Ares Private Equity Fund Invests Substantial Equity Capital to Support AIR's Growth Strategy

AIR Acquires TA Systems and Modular Automation

Ares Management Corporation (NYSE:ARES) announced today the launch of Automated Industrial Robotics Inc. ("AIR" or the "Company"), a newly formed industrial automation company designed to capitalize on increasing global demand for manufacturing automation solutions. An Ares Private Equity fund ("Ares") has invested substantial equity capital to support AIR's acquisition and organic growth strategy.

AIR is focused on acquiring and facilitating the growth of differentiated industrial automation companies serving diverse end markets with strong operational histories and tenured management teams. Grounded in a culture of safety, transparency and pursuit of excellent customer experience, AIR seeks to leverage complementary teams and technologies to deliver innovative, cost-competitive solutions to address the complex and challenging needs of global businesses. AIR will seek to grow through strategic investments in the technologies of the future, in pursuit of delivering excellence in automation.

Ares founded AIR with Brian Klos and Darragh de Stonndún, Executive Chairman and Chief Executive Officer of AIR, respectively. Mr. Klos, most recently a Partner in the Ares Private Equity Group, brings over 17 years of M&A, organizational development and strategic advisory experience across a breadth of industries, including industrial technology and automation. Mr. de Stonndún, an industrial automation industry veteran, brings over 20 years of leadership and operational experience, including managing global key accounts at ATS Automation and co-founding BBS Automation.

In connection with the launch of AIR, the Company has acquired two foundational companies, Totally Automated Systems ("TA Systems") and Modular Automation ("Modular"). Based in Detroit, Michigan, TA Systems has a more than 45-year history of designing and manufacturing fully integrated and stand-alone assembly machines for automotive, home appliances and other sectors. Based in Shannon, Ireland, Modular has been operating for nearly 40 years and is a leading automation solutions provider in the medical technology industry. These two companies bring a strong cultural and technological alignment as well as deep industry vertical knowledge and experience.

Mr. Klos and Mr. de Stonndún said, "We are excited to work with Ares in bringing AIR to global markets. Industrial automation is a high-growth industry benefitting from a number of secular tailwinds, and we are confident that AIR is well-positioned to build a competitive global platform through strategic acquisitions and organic growth. With our initial investments in TA Systems and Modular, we are establishing a relationship-driven team with a blue-chip customer base across diverse industries. Through our integration, we will share our respective strengths as we continue to enhance efficiencies, drive technological innovation and industry-leading automation solutions to customers around the world."

Matt Cwiertnia, Co-Head of the Ares Private Equity Group, said, "I firmly believe that AIR, with the support of Ares, has a differentiated opportunity to build a scaled player in the highly fragmented industrial automation industry. Brian and Darragh together bring substantial experience in acquiring, integrating and operating businesses, and we are excited to work with them to position the Company for long-term growth."

Ted Brown, CEO of TA Systems, said, "TA Systems is thrilled to join AIR, marking a pivotal moment in our journey of growth and diversification in both technology and industry verticals. As part of AIR, we remain committed to delivering exceptional value and service to all customers and contributing to the continued evolution of automation technologies."

Vivian Farrell, CEO of Modular, said, "This represents a significant milestone for Modular and empowers us to expand the reach of our innovative solutions and advanced automation capabilities for our global medical technology clients. Looking ahead, our teams are energized to continue building on our shared values and serving customers wherever they operate."

About Ares Management Corporation

Ares Management Corporation (NYSE:ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, private equity, real estate and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of September 30, 2023, Ares Management Corporation's global platform had approximately $395 billion of assets under management, with approximately 2,800 employees operating across North America, Europe, Asia Pacific and the Middle East. For more information, please visit www.aresmgmt.com.

About Automated Industrial Robotics Inc.

AIR is a newly formed industrial automation company focused on acquiring and facilitating the growth of leading industrial automation companies serving diverse end markets with strong operational histories and tenured management teams. Grounded in a culture of safety, transparency and pursuit of excellent customer experience, AIR seeks to leverage complementary teams and technologies to deliver innovative, cost-competitive solutions to address the complex and challenging needs of global businesses.

About TA Systems

Located in the Metro Detroit area, TA Systems provides custom automation assembly systems across many industries, applying a wide range of proven technologies in the manufacturing environment. For 45 years, TA Systems' vertical manufacturing processes have provided unparalleled speed, quality, value, and service to its customers. Its comprehensive product line reflects an in-depth understanding of the most critical technologies essential for automation in the decades ahead, showcasing its unwavering commitment to innovation and excellence.

TA Systems takes pride in its commitment to ensuring the success of its customers. It prioritizes delivering the highest value, quality, and effective risk management tailored to its customers' manufacturing requirements. With a wealth of experience and the integration of TA Systems' Enterprises Profitability Improvement (EPI) System, TA Systems empowers its clients with a transparent pathway for continuous improvement in both production and quality enhancements.

For more information please visit the TA Systems website at https://www.ta-systems.com/

About Modular Automation

Modular Automation, based in Shannon, Ireland, is a Tier 1 automation partner offering automation and integration solutions to the world's leading medical technology manufacturers. They excel in the integration of the latest, enabling technologies such as collaborative robots, autonomous mobile robots (AMR's) and industry 4.0 applications. The company's excellence is rooted in a fusion of pioneering design, advanced engineering, and an unwavering dedication to precision.

Modular's purpose is to enable the world's leading medical technology companies to manufacture sophisticated, ultra-high quality, life-changing products, at scale. Over its almost 40-year history, it has garnered a significant reputation with its customers for delivering high quality, reliable automation solutions. Modular has transformed into a beacon of innovation, fostering a team of over 150 professionals committed to delivering automated solutions specifically tailored for their medical device customers.

For more information, please visit the Modular website at www.modular-global.com

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