Sur-Seal reaches new markets with acquisition, new CEO

CINCINNATI—Sur-Seal is streamlining with some shuffling as the company expands its reach into the southeastern region of the U.S. and increases its value-add for new and existing customers.

With new CEO Dana Waterman at the helm, the custom sealing solutions company has kicked off its latest drive for expansion with the acquisition of Mueller Custom Cut, a Charlotte, N.C.-based gasket manufacturer, and is homing in on what it does best with the sale of some "key assets," the company said.

The Cincinnati-based company—founded in 1965 and owned by Heartwood Partners, a Connecticut-based private equity firm—serves the HVAC, lighting and medical markets with its sealing solutions in thermal management, sealing and containment, and tubing.

It has engineering service centers across the U.S., Mexico and China, and provides engineering and supply chain solutions to more than 200 OEMs.

With the acquisition of Mueller, both companies can expand their engineering capabilities, bringing "cutting edge" solutions to their customer bases, Sur-Seal said.

"We value Mueller's expertise in end markets such as HVAC, aerospace, medical, renewable energy and electronics, and look forward to combining our capabilities for a more comprehensive solutions offering for our customers," Waterman said in a news release.

Larry Faist, Waterman's predecessor and now a member of the Sur-Seal Board of Directors, said in a statement that the company is "excited about the acquisition of Mueller and what these two great companies and cultures can achieve together."

Mueller, founded in 1940, specializes in die-cutting, slitting, laminating and CNC cutting. It is ISO-9001 and AS9100 certified and offers MilSpec and ASTM-certified raw materials. This deal follows Sur-Seal's May 2021 acquisition of Spectex, a Dover, N.H.-based specialty materials converter.

In an email to Rubber News, a company spokeswoman said the Mueller acquisition is a mutually beneficial deal.

"For our Cincinnati- and Dover-based customers, the acquisition has expanded our high production capabilities into the southeast," she said. "We also have access to new equipment, such as water jet cutting. And lastly, we can offer new parts such as stripping and acoustical/insulation foams."

For its new Charlotte-based customers, Sur-Seal can provide high-quality and cost effective molded, extruded or formed parts, she said, as well as additional value-added services like storage, kitting and parts assembly.

"The integration is a true partnership," she said, boasting no layoffs and noting that there have been several promotions at both locations.

"We have a bigger operation with more capabilities that will create many opportunities for both employees and customers."

In a March news release, Mueller Vice President Pete Futia said the North Carolina company was "delighted" by the acquisition due to the companies' shared values of customer service and work culture.

Sur-Seal could not divulge further details on the deal but commended the prior owners of Mueller, Ken and Carl Stober, for the culture they created within the company.

"The Sur-Seal and Mueller teams maintained a friendly relationship for years," Sur-Seal said. "When the time was right, it was clear that the alignment between the capabilities and cultures of the companies would result in something greater.

"We are pleased to be stewards of the business going forward."

As for the sale of "key assets," Sur-Seal said it is exiting the optically clear liquid silicone business.

In late March, Sur-Seal sold some of its optically clear liquid silicone molding equipment, as well as other ancillary equipment like mixers and racks, to global lighting components supplier A.L.P. Lighting Components Inc., based in Niles, Ill.

This move, the company said, helps A.L.P. support its customers with optical molding while allowing Sur-Seal to focus on its growth as a materials converter.

"At our core, we are a materials converter with a deep knowledge and history in die-cutting. Since our founding, we have expanded into other key adjacent services, including helping our customers to source quality molded, extruded and formed parts and other value-added services such as warehousing and kitting," the Sur-Seal spokeswoman said.

"Sur-Seal is going to focus on what we do best—and where we can help our customer the most. The sale of extra assets helps us with that focus."

As Waterman steps into his new role as CEO, he said he looks forward to leading the company "through appropriate acquisitions that are complementary to our existing markets, customers and geographies."

Within the next few years, he said, the company seeks to grow with its current customers by offering them more "value-added engineering, manufacturing and supply chain services.

"In addition to serving our current customers more, Sur-Seal will seek out new customer opportunities, including expanding into new market segments," he continued. "Our enhanced offering and expanded geographic reach through our recent acquisitions (of Mueller and Spectex) better enables the company to serve new OEM customers seeking value-added engineering, access to unique materials and custom-made components."

Waterman brings 20 years of experience serving in CEO roles in industrial, medical, aerospace, packaging, oil and gas, and building products markets, which he says will help him carry Sur-Seal forward.

"I've been the CEO for a number of different companies making engineered materials, serving a very wide set of market applications," Waterman told Rubber News. "That background is extremely helpful to me as we look to grow Sur-Seal and increase our value-add for existing and new customers across a range of different industries."

James Sidwa, a member of the Board of Directors, said the company is "fortunate" to have Waterman lead Sur-Seal "through its next phase of growth."

As for Sur-Seal's growth in new markets, Waterman acknowledged that he expects new challenges. But the company's strengths, he added, make it well-equipped to take them on.

"One of Sur-Seal's key strengths is that we partner with our customers to understand their specific needs and work alongside them to help them grow," Waterman said.

"We don't just provide a component—we provide advanced engineering solutions, deep materials expertise and added services … that simplify the process for our customers."

He said the company works with design engineers throughout the development of new product categories and that the company is "highly successful at working upstream" with its customers.

"We are seeking opportunities to expand our footprint in several ways, such as through new capabilities or materials that will further expand our product offering into new territories so we can more quickly service our customers," Waterman said.

One of these new territories for Sur-Seal, he said, is electric vehicle charging.

And because of the company's recent experience in working alongside customers in the lighting industry, he noted, the company is well-equipped to step into this new sector.

He said Sur-Seal can cross-apply its learnings to help companies engineer new solutions in new spaces—like taking its sealing and thermal management experience in LED lighting and applying it to EV charging.

"We believe that our past experiences help us take solutions into new industries," Waterman said.