2018 | A Year of Acquisitions
2018 can be called a year of acquisitions for Lincoln Industries.
In May, the company purchased affiliated Wisconsin-based businesses: Southwest Metal Finishing, Inventix Manufacturing, and Southwest Manufacturas De Mexico. Southwest Metal Finishing, New Berlin, Wisconsin was a decorative chrome plating and metal finishing company focused on zinc and aluminum dies cast finishing, Inventix Manufacturing, located in Menomonee Falls, Wisconsin produced zinc and aluminum die castings. Southwest Metal Finishing also had facilities in Texas and Mexico. Southwest Manufacturas De Mexico being a world-class polishing and plating operation.
And in September, they acquired a longtime Lincoln, Nebraska business, SourceOne which provides industrial customers with a wide range of services including custom manufacturing, design services and tooling, powder coating, and specialty machine build services.
Together, all of Lincoln Industries locations employ over 1,400 people.
“The combination of our companies is driving substantial technological and operational synergies,” said CEO and Chairman Marc LeBaron. “While we provide more than 40 finishing processes and significant manufacturing capabilities, the addition of zinc and aluminum die casting and related metal finishing processes in Wisconsin and new business around powder-coating, manufacturing, and automotive machine design and builds,” he said. “Our expanding capabilities will fuel growth for the company for the next decade.”
Lincoln Industries locations have shared some of the same customers, but there is now added opportunities where the customer bases didn’t overlap. With all locations completely integrated, several opportunities to provide a part, from design to the finished product await.
Lincoln Industries Vice President of Strategic Accounts Clint Boothe has recognized a significant impact with 2018’s acquisitions.
“We have had interest from customers wanting to explore finishing aluminum and/or zinc die cast in the past, but we were apprehensive about offering finishing only. The quality of the cast material is extremely important to overall success,” says Boothe. “The Southwest Manufacturing acquisition presented an opportunity to get the casting operation and the polishing and plating. Being able to control the supply chain of casting and plating has put us in the best situation to be a Tier 1 supplier.”
Additionally, Boothe is pleased with the improvements to Lincoln Industries polishing capabilities. “Identifying polishing sources has been a challenge,” he said. “To be successful, we must be competitive in polishing, locally and nationally. We now have a world-class polishing operation that addresses current needs and positions us well for future growth.”
With growth at the forefront of their minds, Lincoln Industries has begun implementation of three capital projects between their Wisconsin and Mexico locations. The first project was aimed at renovating a plating line that had previously been shut down in New Berlin, Wisconsin. “This project can be seen as an investment that has made huge impacts,” says Boothe. “Having this plating line operational will allow us the capacity to double the business with two of our top customers.”
The remaining two projects will take place in 2019 at Lincoln Industries’ Mexico location. One is focused on the expansion of steel polishing capabilities, while the other will be the implementation of plating on aluminum substrates. Both projects will help Lincoln Industries grow to a competitive advantage, increase capacity for more projects in Wisconsin, and allow the opportunity for additional jobs.
“These three projects together open up capacity in Mexico and Wisconsin that will give us the capability to grow 50% without investing significant additional capital,” said Boothe.