May 17, 2000
JimPinto.com - Connections for Growth & Success
Here is the second eNewsletter to which you have subscribed
recently. I hope you will enjoy it, and give me some feedback to help
make it better.
Fairey acquires Spectris
(Thank you, Dave Ness, Hardy Instruments, for alerting me on this!)
Fairey Group PLC is a UK-based mini-conglomerate that has been
buying US and other businesses regularly - mostly small companies
like Ircon, RedLion, Luxtron, NDS, etc. Process Instrumentation is
about two-thirds of the group. Sales have been flat at about $425m,
which of course affects their stock price.
Now, in a bold move, Fairey is acquiring Spectris AG - at about $ 400m
sales this is big for Fairey. The acquisition price is about $200m
(0.5 times sales, which is low) and hopefully "accretive" - at a valuation that helps Fairey, which needed needed a big acquisition to show some growth. Spectris is the biggest one they've made yet and we'll need to see how they digest it.
Spectris manufactures instruments, systems and controls, with HQ in
Langen, Germany. Spectris itself had previously acquired B&K (test &
measurement), HBM (load-cells) and BTG (paper & pulp sensors) - these
will probably be split off and run separately, which is the Fairey MO.
Fairey Press Release on Spectris
Danaher Acquisition - what next ?
Following news of the two Danaher acquisitions,
a JimPinto.com subscriber asked :
"With all the recent acquisitions made by the Danaher Corporation,
how do you see them handling the overlap of products and technology,
especially Kollmorgen, Pac Sci, API, Warner, Atlas Copco?
Do you believe there will be a considerable amount of consolidation?
As I can see, the recent acquisitions of Kollmorgen and Warner appears
to be a way for Danaher to gain market share and expand their
distribution network, more than gain new technology."
Here is my response :
You're right on - these acquisitions are "to gain market share and expand distribution" - not for new technology. Danaher is a Manufacturing-orientated organization, and they'll provide manufacturing quality and cost improvements. In my opinion, the overlaps will be measured, and simply consolidated or divested.
In a relatively flat marketplace, the name of the game for the big names, with their stock traded on a major exchange, is to grow through acquisition, without diluting profit percentage.
Check out the Danaher press release
Go to the article The Changing Face of Automation
Disintermediation I & II
ISA InTech published my Disintermediation article on the back page
this month (May 2000) : When do you make the change?
Check out the InTech article
I've had a lottt of response.
The subject of Disintermediation came up at ISA/99 in Philadelphia,
where a horde of Reps and Distributors stood frozen,
"like deer in the headlights". There is very little material on Disintermediation which helps, specifically in the industrial automation biz. Take a look at my two articles :
For sales channels :
: For end-users
Here is what Tom O'Leary, Central California Instruments, said :
"The true entrepreneur, will, with a carefully planned course of action, not only survive, but very likely excel in various niches or mainstream venues. The challenge is certainly there, and this old goat is definitely pumped up and primed for an exciting voyage to "where no man has gone before".
Thank you for your positive and motivating response, Tom!
Automation List - 'Open' Systems Poll
Ken Crater, founder of the Automation List writes :
This poll was up on the Control.com site for a number of days and
accumulated an interesting response -- it seems that there's a pretty wide variation in the definition of "open" as it relates to controls. The question posed was simple:
||whatever Marketing wants it to mean.|
||the protocol is published and free to replicate.|
||the hardware is ISA bus, CompactPCI, PC/104, etc.|
||the software is open source.|
||all of the above.|
Ken's Note: "all of the above" was sort of a perverse choice that a number of people seem to think reflects the current reality. It'd be nice if "open" could begin to mean something again.
There will be a new poll up in a couple of days, if you want to get your votes in go to :
The Control.com website
Contact Ken Crater at :
To subscribe to the Automation List :
send an email with subject 'subscribe' to :
eNEWS - HOW OFTEN?
Thank you for your response on my question in the last eNews :
How often to publish this eNewsletter?
Tell you what - we'll start with : "as often as you have something".
- Most people said : As often as you have something interesting.
- Many said : Once a week, or every two weeks.
- Some said : Once a month.
Your feedback will make a difference.
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