KUKA Systems Group, one of the world’s largest systems integrators, has acquired the plant engineering business of privately owned Utica Companies of Shelby Township, MI, a welding equipment specialist and supplier to the automobile industry. The purchase price for Utica Enterprises Inc. was not disclosed but is in the low double-digit million euro range.
“This acquisition follows our strategy of being No. 1 or 2 in our respective markets. It not only adds new customers, but will [also] enable us to continue our profitable growth in North America and in Asia,” said Till Reuter, CEO of KUKA AG, the holding company that owns KUKA Systems Group.
KUKA Robotics’ global revenue topped $970 million in 2012. KUKA declined to list North America revenue or the expected growth from the acquisition of Utica Enterprises. The North American subsidiary of Germany-based KUKA AG now holds a nearly 40 percent market share of robotics systems in North America, up from 25 percent, the company said in an e-mailed document.
The acquisition gives KUKA access to new customers like General Motors Co. and Asian automakers, the company said.
The Utica acquisition primarily covers automobile assembly-related assets in southeastern Michigan. KUKA Systems will absorb Utica’s body structure business that builds car-body assembly lines and subsystems.
Utica’s products also include laser welding heads; net form and pierce systems for high accuracy in joining body sections; standard press-room automation for metal stamping; and hang-on technologies for installing doors, hoods, and other parts on assembly lines.
Utica’s roughly 300 employees will remain with the company as part of KUKA’s operations, which includes 1,400 employees. The combined company will be headed by KUKA Systems North American President and CEO Larry Drake.
Some of Utica’s management team were offered positions as advisors to KUKA. Utica owner and President Stefan Wanczyk is still with KUKA, but it is unclear what his role in the new company is or how long he will keep the position. Wanczyk is also the CEO of Hour Media LLC in Royal Oak.
KUKA now operates 12 facilities in Michigan in Macomb, Oakland, Saginaw, and Genesee counties. In North America, KUKA’s footprint expands to 1.1 million square feet.
“With this acquisition KUKA Systems will leverage its technologies,” Drake said in a Monday news release. “Moreover, our customers will benefit from an expanded manufacturing footprint, talent pool and knowledge base with greater economies of scale.”
