Rockwell Automation to acquire process control and automation systems integrator

Rockwell Automation

Rockwell Automation Inc. on January 18 announced it has agreed to purchase Hiprom, a leading process control and automation systems integrator headquartered in Johannesburg, South Africa.

Hiprom customers include the top global mining firms with precious metal and coal operations in the Sub-Saharan region. Hiprom’s management team and all its 100 employees will join the Rockwell Automation Systems & Solutions business unit.

“This acquisition accelerates the growth of Rockwell Automation’s business in the Sub-Saharan region and further expands our customer presence in the global mining and mineral processing market,” said Hedwig Maes, president of Rockwell Automation’s Europe, Middle East and Africa region.

“Hiprom customers will continue to receive the high level of service they currently enjoy, and gain more direct access to the complete portfolio of Rockwell Automation products, services and solutions,” said Hein Hiestermann, Hiprom managing director and CEO. “Rockwell Automation customers will benefit from the expanded portfolio of application solutions, expertise and delivery capacity, specifically within the global mining and mineral processing market.”

“Strategically, this acquisition further strengthens our global project management and delivery capabilities and adds critical mass for our delivery of customer solutions in the rapidly growing Sub-Saharan market as well as globally in the mining, metals and minerals industries,” said Terry Gebert, vice president and general manager, Rockwell Automation Systems & Solutions business. “We look forward to a successful integration of the Hiprom domain expertise, project management and engineering talent into our global systems and solutions team.”

“Due to the improving global economy and increasing worldwide consumer demand, energy and commodity metal prices should continue to rise in the long-term, which will result in additional capital and operational expenditures for new and retrofit automation projects,” according to Craig Resnick, research director, ARC Advisory Group. "The acquisition of Hiprom should help Rockwell Automation to best leverage these market trends, as well as add some complementary geographic and vertical industry capabilities that will benefit its entire solutions portfolio.”

The thousands of engineers in the Rockwell Automation Systems & Solutions team design, build and upgrade control, safety, and information solutions for manufacturing clients. Working in tandem with a scalable partner network, the company’s global solutions business can address a wide range of projects including challenging multi-million-dollar enterprise projects that span two or more countries. Clients include oil and gas, petrochemicals, consumer industries, life sciences, automotive, tire and heavy industries such as cement, metals, mining, pulp and paper, and power utilities.

The acquisition is expected to close during the first calendar quarter of 2011 subject to the approval of regulatory authorities in South Africa.

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