Brooks Automation builds robots and automation software used in manufacturing and labs. The company has more than 2,000 employees spread across roughly 14 countries.
After Thomas H. Lee Partners acquired Brooks Automation for $3 billion - the deal was announced in 2021 and closed the following year - the parts of the business that focus on life sciences were split off and renamed Azenta Inc. That company still trades on the Nasdaq. So what is left inside Brooks Automation is its core robotics and software automation business.
Brooks Automation's core robotics and software automation business serves industries such as semiconductor manufacturing, life sciences, and industrial automation. The separation from Azenta allowed Brooks to concentrate on its primary automation technologies.
Now that business is thinking about going public. Brooks is currently discussing an IPO with possible financial advisers, though a person familiar with the matter said, "talks remain preliminary and terms may shift." Representatives for Brooks Automation chose not to comment, and Thomas H. Lee Partners did not reply to inquiries.
Get the market news that matters in a five-minute read with Market Briefs, our free daily newsletter
With the IPO market heating up, the timing may be favorable for an exit.
Brooks would be joining a parade of private equity backed companies heading to the stock market.
Some of the names are already familiar. Jersey Mike's Subs, the sandwich chain backed by Blackstone, is looking to raise up to $1.09 billion from an IPO next week. Reformation Inc., a sustainable women's clothing brand owned by private equity firm Permira, may raise as much as $239 million.
Those are two very different businesses. But they share the same playbook. A private equity firm buys a company, grows it, and then takes it public to cash out some of its investment.
When the IPO market is hot, more of those deals happen. And right now, it is hot.
Brooks Automation's core business, which focuses on precision robotics and software controls, has benefited from rising demand for automation in semiconductor fabs and biotech labs. Its customers include major chipmakers and pharmaceutical companies that rely on its equipment to handle delicate materials in controlled environments. That steady demand could make the company an attractive candidate for public investors, even as broader market conditions fluctuate.
A wave of new IPOs means more choices for investors who want to buy into companies before they become household names. But it also means more noise.
The Brooks Automation IPO is far from certain. The company is still shopping for advisers and the deal could fall through or change shape. But the fact that it is even considering an IPO tells you something about where the market stands right now. The surge in PE-backed IPOs reflects a broader trend of private equity firms cashing out after holding companies for several years, often during a bull market.
Join Market Briefs, our free daily newsletter, for a quick daily rundown of the markets
