PINEY FLATS, Tenn.—Finzer Roller Inc. is on the acquisition front again.
The firm has made its second acquisition in a matter of months, acquiring all the roller assets of Rubber Technology Inc.
Finzer Roller CEO John Finzer said the firm will relocate production to its site in Blairsville, Pa., and has retained the sales staff of RTI. Financial details were not disclosed, but Finzer confirmed that his company acquired the equipment, inventory, work in process and some other assets from RTI.
The two firms began negotiating in early July and finalized the agreement in about 75 days.
"They asked if we were interested and we quickly recognized it was a pretty good fit for us," Finzer said. "The primary industry they service is the steel industry, and most of their customers are physically closer to our Pennsylvania location, which specializes in rollers for the steel industry."
The RTI deal comes about two months after Finzer Roller acquired the roller division of Houston-based American Elastomer Products, a deal that strengthened the firm's presence in Texas. AEP consisted of two divisions—one that made rubber-covered rollers and the other that produced molded goods. Finzer Roller was unable to come to an agreement for the molded goods division.
Finzer said AEP will further enhance sales opportunities for Finzer Roller and bring the firm into some new market segments.
As for RTI, Finzer added that in addition to a more strategic geographic location, the company brings RTI's customers several new advantages. Its Blairsville site utilizes modern equipment with an in-house machine shop for core repairs.
Like the RTI business it is inheriting, the Blairsville site currently manufactures urethane and rubber rollers at the plant, which can handle rollers of 66 inches in diameter by 200 inches long, and weights of 10,000 pounds. One unique product Finzer Roller will be gaining is RTI's Core Guard roller, which is designed to provide additional acid protection in steel applications.
Finzer added that the Blairsville site likely will have to expand in the next six to 12 months to accommodate additional business. The building recently has added new offices, new warehouse and upgraded facilities for its employees.
"We have to earn the RTI customer's business," Finzer said. "Our business is very competitive, but I'm confident our Pennsylvania team will do a great job integrating the new sales."
RTI confirmed that it divested the roller operation because it amounted to a small percentage of its total revenues, roughly 6 percent. The firm will utilize its 30,000-sq.-ft. plant for operations from its other businesses.
Employees affected by the transaction have been offered jobs with an RTI sister company or Finzer Roller, with most staying on, RTI said.
"It's always nice in a situation like this when people land on their feet without a loss of jobs," Finzer said.
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.