Birmingham Fastener enters rubber space

MAGNOLIA, Texas—Birmingham Fastener continued its run of recent acquisitions with the purchase of Champion Sales and Manufacturing Inc., a rubber gasket company based in Magnolia. The deal closed in May, and specific terms between the two privately held companies were not made available. However, the parent company plans to double the footprint of Champion's presence in Magnolia by adding significant investments in machinery and staff.

The expansion at Champion's location has started, Holmes said. Permits have been applied for and retention pond construction has started.

With over 100 years of combined experience in the rubber gasket industry, the acquisition strengthens Birmingham Fastener's waterworks product offering and manufacturing diversity. Most importantly, it allows the company to add teammates, according to Rodney Holmes, vice president of sales at Birmingham Fastener.

Champion manufactures mechanical joint, push-on, and other gaskets for the waterworks industry. With this acquisition, Birmingham Fastener and its sister companies can expand product and service offerings to their customers. Talks about a potential deal had been in the works for roughly one year.

"(Champion CEO) Jerry Franey has always been someone I have looked up to in the waterworks industry," Birmingham Fastener CEO Brad Tinney said in a statement. "I am deeply humbled that his family chose Birmingham Fastener to continue the legacy he started in 1983. We both share a deep belief in domestic manufacturing."

Birmingham Fastener has been making and supplying waterworks fasteners for more than 40 years. Champion Manufacturing served as a supplier for Alabama-based Birmingham Manufacturer for three decades, Holmes said. The company was known for its experience in creating a range of custom-made gaskets.

Champion's technology and expertise will allow Birmingham Fastener to better support its customers that need custom-built gaskets made from specialty rubbers and elastomers, Holmes said.

"It has been a great partnership between our two companies for a long time. We had a shared vision," Holmes said.

Holmes indicated that Franey and Champion leadership did not want to sell the business to a private equity firm because of the potential adverse impact on its work force. Champion's roughly 35 employees all have been offered their same positions with Birmingham Fastener.

"We are two family-owned companies. It's a really good fit and will allow us to further grow our business," Holmes said.

With the acquisition, Birmingham Fastener's employee count is nearing 600. The deal lessens some of the supply chain and gasket import pressures the company had been experiencing the past two years.

"It shores up our product lines for customers," Holmes said. "Containers are hard to find and (gaskets and other finished products) are backed up and expensive. Now we have this expertise under one roof."

Both Champion and Birmingham Fastener have grown their businesses around the waterworks industry since the 1980s. Birmingham Fastener produces gaskets and fasteners for end products like fire hydrants, and will now expand to making other industry accessories as well. It serves such industries as structural steel, metal building aerospace, defense, utilities, transportation and more.

Long-time Champion Manufacturing employee Baron Yarborough joined the Birmingham Fastener family of companies as the general manager of Champion Manufacturing. Yarborough has been a rising star in the fastener industry, involved in many industry organizations, including the Fastener Training Institute, Holmes said. He is chairman of the Southwestern Fastener Association.

In his new role, Yarborough will lead the manufacturing and sales of rubber gaskets for the waterworks industry. His strong leadership skills and proven track record are valuable assets that will allow Champion to experience strong, sustainable growth, Holmes said.

"I am so pleased to be joining the Birmingham Fastener family and joining the ranks of so many industry rock stars," said Yarborough. "Champion has a proven track record of producing high quality gaskets for many industries and we are all very excited for the opportunity to expand upon that legacy."

Birmingham Fastener acquired K-T Bolt Manufacturing Inc., a provider of custom fabrication products, in April and has brought other small manufacturers to support growth over the last decade. K-T Bolt also offered closed-die forging, in-house heat treating and electropolishing.

"We are on the hunt for right-sized, privately owned companies within the purview of our business for possible acquisitions as a way to continue our growth," Holmes said.

Founded in 1980, Birmingham Fastener is a domestic manufacturer and distributor of fasteners for structural steel fabrication, metal building manufacturers, waterworks, OEM and MRO. The Birmingham Fastener family of companies consists of multiple locations across the nation. In 2018, it received the Alabama Manufacturer of the Year award.