Lincoln Electric Holdings, an Ohio-based global manufacturers of welding equipment, has lately declared taking over Zeman Bauelemente Produktionsgesellschaftm.b.H., a Zeman Group’s unit, in an attempt to strengthen its automation growth in structural steel applications.
Headquartered in Austria, Zeman stands as a leading producer of arc welding systems and robotic assembly that automate the welding and tacking of steel beams. These systems are generally being sold to infrastructure and structural steel segments customers around the globe under the brand name of Steel Beam Assembler (SBA).
As per credible sources, the recent acquisition is expected to boost Lincoln’s annual automation sales by 10%, while looking forward to expanding its international automation capabilities to support its Higher Standard 2025 Strategy.
Moreover, the deal is likely to provide enhanced efficiency to structural steel fabricators, while offering potential capacity to address the mounting demand for infrastructure and structural steel projects. Importantly, the company is also laying much focus on new product developments and making use of digital platforms to engage its clients.
Speculations have it that Lincoln’s product revelations in the automation solutions market are expected to stoke growth for the company in the upcoming years as it is currently eyeing on cost-reduction actions to sustain profit margins.
In line with the latest acquisition, Lincoln is also expected to continue to evaluate its M&A decisions focused primarily on tuck-in assets, supporting its strategy of Higher Standard 2025.
For the record, Lincoln Electric has been observing improving order rates across all the segment, amidst the recuperating COVID-19 situation. It has been estimated that the current-year organic sales growth in high-single digits would be driven by the current demand scenario. In light of this, Lincoln estimates an incremental margin to average within the mid-to-high 20% range by 2021 end.
According to official sources, stakes of Lincoln Electric’s have risen by 71.7% in the past year, amidst COVID-19, exceeding the industry’s growth of 41.2%.