HOUSTON—Finzer Roller Inc. has acquired the manufacturing assets of Houston-based American Elastomer Products.
The move helps enhance Finzer's coverage within the Texas marketplace, which CEO John Finzer said was already significant. Financial details were not disclosed.
"We already capture a lot of revenue out of Texas and the addition of AEP is favorable for us because the products they sell are similar to ours," John Finzer said. "We're comfortable with the products and services that they offer and expanding our mass in Texas is certainly beneficial to us and part of our strategic plan.
"I'm proud of the fact that Finzer Roller and our associates have been able to quickly adapt to circumstances," he added. "When we first heard AEP may be in play, we quickly put together a team of people to assess the opportunity and execute on it. I think it separates us from others who maybe don't have similar experience, and it also shows Finzer Roller's commitment to the long term in recognizing that we're going to be a player in this field."
AEP consisted of two divisions—one focused on rubber rollers and the other rubber molding. Finzer purchased the assets used to make rubber-covered rollers. John Finzer said the firm was not able to come to an agreement with AEP's former parent American Packaging and Gasket L.P. for the molding division, which was sold to another firm.
Four people from AEP joined Finzer Roller, while John Finzer said about 15 others were offered opportunities at APG. He added that the capacity from AEP will be relocated into existing Finzer Roller sites, which have the space to absorb the new business. The transfer process was completed in May.
"The first part was to introduce ourselves to American Elastomer Products' customers, and so far I think we've been well-received by them," John Finzer said. "Some of the work in process was relocated to Finzer locations. We've filled those orders and are enjoying new orders from these new customers. We wanted to work hard to show them that we would promptly address their needs."
The move doesn't bring any new products to Finzer Roller, but John Finzer said American Elastomer will further enhance sales opportunities and bring his firm into some new market segments.
"American Elastomer did a considerable amount of work in the oil and gas industry, which is something new to Finzer Roller," he said. "We're kind of putting our toe in the water and seeing if we can locate any opportunities in oil and gas. We know it's quite cyclical, but we're always looking for new opportunities and markets to participate in."
Finzer Roller manufactures rubber and urethane rollers from eight manufacturing locations throughout the U.S., and employs about 200. The firm also has a minority ownership in a California site. It serves the flexible packaging, corrugated wood, steel and printing industries, among others.
"We're pretty proud of the fact that we have coverage over most of the U.S.," John Finzer said. "That makes us a little unique in the roller business. We don't turn much business away. If it's a roller and it's rubber-covered, we're generally capable of producing it."