Megadyne reaches new markets after purchasing Sampla

FAIRFIELD, N.J.—Rapidly expanding Megadyne S.p.A. expects to make greater inroads in three of its major markets—America, Asia and Europe—now that a deal to buy Sampla Belting S.r.L. has been finalized.

Astorg Partners, an equity firm and majority shareholder of Megadyne, along with the Tadolini, Cohenca and Cukurel families and Fondo Italiano d'Investimento, which hold a minority interest in the belt maker, announced July 1 that Megadyne purchased Sampla from the Depaoli family in a moved aimed at strengthening its global conveyor belting business.

Financial details were not disclosed.

Headquartered in Agrate Brianza, Italy, Sampla manufactures custom conveyor belts with a product range running from standard belts to those designed for unique applications. It operates two manufacturing plants, one in the U.S. and the other in Italy.

Sampla's belts are used in numerous light industries, including food processing, logistics and textiles. The company primarily produces belts made from thermoplastic urethane, polyvinyl chloride, silicone, polyolefin and other materials.

It fits well with Megadyne, which was established in 1957. Mathi, Italy-based Megadyne is a global leader in the development, manufacture and distribution of rubber and polyurethane power transmission belts, matched components, complete belt systems and other complementary products.

Sampla, founded in 1962, will retain its name, and the Depaoli family, managers of the operation for the last 30 years, will continue to operate it as a separate business unit under the Megadyne umbrella. A key business in the group is Sampla North America, based in Lackawanna, N.Y.

The acquisition “allows us to further leverage our global footprint and solidifies our goal of becoming the No. 1 global power transmission company,” said Philip Cohenca, president and CEO of Megadyne's North and South American operations that include Fairfield-based Jason Industrial Inc., its U.S. affiliate and manufacturing, sales and distribution arm in the U.S..

The addition of Sampla gives Megadyne a product line that complements and expands its present offerings both in the U.S. and globally, Cohenca said.

He said Cris Balint will remain as general manager of Sampla North America, while Cohenca will continue as CEO of the various Megadyne businesses in North and South America. While no changes are expected, Cohenca added, Megadyne will put in place whatever leveraging it believes makes sense.

Balint sees numerous growth opportunities for Sampla with Megadyne at the helm. “Apart from the benefits of having the financial backing of a much larger international corporation such as Megadyne, there are opportunities to reduce costs through streamlining operations and improved economies of scale.”

He said “better market penetration, a more diversified range of products and services, together with access to new skills and knowledge should provide Sampla and its employees opportunities to grow at a faster pace.”

Megadyne and Sampla already operate in similar markets globally, Balint said. “The acquisition will allow a convergence and strengthening of existing relationships with our customers. We expect to continue double digit growth for our operations in North America for the coming years.”

He said Sampla plans to add to its production capabilities in the future. “Our model will not change. We will continue to sell strictly through distribution and select OEMs.”

Among the immediate benefits of the latest addition, according to Megadyne CEO Giorgio Tadolini, is gaining “a complete range of products perfectly matching our current offerings and the availability of an important distribution network.”

He said it was an important step in implementing the company's mission to strengthen its position as market leaders “by offering, among other things, more and more complete solutions to our customers' requirements.”

Adding Sampla to the Megadyne family complements its previous acquisition of Rultrans Transmisyon A.S., increasing the firm's lightweight conveyor belt range and capacity, Cohenca said.

Rultrans is a Turkey-based conveyor belting manufacturer that produces a wide range of polyurethane and PVC products at its large factory in Izmir, Turkey, with a work force of about 120. Megadyne bought the company in 2013, and it marked the first of three acquisitions the firm has made in the last two years.

In 2014, it purchased Cumming, Ga.-based Belt Corporation of America and Sampla Belting South Africa Ltd. Their management teams and work forces also were retained.

With Sampla North America and Belt Corporation of America in the fold, Megadyne's North American and global operation is growing rapidly. They join Jason Industrial, which offers a range of V-belts, neoprene and urethane synchronous belts along with industrial hose and couplings; Megadyne America, a maker of open ended and endless polyurethane synchronous belting, located in Charlotte, N.C.; and Greenville, S.C.-based Timing Belt Manufacturing Co., a producer of industrial rubber synchronous power transmission belts.

Astorg entered the picture in 2014 when Megadyne was looking to expand further and triple its size. Astorg picked up a majority interest in the group of companies while management of Megadyne and Jason, along with shareholders, reinvested into the business and retained 25 percent ownership. The Cohenca, Tadolini and Cukurel families are minority shareholders with operational responsibilities.

Philip Cohenca said at the time that Astorg gives the belt manufacturer greater access to funding and expertise for future acquisitions.