American Roller on acquisition avenue

UNION GROVE, Wis.—American Roller Co. is on a path of long-term growth. And along that path, the company has added its 12th location in the U.S., while maintaining locations in Canada and China.

The company in May acquired the assets of Schaefer Rolls location in Covington, Va. The location includes an approximately 30,000-sq.-ft. building, which boasts large roll fabrication, precision grinding and mechanical services needed in the paper and metal processing industries."

Schaefer added 20 employees to the American Roller family, bringing the total number of staff across all American Roller locations to 400.

"Essentially, we assumed the operations (at the Covington, Va., location) and hit the ground running," Daniel J. Cahalane, American Roller president and CEO, told Rubber News. "Product and service lines are highly complementary to American Roller's American Roller Way strategy and process, and complementary to the acquisition of Bonell Manufacturing made in Chicago last summer."

Cahalane added that Schaefer Rolls Covington invested more than $5 million in state-of-the-art equipment about five years ago. That investment allowed it to fit more seamlessly into the American Roller operations.

But that investment also gives American Roller the chance to grow.

"It means taking excellent assets, superb young talent and growing. We believe we will double the business within 12 months," Cahalane said.

The acquisition, he added, "plugs into American Roller's three business lines" including cores, coverings and coatings. Cahalane said the coverings line makes up 50 percent of the company's sales and it "is all about the rubber market."

Further expansion is consistent with the company's strategy to increase capabilities around industrial rollers and further penetrate markets as the company grows. The Covington team brings a wealth of knowledge in the paper industry and enhances American Roller's capabilities to do mechanical services in this area and further strengthens skills and capabilities in precision grinding and large roll capability.

As part of its strategic planning in 2019, American Roller partnered with Hamilton Robinson Capital Partners, bringing in key board members with deep experience in the Toyota Production System and methodology. Hamilton Robinson is a private equity firm based in Stamford, Conn., that invests in entrepreneur and family-owned companies or corporate divestitures with a dominant position in their niche sub-sectors of technical B2B services.

Over the past five years American Roller has acquired multiple organizations, re-tooled its entire manufacturing systems and infrastructure, and implemented the American Roller Way processes and technology in all locations across all support departments.

For instance, American Roller's growth plan involved several acquisitions in late 2022 and into 2023. They included the acquisition of Lake Forest, Ill-based Petco Inc. The location specializes in polyurethane and rubber roll coverings and fabrications for the graphic arts and coating markets and has supplied custom-engineered parts for general industrial markets. It further expanded American Roller's position in industrial rolls serving various manufacturing markets such as tire and rubber.

American Roller is set to make more announcements in the summer and Cahalane suggests that more improvement opportunities have yet to be realized.

"Stay tuned," Cahalane said. "There are many opportunities right now where people are transitioning to retirement or looking for partners to help with growth. If a business fits with what we are doing, we are always open to listening to an opportunity,"

American Roller is a provider of engineered services and industrial rollers, including rubber and urethane coverings, plasma coatings, and core fabrication. It was founded in 1938 and is based in Union Grove.