Ares Private Equity Fund Injects Substantial Capital into AIR, Fueling Its Growth Strategy in Industrial Automation

A New Force Emerges in the Automation Industry: Automated Industrial Robotics Inc. (AIR)

In a move that underscores the burgeoning demand for manufacturing automation solutions, Ares Management Corporation proudly announces the launch of Automated Industrial Robotics Inc. (AIR), a newly formed industrial automation company poised to capitalize on the global surge in automation. With substantial equity capital invested by an Ares Private Equity fund, AIR is set to revolutionize the way industries approach automation, delivering greater efficiency, cost-effectiveness, and innovation to businesses worldwide.

Mission and Vision: Driving Automation Excellence

Established with a clear mission, AIR aims to acquire and foster the growth of leading industrial automation companies catering to diverse end markets. The company’s strategic focus lies in acquiring differentiated industrial automation companies with strong operational histories and experienced management teams. Guided by a culture that prioritizes safety, transparency, and exceptional customer experience, AIR seeks to leverage complementary teams and technologies to deliver innovative and cost-effective solutions that address the intricate needs of global businesses.

Leadership Team and Initial Investments: A Foundation for Success

The formation of AIR is spearheaded by Brian Klos and Darragh de Stonndún, two industry veterans with decades of combined experience. Klos, a former Partner in the Ares Private Equity Group, brings extensive M&A, organizational development, and strategic advisory expertise. De Stonndún, an industrial automation industry veteran, boasts over 20 years of leadership and operational experience, having held key positions at ATS Automation and co-founded BBS Automation.

To mark its launch, AIR has already executed two strategic acquisitions: Totally Automated Systems (TA Systems) and Modular Automation (Modular). This move establishes a solid foundation for the company’s growth trajectory.

TA Systems and Modular Automation: Cornerstones of AIR’s Automation Prowess

Based in Detroit, Michigan, TA Systems has a rich 45-year history of designing and manufacturing fully integrated and standalone assembly machines for automotive, home appliances, and other sectors. The company’s vertical manufacturing processes have earned a reputation for delivering exceptional speed, quality, value, and service to its customers.

On the other hand, Modular Automation, headquartered in Shannon, Ireland, has been a leading automation solutions provider in the medical technology industry for nearly 40 years. The company’s expertise lies in integrating cutting-edge technologies, such as collaborative robots, autonomous mobile robots, and Industry 4.0 applications, to deliver high-quality, reliable automation solutions to its clients.

Executive Leadership’s Perspective: A Shared Vision for Growth

In a joint statement, Klos and de Stonndún expressed their enthusiasm for collaborating with Ares in bringing AIR to global markets. They emphasized the significant growth opportunities in the industrial automation sector and expressed confidence in AIR’s ability to establish a competitive global platform through strategic acquisitions and organic growth. They highlighted the strong cultural and technological alignment between TA Systems and Modular and expressed their commitment to enhancing efficiencies, driving technological innovation, and delivering industry-leading automation solutions to customers worldwide.

Support from Ares Private Equity Group: A Catalyst for Success

Matt Cwiertnia, Co-Head of the Ares Private Equity Group, echoed the belief that AIR has a unique opportunity to become a major player in the fragmented industrial automation industry. He praised the combined experience of Klos and de Stonndún in acquiring, integrating, and operating businesses and expressed excitement about working with them to position AIR for long-term growth.

TA Systems and Modular Automation: Embracing the AIR Advantage

Ted Brown, CEO of TA Systems, expressed his company’s excitement about joining AIR, viewing it as a pivotal step in their growth and diversification journey. He reiterated their commitment to delivering exceptional value and service to customers and contributing to the continuous evolution of automation technologies.

Vivian Farrell, CEO of Modular, echoed the sentiment, emphasizing the significance of this milestone for Modular. He expressed confidence in expanding the reach of their innovative solutions and advanced automation capabilities to serve their global medical technology clients. Farrell also highlighted the shared values and commitment to serving customers worldwide.

Conclusion: A New Era of Automation Innovation

The launch of AIR, backed by substantial equity capital from Ares Private Equity, marks a significant development in the industrial automation landscape. With a focus on acquiring leading automation companies, a customer-centric approach, and a commitment to innovation, AIR is well-positioned to become a major player in the global automation market. The initial investments in TA Systems and Modular Automation provide a solid foundation for the company’s growth strategy, combining deep industry expertise and a strong cultural alignment. As AIR continues to expand its portfolio and drive technological advancements, it is poised to revolutionize the way industries approach automation, delivering greater efficiency, cost-effectiveness, and innovation to businesses worldwide.