Blackford Capital’s recent acquisition of an automation engineering services and training firm will help boost a new platform that the Grand Rapids private equity firm launched last year.
Blackford Capital executives recently announced the acquisition of Pennsylvania-based Data Science Automation (DSA). Terms of the deal were not disclosed.
The addition of DSA builds on Blackford’s 2023 acquisition of PACIV, a Puerto Rico-based industrial automation provider. DSA is the first add-on acquisition and will help expand the PACIV platform’s North American operations, boost engineering and technology capabilities and offer new customer opportunities.
“We’re delighted that (DSA) agreed to partner up with us and we’re really excited about how both of these businesses are going to be able to complement each other going forward,” said Jeff Johnson, managing director at Blackford Capital and chairman of the board of PACIV.
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Founded in 1993, DSA is a controls systems integrator that provides services such as automation, measurement, machine building, mechatronics and consulting and training to companies across various industries.
DSA has operations in Pittsburgh and Cleveland, employing about 22 people between the two locations.
Johnson said Blackford came across DSA while seeking to grow the PACIV platform with an add-on acquisition that could expand services and geographic footprint.
“We have actually been working fairly aggressively at identifying other businesses that we think are complementary in nature to PACIV and ones that fit the criteria of geographic expansion, broadening our customer and market base, and broadening our service offerings,” Johnson said. “This was the company we identified in terms of our research.”
As “big believers” in the automation sector and the opportunities for growth, the Blackford team is eager to now grow the PACIV platform, according to Johnson.
DSA founder and CEO Rich Brueggman, along with the rest of DSA’s employees, will remain in their roles following the acquisition.
Johnson said Brueggman wanted to remain with the business but transition out from an ownership role. He rolled equity into the transaction and will stay on to continue to grow the business.
“Joining Blackford’s industrial automation platform and cooperating with a seasoned team will allow us to not only enhance our market position but also accelerate our collective growth trajectory,” Brueggman said in a statement. “We are confident in our combined ability to drive bigger success and provide enhanced value to our customers and partners.”
Varnum LLP served as legal adviser and Baker Tilly served as the financial and tax adviser to PACIV in the deal.
Benchmark International served as exclusive investment advisor, DGPerry served as accounting/tax advisor and Lynch Law Group served as legal advisor to DSA. HCAP Partners provided debt financing for the transaction.
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