IATGlobal Manufacturing

Bringing Advanced Manufacturing and Automation Solutions to the Middle Market


Company: IATGlobal Manufacturing Ltd.Industry: Industrial AutomationHeadquarters: Windsor, ONFounder: Mark MizonAcquired: October 2015CEO: Mark MizonEmployees: 50+

Message from Executive Management


“ CNC machining services that aid in the industrial automation industry, generating $2.5 million in high margin annual sales.”

The Opportunity

Innovative Applied Technologies (IAT) was a small, family-owned machine shop that operated from an older, 15,000 SF manufacturing facility in Windsor, ON and provided precision CNC machining services to the industrial automation industry, generating $2.5 million in high margin annual sales.

IAT was owned by two equal partners, Mark Mizon (current CEO) and his business partner (since exited the business) who were at different life and career stages. Mark was 10 years the junior of his partner and wanted to grow the business he founded in 1996; conversely, Mark’s business partner was looking for a liquidity event and to transition to retirement.

Mark was an entrepreneur who held subject matter expertise and significant experience in B2B sales, but a limited background in operations, human resource management, finance and corporate governance; these areas having historically been managed by his business partner.

After extensive due diligence, a transaction was consummated and BlueArck became the majority shareholder of Innovative Applied Technologies in October 2015.

IATGlobal Manufacturing

Building an Infrastructure to lead the Industry 4.0 Revolution


“A custom ERP system, 68,000 SF of new floorspace, and a follow-on acquisition were completed in the first 3 years.”

The Process

With no ERP system or IT platform in place, data management and workflow process became immediate investment priorities. The team needed a way to better collaborate and manage a complex production process. As such, SAP was selected as the ERP partner who could develop a customized solution to facilitate scaling of the business.

Operations were housed in a small, older facility that did not suit the needs of IAT or its clients and inhibited the company from attracting new customers. Development of a new, 28,000 SF greenfield manufacturing facility began and was completed in November 2016.

Further investment was made into CNC machinery and vital quality control equipment to support existing operations.

Human resources were reconfigured to create a structure that complemented Mark’s strengths and filled gaps where there were perceived weaknesses, with BlueArck providing support in the background and from a more strategic level.

Acquisition & integrationof NH global design

NH Global Design (NHG) was introduced to BlueArck by a Big 4 accounting firm as a potential fit to expand IAT’s capabilities, giving it access to a new, high technology discipline. Each company had a unique client base that could be cross-marketed and a product offering that could be complimentary if structured and managed correctly.

After going through extensive due diligence to ensure a financial and, more importantly, cultural fit (with an alignment of core values), IAT acquired NHG in July 2016.

Through November 2017, when IAT and NHG were amalgamated to form IATGlobal Manufacturing Ltd., an extensive integration process ensued to drive a new unified business process as well as procedures to drive operational improvements.

To better align with its new, full-service complement, IATGlobal’s mission was amended from having a product-focus to more of a solutions-based approach. This allowed for a broader spectrum of opportunities based on IATG’s expanded skillset in machining and, now, end-to-end, design and build industrial automation.

The focus on customer service was a critical element as was human resource management to bring focus to the team and ensure the company was properly aligned.

Implementation of SAP to align with role definitions was a key part of this process to ensure the team was given the tools to succeed and ensure customers were receiving great solutions and value.

Similar to IAT, NHG was operating from an older facility and required investment in a new building. BlueArck then acquired land in Chatham, ON and developed a 38,000 SF facility that was better suited to drive growth within the industrial automation industry. The team opened the doors of its new home in December 2018.

50

Team Members and Growing

65

Thousand SF of operating capacity

35.6

Percent CAGR

23.3

Percent expected IRR (4 Year)

“Revenue growth since acquisition of IAT has reached 35.6% (CAGR)”

Results

With a new complement of products and services, operating from new facilities, a new ERP system and set of defined processes and procedures, IATGlobal has gone through a full infrastructure build and is ready to hit the market.

Traction with existing and new clients is better than it has ever been and the company is poised for rapid growth over the next 5+ years, ready to expand into new markets that were previously inaccessible.

IATGlobal now has a fully functional team that works together to collaborate and generate solutions that are tailored to the needs of its customers.

Revenue growth since acquisition of IAT has reached 35.6% (CAGR) and is expected to continue to grow as the team capitalizes on its new-formed infrastructure.