Tension Packaging & Automation, a subsidiary of envelope provider Tension Corporation, has acquired US-based manufacturer Colorado Automation & Design (CAD) for an undisclosed sum.

The acquisition is intended to help the company address increasing demand for its solutions in the e-commerce and pharmacy automation markets.

Tension Packaging & Automation aims to leverage CAD’s capabilities to improve its technology and equipment, robotics, consumables, software products and service offerings.

It is also hoped that CAD will strengthen Tension Packaging & Automation’s supply chain capabilities.

Tension Corporation president and CEO Bill Berkley said: “We are excited to enter into this relationship with Colorado Automation & Design.

“Further expansion in the e-commerce and pharmacy automation space demonstrates our commitment to our customers and continued growth in adjacent markets.

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“CAD founder and CEO Brian LeFevre has built an impressive business.”

Established in 2005, CAD specialises in concept, design, manufacturing and installation solutions for automation applications.

It uses current technologies to provide custom automation solutions for several industries, including pharmacy, e-commerce and food packaging.

The two companies have been working together since 2009.

Tension Packaging & Automation division director Ken Myers said: “CAD shares Tension’s commitment to high standards, quality products and our customers.”

CAD is authorised as a robotics system integrator by Japanese conglomerate Fanuc and US-based factory automation brand Allen-Bradley.

The company has an in-house machine shop and an electrical panel shop certified according to UL508A standards.

CAD founder and CEO Brian LeFevre said: “Our talented and tenured team has helped CAD become respected experts in the industries we serve.

“I’ve worked with the Tension team for years and have long admired their positive, people-first culture, as well as their focus on quality and innovative products.

“Both our CAD employees and our valued customers are in great hands with Tension.”