Falfurrias merges RED Group, IDS into new industrial automation platform
What's the deal? Falfurrias Capital PartnersDealroom has a profile for this one. Try Dealroom → is combining Industrial Design Solutions and RED GroupDealroom has a profile for this one. Try Dealroom → into a new platform focused on industrial automation and control systems integration. RED Group chief executive officer Carl Fangue will lead the merged business. Terms were not disclosed.
What each side brings: IDS specialises in distributed control systems, programmable logic controllers, and control-system upgrades. RED Group, founded in 2006, adds operational technology and industrial control systems engineering, letting the platform serve customers from design through fabrication and field services.
Who they serve: The combined company works across data centers, utilities, power generation, water and wastewater, energy, maritime, chemicals, and manufacturing.
Why now? Falfurrias says demand is rising from data center construction, manufacturing reshoring, and industrial AI adoption, alongside aging infrastructure and a shortage of skilled technical labor. "Industrial automation demand is accelerating as data center buildouts and an aging workforce push owners toward integrators who can execute quickly and at a high standard," said Jubal Early, vice president at Falfurrias.
What's the endgame? The firm is building a service channel that helps customers modernise old systems and bring new capacity online. The deals mark Falfurrias's first industrial automation platform investment since it backed E Technologies GroupDealroom has a profile for this one. Try Dealroom → in 2018.
Falfurrias has raised roughly $4 billion across eight funds, investing in middle-market companies where it holds control positions. Early and partner Chip Johnson will join the platform's board alongside RED Group founder Kyle Remont and others.
The signal: The merger fits a wider pattern of investors assembling automation-services groups, echoing recent deals such as Capital MachineDealroom has a profile for this one. Try Dealroom →'s purchase of robotics integrator KC RoboticsDealroom has a profile for this one. Try Dealroom →. With data-center buildouts and reshoring straining a thin pool of technical labor, private equity is betting on integrators that can scale across the full control-systems stack.
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