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Topics Mergers & Acquisitions United States Industrial Extrusion
Companies & Associations
The Megadyne SpA group of companies is in the process of adding another major component to its growing network.
In a move aimed at building its specialty belting manufacturing and fabrication operations, Jason Industrial Inc. — Megadyne's wholly owned U.S. manufacturing, sales and distribution arm — will purchase Belt Corp. of America from owner Bill Levensalor and his wife Maureen. They are the two prime shareholders in the company, according to Philip Cohenca, CEO and president of Megadyne's North and South American operations, which consists of Jason, Megadyne America and Timing Belt Manufacturing Co.
Financial details were not disclosed, but he said the transaction was to close at the end of August.
Bill Levensalor will remain with the stand-alone business and run the operation. The company's work force of about 60 will be retained and continue to operate out of Belt Corporation's 40,000-sq.-ft. production plant in Cumming, Ga., where the firm is headquartered.
It will become a subsidiary of Fairfield-based Jason, Cohenca said, but will operate on a stand-alone basis, although Jason will look to integrate parts of the operation that fit.
Founded in 1985, Belt Corporation manufactures specialty belting and is a custom belt fabricator. Its product range runs from standard timing belts to flat belts to belts designed for unique applications such as the belt systems in bottle return self-serve stations.
It serves the business machine, industrial drives, banking equipment, printing equipment, product handling equipment, office automation, textile, paper, vending and other industries and has products using polyurethane, polyetherimide and polyester.
“Our global strategy is to have Megadyne/Jason become and be recognized as the world's premier industrial power transmission belt company,” Cohenca said. “To do so, we have committed to putting best in class manufacturing, distribution and fabricating capabilities in each of our major markets: America, Asia and Europe.
“The BCA acquisition is a key part of that initiative for the Americas, bringing specialty belting and fabricating expertise to complement the manufacturing prowess provided by TBMC and Megadyne America and the distribution capabilities provided by the Jason network of nine sales/warehousing operations in North America.”
He said Jason has been pursuing the purchase of Belt Corp., “which has a great name and reputation in the industry,” for a long time, but the Levensalors weren't interested in selling the business. Of late, however, other potential buyers cropped up, Cohenca said, and Belt Corp. seemed more open to an acquisition.
“We've had a great long-term relationship with them,” he said. “Bill has been at it for some time and has put together a great staff and a phenomenal business.” Jason stepped up its efforts and in the end reached agreement with the Cumming belt maker.
Belt Corporation has done the bulk of its business in the U.S. previously, Cohenca said, but with Megadyne and Jason in the picture, it will become more of a global company.
“We don't want to tinker with the success Bill's created; we just want to add to it,” Cohenca said. “They'll take our business to the next level; we'll take their business to the next level.”
Megadyne America, based in Greenville, S.C., manufactures open ended and endless polyurethane synchronous belting while TBMC, also located in Greenville, makes a full range of industrial rubber synchronous power transmission belting. Both of their plants are ISO certified, Cohenca said, “and recognized leaders in their respective areas of production.”
Megadyne SpA, based in Mathi, Italy, develops and manufactures power transmission belts, matched components and belt systems for any kind of machines.
It offers thermoset and thermoplastic polyurethane belts, rubber timing and V-belts, pulleys, clamping plates, timing bars, and other complementary products, including custom made goods.
It also produces special products, such as coatings, cleats and mechanical reworks. In addition to its North American subsidiaries, it has production plants in Europe and Asia. Jason primarily sells and distributes Megadyne, TBMC and Megadyne America products. It has sales and distribution centers spread across the U.S. and in Canada, Mexico, Brazil and Central America.
In addition to its custom made fabrication of products, Belt Corp.'s specialty goods manufacturing expertise includes silicone-coated belts, specialty endless flat belts, woven endless flat belts, European style knitted endless belts, precision timing belts, high performance profile belts and timing belt pulleys.
Together, they form a large power transmission belting operation with the ability to handle everything from design to manufacturing to fabrication to distribution of products, Cohenca said.
All of the companies fall under the Astorg Partners umbrella. Astorg finalized a transaction to purchase a majority stake in the Megadyne group at the end of July. Management of Megadyne and Jason, including Cohenca, has retained a 25 percent interest in the company.