey’s board, while Harvey’s Brian Lavelle will be chief executive of the merged entity and run the business in the US. The deal will allow Harvey’s products to be distributed by ATA through its businesses in Europe and elsewhere.
Mr Lavelle said he was “excited” by the acquisition of ATA, which he had an “established reputation” for providing quality customer service and “high quality products”.
Ted Rainaud, managing director of Berkshire Partners, said the acquisition represented a “significant expansion of Harvey’s product offering and geographic presence. We look forward to supporting the continued growth and expansion of the combined business.”
Founded in 1963 as a family business, ATA is a manufacturer and supplier of precision cutting tools for industrial groups globally, serving more than 7,500 customers in 90 countries. It was acquired in 2008 by Mr Cosgrove and other investors when the business had revenues of just €17 million.
Its leading brands include Karnasch, SGSPRO, ATA Tools, Van Hoorn Carbide, and ITC and Garryson.
In February, 2023 ATA was chosen as Local Enterprise of the Year at the fifth annual Irish Times Business Awards, which is run in association with Bank of Ireland.