Hyde IBS broadens reach with two acquisitions

SOUTHBRIDGE, Mass.—Citing the potential for 15 to 20 percent annual growth, Hyde Industrial Blade Solutions kicked off its acquisition mode efforts recently by acquiring two small manufacturing firms in Massachusetts that will enhance its capabilities in the rubber recycling industry.

Hyde IBS purchased both D&S Manufacturing and PDK Design & Grinding in Auburn, Mass., which reside nearly 15 miles from its Southbridge, Mass., location. Both companies had been owned for decades by Norm Monks, who recently retired.

Terms of the purchase were not disclosed but all 20 employees from the two acquired firms will join the Hyde IBS team, which is a division of Hyde Tools, Inc., said Eric Pfeiffer, Hyde IBS director of sales and marketing.

The acquisitions will bolster Hyde's offerings in the general rubber and plastics industries, but more specifically expands Hyde's specialization in the manufacturing of high-chrome alloy tool steel granulator and shredder and recycling knives. These products are used to break down plastic and rubber materials, he said.

“It was a great fit because their range of shredder knives and recycling blades were not a part of our capabilities and processes, and our industrial blades and knives were not a part of their offerings or expertise,” Pfeiffer said. “There was virtually no overlap in terms of capabilities, yet we can sell the same products to the same group of customers.”

Those customers include rubber recycling firms, tire manufacturers, rubber extruders, automotive parts manufacturers and virtually any company that makes extruded, formed or molded rubber parts, he said.

“We're strong with new tire manufacturer and conveyor belt capabilities, but it's in the recycling end that (the acquired companies) have a strong brand,” Pfeiffer said of the acquisition.

Hyde Group President Rob Scoble said in a statement that all customers in this space will have access to Hyde's “engineering, research and development capabilities, sales force and our already extensive line of blades and knives for these markets.”

That brand strength makes it likely that Hyde IBS will retain the D&S and PDK brand names for the present and is likely to operate the two entities as separate divisions under Hyde's corporate umbrella, possibly as “sub-brands.”

It is possible that the three manufacturing facilities in Massachusetts could be combined down the line, but Pfeiffer said there are no plans for that in the immediate future. The acquired companies each have facilities that range in size from 20,000 to 25,000 square feet.

“It was really a case of where two plus two equals five because it was really addition by addition. We probably offer 95-98 percent of what our customers in these areas need after this deal,” Pfeiffer said.

Adding the 20 employees to the Hyde IBS team was a real key, he said, because of their experience in using the multiple CNC mill centers and other machining that the company previously did not have. “We met with all of our new employees to present to them who we were and what we are all about, and we're fortunate that everyone is coming over,” Pfeiffer said.

PDK Design & Grinding has been a leader in the manufacturing of tungsten carbide rotor knives and bed knives for pelletizing plastic before being converted to a final product. That experience with carbide will be particularly useful to Hyde because it offers long life in tough-to-cut materials. Many rubber applications, as well as a lot of the newer composite materials, are good candidates for carbide blades and knives, Pfeiffer said.

Hyde IBS employs about 250 in Massachusetts and as part of a Canadian plant that makes putty knives and scrapers.

The company is looking for other acquisition possibilities that supplement its existing line of products, Pfeiffer said. However the firm will be “selective” when considering such options moving forward.