PE-backed Angstrom Technology pursues acquisitions to fill cleanroom market gaps

Lyle Ellerbee

WALKER — A couple of the latest strategic acquisitions must further put together cleanroom designer and builder Angstrom Know-how Ltd. for abroad assignments as the organization proceeds a non-public fairness-backed string of acquisitions.

After New York Town non-public equity company ASGARD Associates & Co. acquired a managing interest in Angstrom in November 2020, Angstrom has persued deals to expand its presence across the entire world and deliver new capabilities to its services offerings.

Angstrom specializes in developing, constructing and preserving cleanrooms for producers throughout a spectrum of industries, ranging from automotive and healthcare packaging to aerospace and gene therapy.

The Walker-primarily based corporation is now targeted on continuing to roll up what President Matt Isard identified as a fragmented cleanroom marketplace.

“There are a lot of different gamers in the marketplace, and it looks to be that no two cleanroom suppliers are the similar,” Isard stated. “Everyone would seem to have their own unique spin to the business enterprise or market. We do see an chance to consolidate and start to roll up some of these more compact to mid-dimension firms and in essence buy their reserve of business, add our course of action and techniques to them and test to improve our footprint as Angstrom.”

As section of the ASGARD Partners portfolio, Angstrom has caught to that deal-happy mantra presently this 12 months, opening 2022 by getting United Kingdom-centered cleanroom producer Connect 2 Cleanrooms Ltd. (C2C). The organization followed that deal with the acquisition of England-based mostly cleanroom design and engineering business Precise Environments Ltd.

The acquisitions assisted cement Angstrom’s presence in the European market place when also bringing new revenue streams to the business enterprise.

For instance, C2C not only layouts and installs cleanrooms, but it also provides consumables to shoppers and can enable with the validation and certification processes.

“Once a cleanroom is constructed, you need to have hair bonnets, shoe covers, neoprene gloves, suits — they distribute all that to the customer,” Isard mentioned.

Ahead of the overseas acquisitions, Angstrom in 2021 acquired Irvine, Calif.-based Crafted 2 Spec, which types and builds turnkey cleanrooms, providing Angstrom a foothold on the west coast.

The geography of Angstrom’s development is strategic as Isard strives to preserve a presence in regions that could possibly be regarded hotbeds for industries with higher need for cleanrooms.

As for its own shoppers, Angstrom avoids staying weighted in any certain marketplace phase, pursuing alternatives in any market that demands them. Isard said some of the hotter marketplaces include things like health-related packaging, mobile and gene therapy, and aerospace.

Meanwhile, the organization is actively searching for locations as component of a achievable growth as it outgrows its space at 3509 3 Mile Highway NW.

Chance in advance

Stephen Rapundalo, president and CEO of statewide bioindustry trade team MichBio, sees the prospect for improved need for cleanrooms in his industry, citing a slew of expansions. This involves some, like Pfizer Inc., that are linked to COVID-19 vaccine production.

He also highlighted the cannabis sector, which he considers to be an rising current market.

“Another region of explosive expansion is the cannabis place,” Rapundalo claimed. “We’ve received an upcoming celebration —  a hashish science symposium. We’ve viewed elevated interest and inquiries from cleanroom corporations that want to take part and exhibit their wares. That is an spot that is expanding by leaps and bounds.”

When assessing the state of cleanroom vendors offered to Michigan organizations, Rapundalo explained the condition has customarily been residence to scaled-down gamers, building a have to have for suppliers that supply a fuller vary of companies that fulfill the more intensive requires of much larger assignments.

“It’s like with many other product places, in which you have to build full spectrum solutions beyond just the actual physical infrastructure,” he reported. “In get to do that, I suspect you have to have included abilities in some way, regardless of whether which is by means of organic and natural expansion or by acquisition. So, I feel Angstrom has strategically made the decision on a route for its expansion and it has aggressively embarked on that.”

Rapundalo also talked about the growth for Grand River Aseptic Producing Inc. in Grand Rapids, which broke ground last tumble on a $50 million, 18,000-sq.-foot enlargement to its facility. This adopted a $60 million, 60,000-square-foot enlargement that opened in June 2020.

GRAM Vice President of Shopper Pharmaceutical Companies John Wichelt stated that the bulk of perform — formulation and filling — is carried out in cleanrooms. The company manufactures sterile injectables, requiring much more in depth cleanroom steps.

“The kind of producing we do, the creating and utilities are intended all around supporting that cleanroom surroundings as perfectly as other essential utilities,” mentioned Wichelt, whose business manufactures the COVID-19 vaccine for Johnson & Johnson and performs with Grand Rapids-based Midwest Cleanroom Associates for its cleanroom desires. “The cleanroom is a single of the most crucial areas of structure.”

Cleanroom house is just as crucial for companies like Gentex Corp., the Zeeland-centered Tier 1 car provider of electronic eyesight, related vehicle, dimmable glass and fire security technologies.

The manufacturer largely addresses its cleanroom wants in-home, but it has labored with distributors just before, including Angstrom Know-how.

Paul Flynn, Gentex’s vice president of production operations, discussed that 85 p.c of Gentex’s functions entail a course of action that takes advantage of cleanroom room. They use these environments tactically, setting up scaled-down spaces for jobs like assembly, where by they have to fight particulate matter and dampness.

This dynamic underscores how cleanroom area has come into bigger demand as car or truck parts progress in technological sophistication.

“As auto producers adopt optical technologies — these cleanrooms are essential to assemble digicam and eyesight systems,” Flynn stated. “Displays, much too. … For any form of screen, we will use a cleanroom for the assembly there.” 

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