WAYNE, N.J.—Passaic Rubber Co. has purchased Pershing Roller Corp. from owner Bill Powers to create a new market for the company and expand the firm's rubber roller operation.
It acquired Pershing, a manufacturer of small- to medium-sized rubber covered rollers, for an undisclosed amount.
Passaic purchased all Pershing assets, including equipment and presses, all of the special tooling designed and made by Powers, and the company's customer list, according to Jeff Leach, chairman and chief operating officer of Passaic.
Pershing's factory in Bloomfield, N.J., was not part of the acquisition nor were the few employees, most of them part-timers, who were working at the site.
All of the purchased assets were moved to Passaic's 70,000-sq.-ft plant in Wayne.
Passaic is in the process of reformatting the presses and other machinery for its facility and system, Leach said. The acquired business will be absorbed into Passaic's roller department.
“We're very excited about this,” he said. “It's a great opportunity for us to grow our rubber roller business. Pershing has a wide spectrum of customers, ranging from original equipment manufacturers to distributors to users. The company primarily serves companies in North America.”
“We're working with their customers and trying to mirror what they did. This was a very good pickup for us,” he added.
Passaic's latest acquisition likely will increase sales within its rubber roller operation, Leach said, and he anticipates the business will grow further in the future. “We're looking to expand our presence in the rubber roller market.”
Headquartered in Wayne, the company previously specialized in the production of medium to larger sized rubber covered rollers along with a wide variety of other products, including endless belts, and calendered goods. The addition of Pershing expands its portfolio to include smaller and medium rollers.
The mid-sized, 96-year-old business also does a great deal of contract manufacturing for Fortune 500 and Fortune 100 companies.
Powers, an expert machinist who founded Pershing in 1969 and has run the business since, was considering retirement when he was approached by Leach about possibly selling the assets to Passaic.
They eventually reached an agreement that worked for both parties. “Bill also has agreed to act as a consultant to us,” Leach said. “Bill Powers is a straight shooter and a great guy. He has a wonderful reputation.”
He said Passaic, which over the last year has experienced organic growth with new product launches, has more innovations in the works. And it plans on remaining open to other acquisition opportunities.
To keep up with its growth, the company upgraded, added or replaced machinery and significantly improved its plant during the last two years at an estimated cost of $2 million.
Part of the reason it made those moves is that the firm does not want to have a lack of machinery or equipment breakdowns as the reason it failed to deliver products on time, Leach said. “That's our problem, not our customer's. So we do whatever it takes to be on time with quality products.”