Business Spotlight: A Billion Belts and Counting
Resource from: Springfield Business Journal Likes:203
Sep 02,2015
Carlisle Power Transmission Products/The Carlstar Group
Ownership: American Industrial Partners (acquisition pending by The Timken Co.)
Founded: 1905
Address: 2601 W. Battlefield Road, Springfield, MO 64836
Phone: (417) 881-7440
Web: CarlisleBelts.com
Email: lori.grandanette@carlstargroup.com
Services/Products: Industrial power transmission belts
Annual revenue: $140 million; $93 million locally
Employees: 750; 475 locally
One-billion belts.
It took 56 years for the Carlisle Power Transmission Products plants in Springfield and Fort Scott, Kan., to reach that sales volume. The milestone belt came off the line this summer.
The next billion might arrive more quickly if a multiyear strategic plan comes together under new ownership.
“It’s not about today. It’s about us carrying on this tradition,” says Carlisle President John Vassilaros, who is spearheading a five-year factory game plan as the company gets courted by Ohio-based Timken Co. (NYSE: TKR), a $3 billion manufacturing and distribution business centered on industrial bearings.
Since 2000, the rubber belt plants have bounced between four owners.
Number five will be Timken, which has offered $220 million for the two factories, according to transaction details prepared for investors.
“We’ve gone through several ownership and name changes. Hopefully, it will be our last for a while,” Vassilaros says of the cash and debt Timken deal expected to clear federal regulatory approvals in the third quarter.
The current owner, a middle-market private equity group out of New York, has been on the scene since New Year’s Day 2014. Known for recapitalizing businesses with $100 million-$750 million in revenue, American Industrial Partners bought the Carlisle plants with the intent to invest and sell.
“It was public knowledge they were going to sell it. It sold a lot quicker, 18 months basically,” Vassilaros says. “Timken does not buy to resell; they buy to grow.”
Day in, day out
The belt tradition begins with Dayco Corp., a name recognized by longtime Springfieldians.
For years, Dayco was among the city’s largest manufacturing employers, and there were 600 factory workers in 1999, according to Springfield Business Journal archives.
Dayco hummed along manufacturing belts and hoses for the automotive and industrial sectors until 2001. An acquisition by Carlisle Cos. Inc. (NYSE: CSL) from Mark IV Industries halted auto belt production, and senior managers say the two plants have since produced roughly $140 million a year in belts for outdoor power equipment, industrial distribution, agriculture and power sports markets.
Work by Springfield’s 475 plant employees represents two-thirds of sales, buoyed by a rubber mixing center and component sales.
Using raw materials, Plant Manager Rob Cowan says workers mix 60,000 pounds of rubber each day.
“That’s a lot of cookie dough,” Vassilaros says. “That’s one of our key processes. You talk about any kind of a cook, their ingredients are the key and the mixture and the components are highly controlled. We’ve got recipes for everything.”
On average, the plant churns out 15,900 belts a day, ranging from 18 inches to 900 inches in length.
“We’ve been a lot higher than that in the past, but our focus has moved to larger, higher revenue belts in this facility,” Cowan says, noting the Kansas plants produces standard belts, up to 150 inches, at higher volumes, some 45,000 each day.
The belts are sold under the Carlisle and Ultimax brands, as well as custom names.
“Half of our product isn’t even branded Carlisle. We do a lot of private branding for our customers,” Vassilaros says.
Selling to such customers as Bad Boy Mowers, MTD and Grasshopper, outdoor power equipment represents 40 percent of business.
The industrial distribution side is next, at 30 percent, and there are 500 active customers in Springfield and around the country buying replacement parts for conveyors and pulleys, for instance. Area distribution customers include Bates Sales Co., IBT Inc. and Johnstone Supply.
Five-year strategy
Though Timken’s got a foothold in industrial components, the move is its foray into power transmission belts.
“This acquisition advances our strategic plan, which includes leveraging Timken technology and know-how to grow organically as well as building value through bolt-on acquisitions in bearings and adjacent product and services,” says President and CEO Richard Kyle, in a news release.
For Carlisle senior managers who understand the company’s history, the Timken name represents stability. The aging facility, they say, needs upgrades.
AIP started the process, investing in new rubber mixing machines and nine $100,000 belt wrappers.
“We see that continuing with Timken,” Vassilaros says.
In his strategic plan, Vassilaros and his team have called for 3 percent of sales reinvested in equipment annually.
“Anything in the rubber industry is very capital intensive,” says Kirk Bowman, the plant’s director of research and development. “You’ve got to invest in your assets if you’re vertically integrated like we are.”
Based on Timken’s deep distribution network, the plan projects sales growth at a rate Vassilaros holds close to his vest with anyone outside the company. He joined Carlisle a year ago after a 23-year career with Regal Beloit Corp., and the next page in Vassilaros’ playbook emphasizes customer service with the staff.
“We’ve spent the last 13 months talking about the value we bring,” he says. “We’re not the low price guy out there. We want to use service as another separator.”
