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November 10, 2017 01:00 AM

Motion Industries acquires Apache

Kyle Brown
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    Kyle Brown, Rubber & Plastics News
    From left, Jill Miller, Apache marketing and communication manager; Gregg Hanson, Apache vice president, sales and marketing; Morten Vejlstrup, ScanBelt owner and CEO; Tom Pientok, Apache president and CEO; and Steve Fournier, Apache director of strategic accounts, gather around Apache's booth at the NIBA/PTDA Summit.

    BIRMINGHAM, Ala.—Motion Industries Inc. has acquired Apache Inc. in a deal that is part of Motion's continuing effort to build its belt business.

    The deal was closed Nov. 1 and terms were not disclosed.

    Moving forward, Apache will go to business as Apache, a division of Motion Industries, according to Tony Cefalu, senior vice president of Motion Industries.

    "The Apache name is a recognized brand," he said. "We certainly wouldn't do away with that right now, and I don't know that we ever will."

    Apache's employees—including President and CEO Tom Pientok, among others—will stay with the purchase, bringing their experience along as part of the agreement.

    "What we're really buying, what we really need are the people. If Tom and his group had said, 'We just want to go,' we wouldn't really have been interested," Cefalu said. "We can buy inventory and buildings. We can buy equipment. But we need the expertise they bring along with it."

    There are currently no plans for consolidations, and Motion is looking to utilize Apache facilities for Motion customers, he said. Apache has seven sales and production locations in the U.S.

    "At the same time, we're still committed to their model of selling through distribution for those who want to continue to deal with Apache," Cefalu said.

    Tony Cefalu

    Cefalu has known Pientok for more than 10 years and Apache, which is headquartered in Cedar Rapids, Iowa, has been a longstanding vendor to Motion, a wholly owned subsidiary of Genuine Parts Co. Though they had talked in passing about an acquisition before, talks got more serious at a recent meeting, Cefalu said.

    The acquisition gives Apache access to greater capabilities for accelerated growth and will ensure that employees will be well-cared for in the future, Pientok said in a statement.

    The agreement continues Motion's belt acquisition trail starting when the company bought D.P. Brown of Detroit, then Epperson and Co. of Tampa, Fla., and Colmar Belting Co. in Boston, as well as others.

    "It just led to our recognition that we like that business, and it fits perfectly with what we do," Cefalu said.

    What the purchase brings to Motion includes experience in sidewalls and guides, along with other value-added products, Cefalu said.

    "Previous to us buying Apache, if we needed a value-added belt with a sidewall, we would buy that on the outside," Cefalu said. "Now we have the capability to do it internally. It also gives us some capabilities on the lightweight side to expand what we currently have."

    For the hose side, it opens up the agricultural market for Motion, as well as a division that makes baler belts for original equipment manufacturers, Cefalu said. The acquisition also opens up the ability for Motion to find new business and opportunities for Apache.

    The two companies will integrate quickly, with Motion leveraging its expense side to tie Apache into agreements such as with freight carriers. But the daily function of the company won't change too much, Cefalu said.

    "I think it's business as usual for Apache," he said. "They're going to continue to service their accounts and market as they always have."

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