COLDWATER, Ohio—Recycled rubber compounder DRI Rubber has grown rapidly in a short span thanks partially to an acquisition and a plant expansion, along with the addition of more machinery and personnel.
The U.S. division of Netherlands-headquartered De Ruijter International B.V., DRI Rubber recently purchased Linear Rubber Products Inc., better known as LRP Solutions, for an undisclosed amount. LRP Solutions manufactures a wide variety of rubber matting for the agricultural market and other sectors.
DRI Rubber—which has been experiencing strong organic growth, according to Vice President Michael Lindsay—also expanded its present plant in Coldwater in conjunction with the acquisition, although the company did not disclose the size of the production facility or the size of the expansion.
"We will continue to review the need for additional growth (at the facility) based on our organizational growth plan," Lindsay said.
Kenosha, Wis.-based LRP Solutions' factory, personnel and machinery also were part of the deal, but the number of employees and types of machines involved in the transaction were not released.
DRI Rubber has closed the Kenosha facility and consolidated much of the LRP Solutions operation—including production, employees and machinery—at its Coldwater plant, in order "to realize additional efficiencies and synergies," Lindsay said.
Effective Nov. 1, LRP Solutions became a wholly owned subsidiary of DRI Rubber, but will continue to operate under its present name at the Coldwater site.
A global leader in reprocessed rubber compounds and a leading producer and supplier of fiber reinforced rubber compounds, DRI Rubber made some finished goods for the matting market prior to the acquisition, but at a limited volume, he said.
It also had previously been a supplier for many matting markets globally, he added.
Adding LRP Solutions to the DRI Rubber fold has significantly increased the company's presence in the matting sector. "The acquisition was made to enhance and explore further the creation of finished product opportunities," Lindsay said.
With LRP Solutions in the company's organization, DRI Rubber is in the process of restructuring its finished goods decision.
While it specialized in manufacturing agricultural matting for animal comfort, LRP Solutions also made a variety of other rubber mats. The firm's portfolio included the largest molded mats for equine use, durable slot mats with a patent-pending fastening system, and a variety of commercial and industrial products.
Combining LRP Solutions' expertise in the matting field with DRI Rubber's extensive technical knowledge will provide customers with improved product quality and performance, according to DRI Rubber.
DRI Rubber said it plans to integrate its fiber-reinforced technology and FRC materials, while uniting the portfolios from both companies, with LRP Solutions' offerings to offer a wider scope of products for the commercial, industrial and agricultural markets.
It also intends to combine LRP Solutions' brand, website and products with those of DRI Rubber as part of its newly restructured finished goods division.
Effective Nov. 1, LRP Solutions became a wholly owned subsidiary of DRI Rubber, but will continue to operate under its present name
DRI Rubber said it anticipates the transition process will take place over the next several months, but that it will continue to operate in a business-as-usual mode, with customers receiving the same high quality products and service they normally do.
Lindsay said DRI Rubber has had double digit growth of late and he expects that to continue. He noted that the firm has been exploring the possibility of expanding its finished goods manufacturing operation for some time and a number of opportunities continue to present themselves.
The company has seized what it believes is a big opportunity and one that will create further growth for the firm, he said. "I believe that our rubber expertise and the market need for that expertise contribute significantly to that growth."