Hypertherm Acquires OMAX
This deal forms one of the industry’s leading waterjet technology offerings.
Posted: March 20, 2019
OMAX Corporation (Kent, WA), a manufacturer of abrasive waterjet systems, plans to join forces with Hypertherm Inc. (Hanover, NH), a U.S.-based manufacturer of industrial cutting systems and software, following the signing of a definitive merger agreement that establishes OMAX as a wholly-owned subsidiary of Hypertherm. Upon the closing of the transaction, expected on or around April 9, OMAX industry-leading direct drive pumps, software, and applications technologies will combine with Hypertherm’s complementary portfolio of intensifier-based pumps and abrasive recycling systems, to form one of the industry’s leading waterjet technology offerings.
“When the late Dr. Olsen and I founded OMAX 25 years ago, our goal was to combine new motion control technology with software to create an abrasive waterjet system unlike anything else on the market. We more than succeeded, creating one of the world’s top waterjet manufacturers,” said John Cheung, the co-founder and chief executive officer of OMAX. “Together, we have been planning for the future of the company for some time. In planning for this future, we wanted a partner that shared our values and vision. We wanted a company that would protect our culture, provide stability for our employees, and give our customers products and services consistent with our mission statement. Though Dr. Olsen is sadly not here for today’s announcement, I am comforted knowing he completely supported and wanted this.”
“Hypertherm is excited to welcome OMAX to our family and to bring together a leading waterjet R&D and engineering team in the world with our hardworking and talented waterjet team in Minnesota,” said Hypertherm president and chief executive officer Evan Smith. “We are confident the combination of their cutting-edge technology and systems, innovation focus, strong brand name, commitment to customers, and excellent culture is a perfect complement to our waterjet offerings and plasma cutting industry leadership position. This enhances our strategy of delivering cutting solutions that put customer needs first.”
Hypertherm does not plan to make significant changes to OMAX operations, management structure, or distribution channels. Their current offices and manufacturing operations in Kent, where the majority of their 367 associates are located, will remain intact, with no consolidations or reductions planned, in keeping with Hypertherm’s no-layoff philosophy. Hypertherm also anticipates continuing both the Hypertherm and OMAX waterjet product offerings and brands, as these technologies and business models balance each other.
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