Rubber & Plastics News staff
Greensboro, North Carolina -- The culmination of a six-month process by CGR Products to acquire EG Gasket & Supply is a perfect fit for both sides, according to executives from the two companies. The ownership change, completed 31 Oct, will increase CGR Products' revenue by nearly $8 million to about $29 million during the next fiscal year, according to CGR Products President Chuck Keeley.
The Greensboro, North Carolina-based manufacturer and fabricator of a wide range of flexible parts also added nearly 30 employees to its business from EG Gasket, located in Waukesha, Wisconsin.
Financial details of the purchase weren't disclosed.
EG Gasket's plant will remain open. Besides a factory in Greensboro, CGR Products operates a facility in Decatur, Alabama.
"We kept every single employee except for (owner) Doug Ginter, who is retired by his own wishes and spending more time with his family," Keeley said. "It's a wonderful deal for both companies."
The combined company will employ more than 110 in three states, expanding the capabilities of CGR Products to meet the demands of customers who require precision products and quick turnaround times.
CGR Products makes a wide variety of products using rubber, polyurethane, cork, metal, fibre and other materials, for riding mowers, compressors, small engines, automobiles and other applications.
The company decided 3 years ago to grow not only organically but by possible acquisition. The timing was right financially for CGR Products, but many candidates for purchase didn't want to sell until their bottom-line results improved. CGR decided its targets should be companies in the Southwest and the Midwest, Keeley said. Eventually the manufacturer began working more closely with a group in Milwaukee that introduced EG Gasket as a possible target.
CGR Products isn't finished looking for new partners, Keeley said. The company was close to acquiring two other companies during a recent two-month period, and meetings are in the works to consider other acquisition possibilities.
"The timing is good for us, and we have been fortunate to have a great partnership with our bank for funding," he said. "It's something we will continue to consider and make decisions based on sound, strategic reasoning."
The full version of this story appears in our sister publication, Rubber & Plastics News.