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June 29, 2020 02:01 PM

Amsted seals deal for Triseal business

Andrew Schunk
Rubber & Plastics News Staff
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    Amstead Seals and Forming Co.

    Triseal offers wheel seals, pinion seals, hub caps, gaskets, hubodometers, axle nuts and other wheel end accessories.

    CHICAGO—Amsted Seals and Forming Co. has added a second subsidiary to its heavy-duty truck aftermarket portfolio, acquiring Triseal Corp., a 26,000-sq.-ft. wheel end accessory business in nearby Hebron, Ill.

    "Amsted Seals and Forming acquired Triseal to accelerate our participation into the commercial vehicle component market by expanding our product portfolio offering, solidifying our supply chain and expanding our customer base," said Michael Carter, Amsted Seals and Forming president. "We are excited about the prospects Triseal brings and have already seen an immediate impact. Triseal is a great addition to our offering."

    Financial details of the transaction were not disclosed by the privately owned companies.

    The transaction comes on the heels of Amsted Seals and Forming's December 2019 acquisition of a Ningbo, China, manufacturing facility from Clark Seals L.L.C., based in Tulsa, Okla.

    The former Triseal will add 13 employees to Amsted's work force, according to Tony Hatton, director of program management at Amsted Seals and Forming. All Triseal employees will remain with Amsted, except former Triseal President Patricia Wales.

    "Triseal was a good fit for AS&F because they had an existing product line and supply base that extended our overall product offering for aftermarket commercial vehicle products and they were looking for a buyer," Hatton said.

    While Amsted Seals and Forming will be the dominant brand, for products such as rubber-impregnated leather seals where Triseal had a significant brand awareness the branding will be Triseal by Amsted Seals and Forming with the colors changing to the Amsted Seals and Forming corporate colors.

    There are plans to upgrade the Hebron facility's existing seal testing capabilities as Amsted looks to consolidate much of its North American distribution to the Hebron location, Hatton said.

    "The Hebron location was attractive in that it is relatively close to our headquarters in Chicago," Hatton said. "The facility has knowledge and capability in the distribution of aftermarket product. We will be consolidating much of our North American distribution to this location."

    As a family-owned aftermarket truck components manufacturer and distributor, Triseal's owners say they have prided themselves on value—of its employees, customers and community. With a product offering that includes wheel seals, pinion seals, hub caps, gaskets, hubodometers, axle nuts and other wheel end accessories, Triseal has enjoyed recognition in the global heavy-duty supply chain, according to Amsted.

    Ray and Patricia Wales purchased the heavy duty seal division from Albert Trostel Packings Ltd. of Lake Geneva, Wis., in May 1985, and since then the corporate offices and manufacturing have been relocated to Hebron, which sits 70 miles north of Chicago and seven miles south of Lake Geneva.

    Triseal by Amsted will continue to be a "significant" private label supplier to many of North America's largest vehicle and component OEMs and aftermarket suppliers on the heavy duty supply chain, Amsted said.

    "Our quality lineup of products is engineered to exceed the performance expectations of on- and off-highway medium and heavy duty vehicle, bus, agricultural, and construction equipment owners," Triseal said.

    The company offers standard and customized products and timely delivery, services that Triseal said distinguishes it in the heavy duty supply chain today.

    "Technical expertise, a strong desire to remain dedicated to our customer's needs" is how Triseal said it creates value in the industry, the company states on its website.

    Amsted Seals and Forming said that with the addition of Triseal's capabilities, the company is "uniquely positioned to serve the aftermarket truck market with a full product offering."

    "The acquisition of Triseal accelerates our wheel seal sales to the aftermarket truck market and expands the breadth of product we offer as well," Carter said.

    And while the coronavirus pandemic has caused some supply chain issues for Amsted Seals and Forming in the commercial automotive and aviation spaces, it has not slowed its progressive outlook for growth.

    "The pandemic has affected our markets as well, as many of our customers were forced to reduce hours and furlough and lay off employees," Hatton said. "These effects were less than in other markets, but the last couple of months have been challenging."

    Amsted Seals and Forming Co.
    In December 2019, Amsted Seals and Forming acquired a 128,000-sq.-ft. facility in Ningbo, China.

    Following China acquisition
    In December 2019, Amsted Seals and Forming acquired a 128,000-sq.-ft. shaft and bearing seal facility in Ningbo from Clark Seals L.L.C.

    Like the Triseal acquisition, this move will allow Amsted a greater share of the global aftermarket truck industry, Amsted said.

    The advanced facility in northeast China—now known as Amsted Seals Ningbo—has the capacity to house 96 presses and produce both large and small seals.

    The facility, located in Zhejiang Province, was built in 2012 under the leadership of Henry Zahn of Clark Seals.

    Besides shaft seals, the plant will produce bearing seals and other sealing products for the rail, heavy duty truck, appliance, automotive, agriculture, construction, and outdoor power and recreation industries, according to Clark.

    Amsted's primary large seal production facility is in Petersburg, Va., for the freight, oil rig and steel mill industries, among others.

    Amsted Seals and Forming said it will use the existing equipment at the Ningbo site and look to purchase more machinery there. Hatton said the company also will look to increase personnel at Ningbo in the coming years.

    About 130 people worked at the Ningbo facility under Clark Seals, including 10 engineers, according to the firm.

    "We are definitely planning on increasing equipment and personnel," Hatton said in December.

    Hatton said Amsted will export to the U.S. from the facility, and that tariffs continue to be an issue.

    "(Amsted is) better positioned to respond to our customers' needs in the most cost-efficient manner," Carter said.

    Amsted Seals and Forming does not own any other Chinese properties, Hatton said, though its parent company Amsted Industries does.

    A 10-year commercial agreement was reached between Amsted and Clark Seals as part of the Ningbo facility negotiations. The agreement will keep Clark as the primary distributor of Amsted Seals Ningbo products in the U.S.

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