American company Acquires ATA
Cavan based tool maker, ATA, has been acquired by America’s Harvey Performance Company but it's very much business as usual.
The acquisition closed on June 28, but ATA could not disclose financial details of the deal.
An ATA spokesperson confirmed to The Anglo-Celt that there will be “no impact” on employment in Cavan or in its other global locations in the United Kingdom, United States, Germany, The Netherlands, and Switzerland as a result of the takeover.
It employs around 474 staff, including about 150 workers at its Killygarry plant in County Cavan.
“The intent for employees, and customers, is that it's business as usual,” the spokesperson confirmed.
“Our immediate focus is on realising the synergies between the two companies to grow the combined organisation and deliver our usual high quality products and services, which we would expect to be positive for jobs in Cavan."
Founded in 1963, ATA is a manufacturer and supplier of precision cutting tools for industrial groups globally, serving more than 7,500 customers in 90 countries.
The Killygarry company hopes to expand on their product offering as a result of the acquisition, which currently stands at over 25,000 precision industrial cutting tools.
The spokesperson revealed the ATA business is on track to turnover €110M this year and have EBITDA (earnings before interest, taxes, depreciation, and amortisation) of €23.5M.
Headquartered in Rowley Massachusetts, Harvey Performance is a leading provider of specialised cutting tools for precision machining applications. Both companies are established leaders in their respective geographies, and the acquisition is expected to create a powerful combination across North America and Europe.
ATA CEO Peter Cosgrove said ATA is “delighted” to join Harvey Performance Company.
“We’re focused on expanding Harvey Performance's brands across Europe and beyond, while introducing ATA's leading brands to Harvey Performance’s customers,” he said.
"I am honoured to join the Harvey Performance board,” he continued.
“Our management team is looking forward to collaborating with our new colleagues, and our primary focus remains on driving business growth globally.”
The acquisition will bring an international platform on which Harvey Performance can continue to grow and expand. The ATA management team will continue to drive business for the company outside of the US.
Chief Executive Officer of Harvey Performance Company Brian Lavelle was “immediately impressed” by ATA and its brands including Karnasch, SGSPRO, ATA Tools, Van Hoorn Carbide, Industrial Tooling Corporation (“ITC”), and Garryson.
“Like all Harvey Performance brands, ATA brands have an established reputation for providing outstanding customer service and a dedication to manufacturing the industry’s highest quality products,” he said.
“We couldn’t be more excited about welcoming ATA to the Harvey Performance family.
“This acquisition represents a milestone in the proud history of the company and further establishes our integrated, international business comprised of distinctive brands and product lines.”
ATA’s investment partners Development Capital and the Ireland Strategic Investment Fund, who invested in 2017 and 2019 respectively, will exit as a result of the transaction.
Co-founder and Director of Development Capital Andrew Bourg said they are “delighted to see ATA attract a company the calibre of Harvey Performance, reflecting the success of the vision for the sector by the ATA management team.”
While Brian O’Connor of Ireland Strategic Investment Fund said “today’s announcement reflects a strong performance by the ATA team, a positive outcome for the company and a strong investment return for ISIF”.
Harvey Performance Company, senior vice president of sales, Jerry Gleisner, said the acquisition provides “great potential” for Harvey Performance.
Piper Sandler acted as exclusive financial advisor to Harvey Performance Company and Berkshire Partners on the acquisition of ATA. Houlihan Lokey acted as exclusive financial advisor to ATA.