The transaction to buy Precix, legally known as Acushnet Rubber Co., was made through Zhongding subsidiary ZD USA Holdings Inc. Financial details weren't disclosed. No changes in either the firm's work force or management team are planned, officials at Zhongding said.
Precix makes a variety of high performance sealing parts at its 305,000-sq.-ft. plant in New Bedford. It also has a custom mixing operation at the facility. The company has grown rapidly in the last four years, doubling its revenue since 2009 and expanding its work force to 350 from 195.
It primarily serves the automotive, aerospace, energy and industrial markets.
ZD's investment in Precix “speaks highly of what we have accomplished in positioning our company as the most trusted name in fuel seals, O-rings and custom elastomer solutions,” according to David Slutz, president and CEO of Precix.
He said the acquisition creates an opportunity for Precix to promote its market position and further strengthen its global presence and brand. The employees at the company are what attracted ZD to Precix, he said. “We see this as a strong move to ensure jobs for our people.”
The two companies' operations in the U.S. fit well together, Slutz said, pointing out that Precix will be able to provide custom mix and finished products to Zhongding to complement what the firm already produces.
In addition, he said, Zhongding's strong presence in Asia will be a big benefit for Precix, which has annual sales of less than $5 million on that continent. The potential there is virtually limitless, the executive said.
Strasburg, Ohio-based Zhongding, part of China's Anhui Zhongding Holding Group of companies, said it has a strong global presence as an engineered rubber parts manufacturer, primarily serving the automotive and heavy industrial sectors. It operates 20 plants globally, five of which are in the U.S.
“Precix produces very high-quality sealing products through its unique set of manufacturing capabilities and sells to a long-term, steady customer base,” according to Steve Seketa, general manager of ZD. The current management team at Precix “has grown and improved the performance of the business dramatically and we are excited to support the continued expansion.”
He said that ZD's global footprint and complementary product lines will help accelerate Precix's growth and improve the customer relationships of both companies.