Hoosier Gasket buys Brickpack

INDIANAPOLIS—Hoosier Gasket Co. in Indianapolis has experienced both organic and "acquired" growth over the last few years, a trend that is continuing with the company's recent purchase of a gasket and fabrications provider in Sweden.

Brickpack A.B.'s facilities and products were purchased by Hoosier Gasket in February, according to a news release. Brickpack will retain its brand for the time being and is expected to operate as a wholly owned subsidiary of Hoosier Gasket, but will fall under the Indiana company's growing portfolio. Terms of the deal between the two privately owned companies were not disclosed.

As part of the acquisition, Hoosier Gasket acquires a leading provider of gasket and fabrications for the engine, transmission, processing and material handling markets in Europe. Company-wide, Hoosier now has roughly 210 total employees, including 50 outside of the U.S., with 30 of those coming as part of the Brickpack acquisition. The company is a global designer and provider of rubber-coated metal gaskets, rubber seals, soft gaskets and fabrications for the engine, powertrain, HVAC, appliance and industrial markets.

The purpose of the acquisition is to further expand Hoosier's product portfolio and global growth opportunities for existing customers, while providing an entry point for new customers to be introduced to Hoosier Gasket's product line, said Dan McDowell, Hoosier's chief commercial officer.

"This is a watershed moment for Hoosier Gasket. This is unique for us because it signifies that we are no longer confined to just the North American and Chinese markets. We are a global player," said McDowell.

Hoosier Gasket has made the investment to continue the growth trajectory it has seen over the last five years, McDowell said. Adding the capabilities of Brickpack to the existing operational capabilities allows Hoosier Gasket to grow globally.

"Adding the value-added engineering and design services to the existing Brickpack capabilities will allow us to expand into the multinational EU customers," McDowell said. "Those services add value to our offering, leading to more profitable releases, and is necessary to participate in original equipment programs."

"The (Brickpack team) has the capability to make great products, but now we bring the design and engineering capacity that can further grow the business. We offer all of the requisite design and validation services that our larger competitors offer, but we are more nimble and responsive," McDowell said.

Hoosier Gasket was founded in 1967. Its customers include such companies as Cummins, Caterpillar, Allison Transmission, John Deere, Dana and Volvo. Many of its current projects are related to end products in the electric vehicle markets from hybrids to other product line support.

The expansion into Europe with Brickpack allows Hoosier Gasket to leverage its work in the EV sector in both China and the U.S.

"Now we expect to leverage our technical capabilities worldwide as the EV sector continues to be where much of the new platform development work is happening," McDowell said. "Specifically in the European Union, but especially in the heavy truck industry, which is the largest market we serve.

"(This acquisition) is a major piece of our puzzle for global expansion, ultimately allowing us to reduce our supply chain times by having local manufacturing in all the major markets."

There are operational benefits to the acquisition as well. The Brickpack purchase, along with its existing facilities in the U.S. and China, "provides a global footprint to support development programs at our multinational customers," said CEO Jeffrey Jackson. The acquisition also is expected to "result in greater efficiencies with the sharing of manufacturing methods," according to Chief Operating Officer Ryan Smith.

Brickpack made gaskets in a similar product line as its new parent company, and it has made products for deep draw stamping, a new service for Hoosier Gasket.

"We can now integrate these (services) into our operations globally, which diversifies our portfolio," McDowell said.