Belt Power on aggressive growth path with Dunham Rubber, Belting

MARIETTA, Ga.—After establishing a bolt-on presence in the Southeast U.S. and organic growth in the Midwest over the past several years, Belt Power L.L.C. has acquired Greenwood, Ind.-based Dunham Rubber and Belting Corp. for an undisclosed amount.

The acquisition of the 65-employee Dunham Rubber was finalized Dec. 29, according to Belt Power.

"We are excited about the next chapter of our rich legacy, providing our team with expanded opportunities and the ability to increase our capabilities to service our customers by joining forces with Belt Power," said Dunham Rubber President Gary Buchanan.

Dunham brings 40,000 square feet of manufacturing space in Greenwood, as well as 8,000 square feet in Shelbyville, Ind., and 12,000 square feet in Fort Wayne, Ind., into the fold for Belt Power.

Belt Power now has 18 facilities in the U.S.

"Joining forces with the Dunham team brings together two great companies with rich traditions and strong cultures focused on taking care of our employees and delivering world-class service to customers," Belt Power CEO Don Heitmeier told Rubber News. "Our companies share similar business approaches with minimal customer overlap, enabling us to accelerate the expansion of our national growth strategy during a very exciting time in our industry."

Dunham has been in the lightweight belting space for more than five decades, offering a variety of products from its three locations.

The company typically serves the food processing, material handling, building products, pharmaceutical and general industrial markets.

While the branding is expected to transition to Belt Power, the acquired company will look to leverage Belt Power's fabrication and technical sales capabilities.

Dunham products initially will be branded as "Dunham Rubber and Belting, a Belt Power Company."

"Over time it will be transitioned to Belt Power," Heitmeier said.

He added that "the time was right for the two companies to join forces."

"The opportunity to bring our teams together to drive incremental value for our employees and customers (drove the acquisition)," Heitmeier said. "The culture and people matched, and this extends our geographic footprint with minimal overlap."

The acquisition increases Belt Power's product scope with the addition of hydraulic, industrial/sanitary, chemical hose and fittings, fabrication and installation capabilities.

"Dunham has a rich, 56-plus–year history with a strong culture," Heitmeier said. "This vertical expansion gives us expertise in building products, material handling, pharmaceutical and automotive, as well."

Belt Power has maintained an aggressive acquisition stance in the lightweight belting market for the past several years, and its expansion drew the attention of Denver-based Platte River Equity in late August.

Previously owned by Shorehill Capital L.L.C., a Chicago-based private equity firm, Belt Power was acquired by Platte River for an undisclosed amount.

"As the largest independent distributor, Belt Power has the industry knowledge, product line, customized fabrication capabilities, and 24/7 installation services that differentiates itself from its peers," said Platte River Equity's Mark Brown, a managing director. "Platte River was attracted to the opportunity to further scale Belt Power's national presence and is excited to partner with the management team to grow the company's leadership position within the broader industrial automation end markets."

Brown added that Platte River welcomes the Dunham team members to Belt Power.

"We are excited about the possibilities ahead and are committed to honoring several decades of history between both Belt Power and Dunham," Brown said.

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Shorehill had owned the business since 2014, growing Belt Power from three U.S. facilities to 12 during that time.

Belt Power, with a total of about 250 employees now, is a distributor and fabricator of belting and components for lightweight conveyor systems, including conveyor belts, equipment, accessories, rubber hose and gasket products.

The company has a significant presence in the Southeast U.S. after making acquisitions in that region over the past several years.

In addition to Dunham Rubber, acquisitions Belt Power has made in recent years include Accurate Industrial Products L.L.C. of Imperial, Mo., a fabricator and distributor of lightweight belting components; Engineered Components Inc. of Ormond Beach, Fla., a distributor of material handling parts; Rubber Services Corp. of Denver, a distributor and fabricator of conveyor belts; and Regional Supply L.L.C. of Marietta, Ga.

"Belt Power has a balanced approach to growth with new organic locations, as well," Heitmeier said.

Belt Power has plans to open new locations in the coming years in Springdale, Ark., Chicago and Memphis.

"In all of these areas we have identified locations, executed lease agreements and are hiring employees to provide full service fabrication, installation and local plant support," he said.

Heitmeier noted that the bolt-on acquisitions "bring companies together" with a "strong cultural fit that is focused on taking care of our employees."

"They expand our geographic footprint," he said.

In the short term, Belt Power will focus on its domestic footprint to service local, regional and national customer.

Long-term opportunities have Belt Power focused on expanding into Canada, Mexico and South America, Heitmeier said.

"We will expand our product and services scope with capabilities that support conveyance systems, services and solutions," he added.

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