Expanding Our Capabilities
The acquisition of Southwest Metal Finishing and Inventix Mfg.
Marking the biggest acquisition in its history, Lincoln Industries purchased affiliated Wisconsin-based businesses, Southwest Metal Finishing, Inventix Manufacturing, and Southwest Manufacturas De Mexico.
Southwest Metal Finishing, New Berlin, WI, is a decorative chrome plating and metal finishing company. Inventix Manufacturing, located at Menomonee Falls, WI, produces zinc and aluminum die castings. Southwest Metal Finishing also has facilities in Texas and Mexico. Southwest Manufacturas De Mexico is a world-class polishing and plating operation and together, all facilities acquired, employ over 600 people.
The acquisition comes three years after Lincoln Industries acquired DS Manufacturing located at Pine Island, Minnesota. Despite being the largest and most diverse privately-held finishing company in the US, these acquisitions have significantly broadened Lincoln Industries’ market reach.
“The combination of our companies will drive 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 are important additions to our offerings,” he said.
“These acquisitions are important because there are certain cases where our companies have strong relationships with some of the same customers. At the same time, there are many opportunities where our customer bases do not overlap. Our companies will be completely integrated, creating an opportunity to provide a part, from design to finished product.”
Lincoln Industries Vice President of Strategic Accounts Clint Boothe and Director of Maintenance and Engineering Louis Balogh are leading the transition at Wisconsin.
Boothe is serving as acting general manager and is anxious to see how the newly acquired facilities will impact Lincoln Industries.
“When we put our strategic objectives together last year, one of the most important was to develop supply chains for aluminum and zinc die cast parts,” said Boothe. “We are continually presented with opportunities from new and existing customers for jobs that call for finishing on those substrates and until now, Lincoln Industries had to outsource those services. Understanding that sourcing activity as a top priority, we recognized a great opportunity in acquiring a business that is vertically integrated in casting operations and is a highly regarded plater of those substrates. Overall, it’s a great opportunity for us.”
Boothe is also pleased the acquisition will strengthen Lincoln Industries polishing capabilities.
"Identifying polishing sources that can meet our demand has been a challenge,” he said. “To be successful, we must be competitive in polishing, both nationally and globally. Polishing is demanding work and most sources have a difficult time finding enough people to meet our demand. This acquisition has allowed us to bring on a world-class polishing operation that addresses current needs and positions us well for the future.”
The acquired companies also have strong process synergies with Lincoln Industries.
“There are no redundancies between the capabilities of Lincoln Industries and the companies we acquired,” said Boothe. “We have never had the capability to plate on aluminum and zinc die cast in Lincoln. Our acquired facilities are vertically integrated to cast, polish, and plate aluminum and zinc die cast.”
“Given these additional capabilities, there are not many markets we can’t address,” he said. “There are new opportunities for us in both over-the-road truck and motorsports industries where we already have strong positions. There are certainly other markets we want to explore in the future. The use of either substrates is so wide-spread, there are few customers that wouldn’t have some need.”
“This is going to be a tremendous success," said Boothe. “We are driven to serve our customers and it’s a great feeling knowing that you can meet a whole new set of a customer’s needs.”
Read more stories from Lincoln Industries in our Summer Catalyst.