ABP Induction Systems GmbH (ABP), located in Dortmund, Germany (formerly ABB Foundry Systems) has for decades been one of the world’s leading manufacturers of high-throughput induction melting, pouring and heating equipment. This leadership position results from the combination of three industry pioneers: Asea, which built the first channel induction furnace in 1903, Brown Boveri (BBC), which in 1929 established its furnace business in Dortmund, and Pillar having introduced the first transistorised induction power supply.
Today, ABP continues the heritage of the original businesses that began over 100 years ago, providing a competitive edge to its customers around the globe with highly reliable, state-of-the-art technology.
CM Acquisitions (CMA), a USA based private equity firm specialising in middle-market, sale of private companies, going private transactions, acquisitions, divestitures, and distressed situations, acquired controlling interest in ABP Foundry Systems in 2005, providing a solution for an $18 billion annual revenue public company seeking to divest a non-strategic business unit.
CMA found the business attractive for investment due to:
• Characteristics fitting CMA’s target criteria: capital goods manufacturer with an aftermarket parts and service component, proprietary electrical engineering technology, impressive customer base and longstanding relationships, #1 or #2 position in key markets
• CMA was uniquely qualified to establish ABP as an autonomous company in five countries (Germany, Sweden, Brazil, Thailand and the USA), replacing necessary corporate support services while enabling senior management to focus on running the business with a liberating sense of entrepreneurship
• Strategic alignment with CMA’s Pillar investment was substantial. Combined, the ABP/Pillar induction businesses reached all key international markets
• Committed, industry-experienced personnel passionate about maintaining the ABP heritage of bringing advanced technology and superior service to a global marketplace
Add-on investment criteria
• Market proven engineered products, well positioned in regional or niche markets and/or key accounts due to demonstrable competitive advantages
• Coil-repair services
• Strong management desired, not required
• Revenue exceeding $2 million, located in key casting and forging markets
• Aftermarket service operation with outstanding reputation
• Cross-selling equipment/service potential
2006 Add-On Investment
ABP Induction acquired the Pillar-related aftermarket parts and service business of Engefor Eletronica, based in Sao Paulo, Brazil to better serve South American markets. Engefor has enjoyed a well-earned reputation for superior service and quality manufacturing of Pillar melting systems. The Engefor transaction contributed engineering, sales and technical service talent while substantially increasing the installed base of equipment requiring periodic service. The Brazil market is a strategic priority of ABP as further evidenced by the new plant constructed in Atibaia which houses all sales, engineering, manufacturing and service functions.
2007 Add-On Investment
ABP Induction Systems Pvt Ltd was formed in India to service this robust melting market with aftermarket services, systems sales and engineering support. Manufacturing operations began within a new plant facility constructed on the outskirts of Vadodara in 2008.
2008 Pillar merger
CMA formally combined their two induction company investments after successfully establishing ABP as an autonomous independent company in all growth markets around the world. ABP is positioned to serve its customers in both the mature economies of North America and Western Europe and the developing growth markets in Asia and South America.
Effective January 1, ABP sold its U.S. Heating Division assets consisting of the two plant locations in Brookfield, WI and Sterling Heights, MI and the intangible assets associated with the Pillar brand products.
The ABP US Melting Division and all ABP international operations remain unaffected by the divestiture, a positive strategic transaction for both ABP investors and the buyer, a subsidiary of Park-Ohio (NASDAQ: PKOH).
2012 South African acquisition
ABP Induction Systems decided to strengthen its position in South Africa by acquiring the assets of Induction Furnaces, a company that had represented them in South Africa for a number of years.
An ABP large crucible induction furnace for steel production – IFM 11/65 t/42 MW
An ABP Ecotop hood for fume extraction
ABP Induction Systems GmbH (ABP), located in Dortmund, Germany (formerly ABB Foundry Systems) has for decades been one of the world’s leading manufacturers of high-throughput induction melting, pouring and heating equipment
ABP Induction Systems service