One-billion belts.
It took 56 years for the Carlisle Power Transmission Products plants in Springfield and Fort Scott, Kan., to reach that sales volume. The milestone belt came off the line this summer.
The next billion might arrive more quickly if a multiyear strategic plan comes together under new ownership.
“It’s not about today. It’s about us carrying on this tradition,” says Carlisle President John Vassilaros, who is spearheading a five-year factory game plan as the company gets courted by Ohio-based Timken Co. (NYSE: TKR), a $3 billion manufacturing and distribution business centered on industrial bearings.
Since 2000, the rubber belt plants have bounced between four owners.
Number five will be Timken, which has offered $220 million for the two factories, according to transaction details prepared for investors.
“We’ve gone through several ownership and name changes. Hopefully, it will be our last for a while,” Vassilaros says of the cash and debt Timken deal expected to clear federal regulatory approvals in the third quarter.
The current owner, a middle-market private equity group out of New York, has been on the scene since New Year’s Day 2014. Known for recapitalizing businesses with $100 million-$750 million in revenue, American Industrial Partners bought the Carlisle plants with the intent to invest and sell.
“It was public knowledge they were going to sell it. It sold a lot quicker, 18 months basically,” Vassilaros says. “Timken does not buy to resell; they buy to grow.”
Day in, day out
The belt tradition begins with Dayco Corp., a name recognized by longtime Springfieldians.
For years, Dayco was among the city’s largest manufacturing employers, and there were 600 factory workers in 1999, according to Springfield Business Journal archives.
Dayco hummed along manufacturing belts and hoses for the automotive and industrial sectors until 2001. An acquisition by Carlisle Cos. Inc. (NYSE: CSL) from Mark IV Industries halted auto belt production, and senior managers say the two plants have since produced roughly $140 million a year in belts for outdoor power equipment, industrial distribution, agriculture and power sports markets.
Work by Springfield’s 475 plant employees represents two-thirds of sales, buoyed by a rubber mixing center and component sales.
Using raw materials, Plant Manager Rob Cowan says workers mix 60,000 pounds of rubber each day.
“That’s a lot of cookie dough,” Vassilaros says. “That’s one of our key processes. You talk about any kind of a cook, their ingredients are the key and the mixture and the components are highly controlled. We’ve got recipes for everything.”
On average, the plant churns out 15,900 belts a day, ranging from 18 inches to 900 inches in length.
“We’ve been a lot higher than that in the past, but our focus has moved to larger, higher revenue belts in this facility,” Cowan says, noting the Kansas plants produces standard belts, up to 150 inches, at higher volumes, some 45,000 each day.
The belts are sold under the Carlisle and Ultimax brands, as well as custom names.
“Half of our product isn’t even branded Carlisle. We do a lot of private branding for our customers,” Vassilaros says.
Selling to such customers as Bad Boy Mowers, MTD and Grasshopper, outdoor power equipment represents 40 percent of business.
The industrial distribution side is next, at 30 percent, and there are 500 active customers in Springfield and around the country buying replacement parts for conveyors and pulleys, for instance. Area distribution customers include Bates Sales Co., IBT Inc. and Johnstone Supply.
Five-year strategy
Though Timken’s got a foothold in industrial components, the move is its foray into power transmission belts.
“This acquisition advances our strategic plan, which includes leveraging Timken technology and know-how to grow organically as well as building value through bolt-on acquisitions in bearings and adjacent product and services,” says President and CEO Richard Kyle, in a news release.
For Carlisle senior managers who understand the company’s history, the Timken name represents stability. The aging facility, they say, needs upgrades.
AIP started the process, investing in new rubber mixing machines and nine $100,000 belt wrappers.
“We see that continuing with Timken,” Vassilaros says.
In his strategic plan, Vassilaros and his team have called for 3 percent of sales reinvested in equipment annually.
“Anything in the rubber industry is very capital intensive,” says Kirk Bowman, the plant’s director of research and development. “You’ve got to invest in your assets if you’re vertically integrated like we are.”
Based on Timken’s deep distribution network, the plan projects sales growth at a rate Vassilaros holds close to his vest with anyone outside the company. He joined Carlisle a year ago after a 23-year career with Regal Beloit Corp., and the next page in Vassilaros’ playbook emphasizes customer service with the staff.
“We’ve spent the last 13 months talking about the value we bring,” he says. “We’re not the low price guy out there. We want to use service as another separator.”
(Springfield Business Journal)
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1.The news above mentioned with detailed source are from internet.We are trying our best to assure they are accurate ,timely and safe so as to let bearing users and sellers read more related info.However, it doesn't mean we agree with any point of view referred in above contents and we are not responsible for the authenticity. If you want to publish the news,please note the source and you will be legally responsible for the news published.
2.All news edited and translated by us are specially noted the source"CBCC".
3.For investors,please be cautious for all news.We don't bear any damage brought by late and inaccurate news.
4.If the news we published involves copyright of yours,just let us know.
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