While Grand River saw about $53 million in net sales last year, the March 9 acquisition should increase the company's net sales in its lathe-cut division by "about 10 percent," Chaplin said.
The former ASC unit is located about two-and-a-half miles from Grand River's 135,000-sq.-ft. production facility in Ashtabula. The addition now gives Grand River about 40,000 square feet dedicated solely to lathe-cut product manufacturing.
"ASC will continue in molding, which we do not do," Chaplin said.
The acquisition also brings valuable intellectual property into the fold for Grand River.
"Probably one of the biggest things is the intellectual property and rubber formulations that are coming to our portfolio," he said. "There are many ways to get end results. It is interesting to see how chemists make their formulations over the years.
"And we are bringing on probably between 150 and 200 new recipes. Some we will put in play right away, some will take some time to digest and see where they fit."
For its compounding, Grand River maintains a joint venture with Wooster, Ohio-based Wooster Elastomers, as well as contracts with third-party custom mixing firms.
In terms of topical market segments, the acquisition of the former Ashtabula Rubber brings a number of commercial avenues for potable water applications and "some additional specialized niche customers."
"It gives us up to 23 market segments in total," Chaplin said. "The diversity of our market shares is what really helps Grand River Rubber—in normal times and during the pandemic.
"We are structured so that every product line is not down at one time."
Other lathe-cut gasket and seal applications include oil and fuel filters, Cam Lock couplings, food packaging and electrical transformers.
Raw material pricing has been "pretty slow to come down, if at all," Chaplin said.
"It's the same message there, what people thought might be transitory at one time is not turning out to be the case," he said. "There are too many high costs right now—from labor to utilities to logistics and packaging—and they are not coming down any time soon.
"And this was part of the reason for the acquisition—to get another layer with small steps for a lathe-cut line to cover."