Drives & Controls September 2022

n NEWS September 2022 www.drivesncontrols.com 8 US-BASED Convergix Automation Solutions has bought AGR Automation, the Scottish automation designer and systems integrator whose headquarters are in Arbroath. AGR also owns Aylesbury Automation in Buckinghamshire and has a factory in Ballymena, Northern Ireland. Financial terms of the transaction have not been disclosed. Convergix’s executive chairman, Mike DuBose, says that the acquisition, which marks his company’s first foray into Europe, will accelerate its global expansion. “AGR brings market-leading technical capabilities and exposure to strategic end-markets such as life sciences and consumer goods, while expanding Convergix’s capacity for growth,” he adds. AGR, founded in 1970, designs, develops and integrates automated systems for global customers in sectors including life sciences and consumer goods. It has around 130 employees and expertise in vibratory and centrifugal technologies, vision systems and robotics. More than 75% of AGR’s sales are outside of the UK. Managing director Derek Gaston will stay on in an advisory role. AGR acquired Aylesbury Automation in 2017 to expand its UK presence. In 2020, AGR completed new headquarters in Arbroath and a factory in Ballymena. Convergix is backed by the US-based private equity firm, Crestview Partners. AGR is the third investment in Crestview’s strategy to build Convergix into a supplier targeting the $500bn+ global automation market, with a focus on the $70bn SI and connectivity sectors. In 2021, Convergix acquired JMP Solutions in Canada, followed earlier this year by Michigan-based Classic Design. US firm Convergix buys UK-based AGR Automation and Aylesbury Automation DIGI-KEY ELECTRONICS, the US-based distributor which claims to offer the world’s largest selection of automation products and electronic components in stock for immediate shipment, has opened an 204,000m 2 expansion to its Product Distribution Centre, taking its total area to more than 278,000m 2 . The $400m facility – one of the 10 largest warehouses in North America – will allow the company to pick, pack and ship nearly three times its previous daily average of 27,000 packages to customers in more than 180 countries around the world. The new four-storey facility in Thief River Falls, Minnesota, is almost fully automated. The only task done by hand is the picking of parts. A system of wire-guided carts will cut transport times by more than 10%, as well as being safer. There are more than 43km of automated conveyors in the new facility, and an average order will travel more than 975m inside the building. Two primary conveyor systems provide redundancy in the event of breakdowns and offer opportunities for future growth. Scalability and room for exansion were priorities when designing the new building, and most of the fourth floor is not being used at present. The project has attracted local and state economic support, including a $40m grant from the state of Minnesota, and is expected to contribute an additional $500m in economic output to the region, as well as adding more than 1,000 new jobs over ten years. The company currently employs 3,600 people in Thief River Falls, and 1,600 more in other locations. “This is a significant milestone for all Digi- Key employees and our community,” says Digi-Key president, Dave Doherty. “Our new product distribution centre expansion will help us continue to deliver excellence to our customers for many years to come. As exciting as this expansion is for us, our hope is that our customers truly don’t notice a difference – the transition for them should be seamless and, if anything, result in an even better customer service experience than they are already accustomed to.” Digi-Key, which ships to customers around the world from its US base, offers more than 13.4 million components from more than 2,300 manufacturers. The opening of the new facility comes at a time of record growth for the company. It 2021 it expanded by 65%, with revenues rising from $2.7bn to $4.6bn. Bookings for 2022 are already up more than 25% on last year and the company expects to make 6.5 million shipments this year. Digi-Key has also added 250 new suppliers this year. Since work began on the expansion in 2018, Digi-Key has added 1,500 suppliers and 1.5 million part numbers to its inventory. Digi-Key’s new distribution centre contains 43km of automated conveyor lines Global distribution centre is one of the largest warehouses in US AGR Automation is strong in the life sciences and consumer goods markets