All Sections

Home | Business

Salem-based Standex acquires Agile Magnetics for $39M

By RYAN LESSARD
Union Leader Correspondent

October 08. 2018 1:56PM




SALEM — Publicly traded, multi-industry manufacturer Standex International Corp., headquartered at 11 Keewaydin Drive, recently acquired the private company Agile Magnetics for $39 million in an all-cash transaction, according to a news release.

Agile Magnetics, located at 24 Chenell Drive in Concord, produces “high-quality” and “high-reliability” magnetics that are used in military, medical, industrial and high-tech industries.

Agile President Jim Atwood said the company has about 80 employees and 15 temporary workers.

“We’re over 100 people,” he said. “We’re all staying on.”

Atwood said the company started searching for bidders to buy the company earlier this year, and Standex won the bidding process.

“We’re a very successful company in the region,” he said.

There are several barriers for operating a smaller-scale high-end magnetics manufacturing business, such as expensive engineering design tools for high-frequency magnetics and an ISO certification that is growing harder to achieve.

But by being part of the larger Standex organization, it will have the resources to scale up and pool its knowledge base.

“Now, we have a chance of becoming the best magnetics company in the world,” Atwood said.

He said Standex is already in the custom magnetics production space but both companies know different things about the manufacturing process, design capabilities and marketing these kinds of products. So, now they’ll be able to learn from each other to improve upon those things.

Atwood also expects the Concord company to grow from this deal.

While the magnetics industry is consolidating gradually because of the cost barriers for smaller companies, he said it is still growing.

His goal is to grow faster than the larger industry by capturing market share.

Agile Magnetics won’t be leaving the 40,000-square-foot Concord location, Atwood said. There’s still room for 30 percent more equipment in that space, and it just brought a second shift online.

“We can easily triple our business in this facility,” Atwood said.

Standex officials did not respond to inquiries by press time.

According to a press release, Standex Chief Executive Officer David Dunbar said he saw opportunities to offer complimentary products from Standex’s portfolio to Agile’s customer base.

“We have looked at many high-reliability magnetics businesses, and Agile’s deep expertise in custom engineered solutions and strong, collaborative customer relationships makes it an excellent fit for our organization,” Dunbar said in a statement.

Agile Magnetics had $17.2 million in revenues in the 12-month period ending Aug. 31.


Business General News Concord North Salem Salem


MOST POPULAR ARTICLES

More Headlines