Datwyler intends to utilize Bins' distribution network to offer both auto makers in Brazil and existing customers in South America its full range of products, including O-rings and thermoplastic and silicone components.
Bins utilizes a variety of compounds, but mainly those derived from SBR, nitrile rubber, thermoplastic elastomers and silicone. Its sealing products generally are found within automotive braking applications—like lip seals and membranes. Lambrecht said injector seals are the primary product within its aftermarket business.
The Parco deal will strengthen Datwyler's sealing presence on three other fronts. First by significantly expanding its O-ring business, which currently consists of the legacy business acquired in the 2015 takeover of Origom S.p.A. (now Datwyler Sealing Solutions Italy S.p.A.).
"We wanted to increase our O-ring portfolio," Lambrecht said. "The oil and gas industry has faced several drop-downs, the last one in 2015, but now we see a recovery of this industry and believe now is the right time to invest in (this) area. We believe we can benefit from the increasing trend for such products."
Parco makes customized elastomer seals and serves multiple industries throughout the U.S., including oil and gas, aerospace, water filtration, farm, construction and fuel-dispensing. The firm develops its own compounds with its own mixing facility, includes an engineering department, die production and produces its own molds.
The firm posted revenue of $61.5 million in 2017.
On a geographic front, the deal brings four facilities into Datwyler's overall footprint, in Ontario, Calif.; Montgomery, Texas; Dallas; and Gray, La. All 275 employees and management will transfer with the business.
"This company is well positioned in the oil and gas industry," Lambrecht said. "It is a very fast-growing company with good margins. It was very important that we have further opportunities in the future within industrial applications. We've invested mainly in the U.S. for the health care industry, but now we are stepping into new industries and widening our footprint in the U.S."
Datwyler's Sealing Solutions business accounts for about two-thirds of the group's overall revenue at $855.8 million in sales for 2017. It operates 20 manufacturing sites throughout Europe, Asia-Pacific and the Americas with 7,000 employees, including Bins and Parco.
The firm's main industries are medical, automotive and general industrial. On the medical front, Datwyler opened a new 200,000-sq.-ft. facility in April, representing an investment of more than $100 million. Based in Delaware, the site will produce high-quality elastomer components for pharmaceutical containers and injectable drug delivery systems, such as pre-filled syringes.
"Sealing Solutions is key for the success of the Datwyler Group," Lambrecht said. "We have huge opportunities in different markets. That will help us accelerate our profitable growth."