by Maureen Flanagan
Since 1961, PaR Systems, Inc. has installed more than 1,000 robotic systems in countries all over the world, providing automation in settings ranging from food and beverage operations to the harsh environment of nuclear power plants. A leader in the design, assembly, and installation of large-scale, high-precision robotic systems, PaR also services its systems after they are installed.
In a March 31, 2002 "one-stop" buyout, American Capital Strategies, Ltd. (Nasdaq: ACAS) acquired the company, investing $36 million in senior debt, subordinated debt and equity. PaR's management team invested alongside American Capital.
"With American Capital's support, I expect PaR Systems to accelerate the deployment of robotic products and services for the success of our growing family of customers using long proven as well as new technologies," said Mark Wrightsman, the company's CEO.
The company employs over 150 people, including 70 engineers, who designed and developed PaR's robotic controllers and software. These controllers are integrated into complex mechanical designs to make robots functional in many and varied settings.
Founded by a group of former General Mills engineers in 1961, PaR Systems was primarily a developer of remote handling systems for hazardous materials such as radioactive materials, chemical weapons, land mines and other dangerous and volatile elements. As nuclear power emerged as an alternative energy source in the 1960's and 1970's, PaR built on its environmental expertise and became a leader in outfitting nuclear plants with fuel handling and fuel storage systems.
Today PaR operates five different business segments. For the nuclear market, PaR's large overhead gantry cranes for fuel handling and transfer are used in nuclear plants worldwide. The company's products enable nuclear power operators to reduce downtime and achieve significant savings as they upgrade equipment and systems and service their plants. PaR has solidified its leading position in the market though strategic relationships with Westinghouse Electric and General Electric.
In the environmental market segment, PaR is the leading U.S. supplier of telerobotic electro-mechanical manipulator systems on its robotic systems. These manipulator systems are used in over 90% of high-hazard applications and are superior to competing hydraulic manipulators. The company's reputation for safety and reliability has given it a competitive edge as the Departments of Energy and Defense continue to clean up and decommission nuclear sites across the United States. American Capital anticipates that PaR will be able to partner with Roy F. Weston, another American Capital portfolio company serving the same environmental customers, to better solve the complex problems facing those customers.
Leveraging its technical expertise, the company has penetrated other markets through a series of customized products. Its custom robotics segment is focused on developing robots for high-precision applications, particularly in the aerospace and marine industries. PaR's precision-movement automation expertise is vital to such projects as the environmentally friendly Boeing-developed Flashjet depaintng system and the Department of Defense's Joint Strike Fighter and F-22 fighter aircraft, as well as on AIRBUS' A380 program.
Initially designed for a unique application, PaR's Vector Waterjet is now marketed to a variety of end-users and competes in one of the fastest developing sectors in the manufacturing industry. These specialized cutting tools operate on the principal of erosion and cut materials with a jet of highly pressurized water. They offer advantages over traditional machine tools because of their ability to cut a wide range of materials, e.g. from steel to foam, without producing a heat-affected zone.
The company also provides robotic equipment that automates material handling for the food and beverage and related industries. PaR develops and designs robotic equipment used for packaging, tray loading and palletizing operations. The company also engineers and assembles integrated systems to meet specific customer needs.
"PaR is an exceptional addition to American Capital's portfolio," said David Ehrenfest Steinglass, ACAS Principal. "It combines state-of-the-art robotic technology with a lean manufacturing culture that enables it to rapidly adapt to its dynamic markets."
Click here for more information about American Capital's portfolio.
In the March 29 buyout, American Capital provided a $36 million financing package. The financing is one of the largest total investments ACAS has made since its IPO in 1997.
PaR is well positioned for further growth. Opportunities in the nuclear power industry are plentiful as demand for equipment upgrades and new power reactors increase throughout the world. In the environmental sector, the U.S. government continues to commit vast amounts of money and resources to clean up and remediate radioactive sites. Markets such as the Vector Waterjet segment are poised for rapid expansion and the broad applications for this technology give PaR significant opportunities. In all areas in which it competes, the company maintains competitive advantages through its engineering and design expertise, reputation, and strategic marketing agreements.
As it continues to build market presence, PaR is in an excellent position for external growth. Its strategic plan calls for further acquisitions that will give the company an even more commanding share within specific segments of its markets.
No longer the stuff of science fiction, robots are increasingly more integrated into business operations throughout the world. With technical expertise and commitment to innovation, safety and reliability, PaR Systems is ready to extend the reach of robotic systems farther than ever before.
