Innovative Motion Technologies (“IMT”) is a global industrial technology platform and industry-leading designer and supplier of unique interface and control solutions across a diversified set of market applications.
Before Cathay’s involvement, IMT was a small, global company with one brand, selling into the U.S., China, and Europe.
Challenge
When Cathay became the majority shareholder in 2016, the company was operating as its longstanding brand Raffel Systems. The shareholders expressed their desire to expand the company’s global footprint, professionalize the management team, and pursue a buy-and-build acquisition strategy. Cathay recognized the opportunity to diversify the company’s end-markets, continue to grow in the residential furniture market, grow its Chinese customer base, and diversify its suppliers.
Highly complementary
acquisitions
Revenue growth
over five years
End market diversification
and global expansion
Solution
To vertically integrate the supply chain, the Cathay Capital team led the acquisition of China-based supplier Fortress in 2018. Fortress now produces over 25 percent of the cost of goods sold and is trending higher thanks to untapped capacity for further growth. In addition, the former general manager of Fortress is now leading the business in China, which has more than doubled in size since 2018.
To diversify the company’s end markets to RV and Marine, Cathay Capital drove the acquisition of Micro-Air in December of 2021.
The acquisition provided immediate channel diversification, including
e-commerce and exposure to attractive aftermarkets. After the completion of the acquisition, Cathay worked with the team to rebrand as Innovative Motion Technologies or IMT and created a new website to represent the next phase in the company’s lifecycle.
In addition, the Cathay team was heavily involved in the company’s legal efforts to defend the company’s intellectual property and helped win a $100M U.S. jury verdict in favor of Raffel.
Now, the company sells in 22 countries across the globe (up from only four when Cathay invested) and has doubled its revenue since Cathay partnered with the company in 2016. IMT’s industrial technology platform continues to be well-positioned to integrate complementary acquisitions leveraging the significant engineering, manufacturing, sales, and management resources available.