Business news: Titan acquires Bilt-Rite Conveyors

Company capitalizes on slow economic times to increase market share on East Coast and in retail and packaging conveying markets throughout the U.S.

Lorie King Rogers -- Modern Materials Handling, 1/29/2010

Titan Industries, Inc., a manufacturer of industrial conveyors and conveyor systems headquartered in New London, Wisc., has announced the acquisition of Bilt-Rite Conveyors of Garfield, New Jersey through an asset purchase agreement.

Like Titan, Bilt-Rite has been manufacturing quality durable conveyors covering a broad range of applications for decades.  While much of the product line between the two companies is similar, the acquisition will introduce Bilt-Rite customers to Titan's hinged steel belt line of conveyors and heavy duty conveyors, which are ideal in the materials handling industry for pallet handling applications.  Titan customers will benefit from the depth of experience Bilt-Rite has in packaging and retail markets.

 "This was an ideal opportunity for Titan Conveyors to increase our market share in certain applications where Titan already had a great product, but needed greater access to the market," said Dan Baumbach, Titan's president and CEO.  "This also makes us a key player on the East Coast, an area we had targeted for growth. We assessed where we had strengths and weaknesses regarding market share in the United Sates and determined that the East Coast presented an excellent opportunity."

While that geographic area presents opportunity, Baumbach told Modern that it also presents challenges because there are a lot of older buildings in with unique configurations and the need for customized solutions.  Baumbach said Bilt-Rite has been very strong on the East Coast and successful in meeting customers' individual needs, so Titan looked at this pairing as "a perfect match."

"Nobody likes to source from multiple suppliers if they can source from one," said Baumbach.  "Titan's ability to offer one-stop shopping to customers is much better now."

Modern asked Baumbach about the timing of this move.  "Slower times are when companies should be expanding, making acquisitions, and setting up for the future," he said.  "If the conveyor industry were booming, it might have been more difficult to execute an acquisition.  But now, things are more fairly priced and organizations have the time and means to go through the process of integrating."

The Bilt-Rite headquarters and manufacturing operations have been integrated with the Titan Industries operation in Wisconsin.  Moving forward, the full Bilt-Rite product line will be offered under the Titan brand. To maintain the level of service expected by Bilt-Rite customers on the East Coast, Titan opened a sales office in New Jersey.  

Baumbach looks at the consolidation as a financial benefit passed on to its customers. "Consolidating the two manufacturing operations will boost volume in the existing Titan operation and provide a better value to our customers," Baumbach explained.