Helios' acquisition of Wisconsin firm said to 'turbocharge' new product development

Helios Technologies Inc. is expanding its specialized engineering capabilities through the acquisition of Wisconsin-based i3 Product Development, a custom engineering services firm that specializes in electronics, mechanical, industrials and software.

i3’s 55-member engineering team will complement Helios’ existing internal engineering operations, including its industrial design and rapid prototyping capabilities, according to Helios president and CEO Josef Matosevic.

“Innovation has been the lifeblood of Helios from its founding,” Matosevic said.

Sun Prairie-based i3 will “turbocharge our efforts to be the most innovative company focused on the intersection of the hydraulics and electronics markets ... this flywheel acquisition fits into our technology road map strategy like a glove and will continue to make us incredibly tough for our competition to follow,” Matosevic said.

Josef Matosevic, president and CEO of Helios

Helios

Helios did not disclose the transaction terms but said it would fund the deal through a combination of cash and stock. Nearly 70% of Helios’ capital expenditures have gone toward acquisitions in the last five years.

The deal with i3 marks the eighth major acquisition by the Sarasota, Florida, hydraulics and electronic controls technology manufacturer since 2020. Since last July, Helios has acquired two specialist hydraulics manufacturers. The company also opened a high-tech, 22,600-square-foot warehouse and logistics center in Italy in March.

Matosevic said in a previous interview with the Tampa Bay Business Journal that Helios’ M&A strategy has focused on deals that diversify the company’s business mix rather than add to its size and revenue growth.

In March, Helios distributed its 105th consecutive quarterly cash dividend to shareholders, which amounts to more than 26 years of uninterrupted dividends, financial reports show.

Helios (NYSE: HLIO) plans to surpass $1 billion in annual revenue in 2023. Last year, Helios reported $885 million in revenue.