Acquisition analysis: 4 system integrators merge

Glenmount Global Solutions (GGS), since January has acquired three automation system integrators: Crown ESA, Tegron, and FluidIQs. Together they expect to….

06/05/2008


Irvine, CAGlenmount Global Solutions (GGS) announced May 19 that it acquired Crown ESA , which it described as a “leading service firm providing Industrial Automation and process control systems for multiple, diverse industries.” GGS acquired two other system integrators, FluidIQs and Tegron in January.
With the latest transaction, Glenmount Global Solutions says it “expands [its]
That was up from a “combined 250 associates in 23 offices delivering thousands of projects for hundreds of customers,” the company said after the January acquisitions. Brands of each of the three originating companies will remain GGS says. Terms were not disclosed.
The Glenmount enterprise includes three “premier industrial IT service brands in North America: Crown, FluidIQs, and Tegron.” FluidIQs is the largest independent industrial IT service firm focused on the water and wastewater industry segment, and is leading FluidIQs National in transforming the water automation market; Tegron brings expertise in multiple sectors, with substantial emphasis in the oil and gas, food and beverage, and power and utilities markets, GGS says.
Commentary, analysis
System integrators continue to explore mergers, acquisitions, and other agreements to pool their talents, according to Dr. Vance VanDoren, Control Engineering consulting editor. VanDoren says the moves “demonstrate the growing trend for system integrators to join forces in one fashion or another. Tegron and FluidIQs are each CSIA-certified integrators and among the largest independent system integrators in the business.”
In October 2007, FluidIQs announced a federation with two other CSIA-certified integrators– Revere Control Systems and Instrument Control Systems, together forming “FluidIQs National,” without a formal merger… more of a “loose partnership arrangement,” VanDoren says.
And GGS may not be done yet, according to a statement from Michael Johnson, chief executive officer of Glenmount Global Solutions: “We seek to identify the leading, world-class professional services firms supplying industrial IT, process control and automation solutions in critical vertical markets and provide the catalyst for them to grow stronger, faster. As we continue to bring the best companies in our industry together, we are creating the critical mass necessary to meet our customers’ global requirements for the next decade.”
In 2002, Control Engineering reported that multiple

system integrators formed Automation Alliance Group

.
Strengths, history of the firms
Michael Johnson founded Glenmount Global Solutions in 2003, he says, with the vision to build the world leader in industrial IT services by leveraging expertise among the premier brands in key vertical markets, and bringing consistent quality and innovative solutions to our customers’ operations around the globe. Johnson co-founded Glenmount International in 1998 as
Tegron was founded in 1986 and has grown to sixteen locations in the US and Mexico with headquarters in Longview, TX. Tegron provides services primarily for the manufacturing and processing operations of industrial firms, with a significant emphasis in the oil and gas, foodmajor step toward building the go-to organization for innovative solutions in the Industrial Automation and Manufacturing Information sectors."
Founded in 1978, FluidIQs has grown to seven locations with headquarters in Napa, California.he size and strength this new alliance brings to FluidIQs. Tegron has built the systems, infrastructure, and experience for operating a multi-location enterprise that we need to continue our rapid pace of growth in a quality way."
Founded in 1992, Crown focuses on the metals and marine markets, with U.S. Steel, Mittal Steel, Nucor Steel and Jupiter Aluminum among its customers in the steel and aluminum industries. In the marine industry, the company delivers a broad spectrum of applications, including propulsion and navigation controls, to General Dynamics and the Military Sealift Command. Crown’s expertise in new and old technologies distinguishes the company from its competitors, GGS says.
Tom Adams, president of Crown, said, “We are excited to join the Glenmount team. Since being ranked among Inc . magazine’s 500 fastest growing companies in 2001, our substantial growth has continued and we have reached a size where ongoing expansion would be limited by our current business infrastructure. Glenmount has created the perfect organization to help us add top talent, enhance our service to customers, and take our operation to the next level. The FluidIQs and Tegron operating units of Glenmount have locations throughout North America, and increasing presence in Asia and Latin America. This will accelerate our ability to support our customers’ industrial facilities wherever they may be.”
– Edited by  Mark T. Hoske , editor in chief
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