Middle-market private equity firms are finding opportunities in the transformation of manufacturers in Industry 4.0. Add New York-based Court Square Capital Partners to the list. Let’s take a look at their most recent add-on deal, and how it fits into industry trends.
Industry 4.0 refers to the next wave of manufacturing trends that relies on technologies, such as automation, data and machine learning. This is an area where PE investors are expecting to see proliferation.
Court Square-backed GoEngineer recently announced the acquisition of Computer Aided Technology. GoEngineer offers 3D design and additive manufacturing services. CATI is a product development company that specializes in 3D software and 3D printing hardware. This deal fits the mold of what is going on in the sector because of the reshoring of supply chains and mass customization on demand and digitization of product development. Court Square acquired GoEngineer in 2021, and CATI marks GoEngineer’s eleventh add-on acquisition since 2013.
“The acquisition of CATI represents the continued execution of our goal to make GoEngineer the premier provider of 3D design and additive manufacturing solutions in the U.S,” says Court Square managing partner Jeff Vogel. Court Square has $7.6 billion of assets under management, and has made over 245 platform investments since 1979.
Instead of always competing for the same deals, sometimes PE firms look to broader emerging trends in sectors that are still fragmented. On that note, expect more Industry 4.0 deals to come.