Global Fastener News

2013 FIN – Elgin Companies to Remain Separate But Share Sales & Billing

March 18
00:00 2014

July 16, 2013 FIN – After two high-profile company acquisitions this spring, Elgin Fastener Group LLC’s CEO Jeff Liter has a clear goal: “Our strategy is to be the #1 domestic fastener manufacturer in the industrial space.”

The vehicles for reaching the top are both organic growth and more acquisitions, Liter said.
• In March Elgin announced the acquisition of Telefast Industries Inc. and the following month Vegas Fastener Manufacturing.
• In 2011 Elgin had acquired Silo Fasteners and Landreth Fasteners.
• In 2012 Quality Bolt and Northern Wire were added to their group of companies.
• Elgin itself was acquired in August 2011 by the Boston-based private equity firm, Audax Group.  Founded in 1999, Audax specializes in middle market companies.
Audax Group’s acquisition of Elgin made Richard Hagan’s Top Ten Fastener Acquisitions of 2011 list.
In an interview with GlobalFastenerNews.com Liter said Elgin is looking for more North American acquisitions and Vegas is a good example of what Liter is looking for.
“Buy and build” is the goal, he added.
Backed by Audax, Elgin has grown to $125 million in annual sales and Liter hopes to double that by 2015.
The acquired companies will keep their names just as previous companies have.
The acquired companies “have a very good history and reputation. That is important to keep. I want Telefast to be known as Telefast,” Liter told FIN in pointing out the company’s expertise in nuts.
In addition to the company names, he prefers management staff to stay.  “It makes life easier,” Liter acknowledged.
But also those managers have been responsible for building the companies, Liter added.
For example, Telefast was founded in 1986 by Jeff Ferry and Kathleen Ferry. Both were from multi-generation fastener families.
Since Jeff Ferry died suddenly in 2002, Kathleen Ferry has continued to build the company. “Today Telefast has her fingerprints all over it,” Liter said.
“There are numerous $5 million to $20 million companies,” Liter said of possible acquisitions.
• U.S. manufacturers aren’t the only U.S. focus for Elgin Fasteners. Most of the customers are domestic too.  “Our market is 98% North America,” Liter said. “That’s our focus.”
Liter finds customers are asking “more and more specifically for domestic materials too.  We really believe in U.S. manufacturing.”
• What is Elgin selling?  Liter told FIN that Elgin will emphasize the engineering in fasteners rather than treating all fasteners as Class C components. “We need to help customers understand the importance of fasteners,” Liter explained.
“We want to be involved early” in the fastener selection process,” he added.
Liter guesses that the importance of the fastener hasn’t been emphasized enough because traditionally the industry has been so fragmented.
Liter has seen the engineering since acquiring Northern Wire. Though many people may not think of wire forms as “critical applications, they are indeed engineered products,” Liter pointed out.
• Expect Elgin to be active in industry associations. “You owe it to the industry to be in the Industrial Fasteners Institute and the National Fastener Distributors Association,” he said.
The Elgin companies will work together on “combining things that make sense,” Liter said. But each company is different. Web: elginfasteners.com ©2012/2014 Fastener Industry News.
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com

2013 FIN � Elgin Aiming to Be ‘Premier North American Supplier’ With Telefast & Vegas Fastener Acquisitions

April 10, 2013 FIN – Elgin Fastener Group LLC announced it has acquired Vegas Fastener Manufacturing.
Following last week’s announcement of Elgin acquiring Telefast Industries of Ohio, CEO Jeff Liter said Vegas Fastener represents a major advancement in EFG’s goal to become the premier North American supplier of specialty fasteners.”
Founded in 1998, the Las Vegas-based manufacturer operates forging presses, computer-controlled turning centers, vertical CNC mills and CNC bar feeders.  Customers include power generation, marine/naval transportation, oil and gas, diesel engine, food processing, power turbine, water works and general industrial markets.
“The experience and reputation that Vegas Fastener has developed in the production of high quality fasteners from exotic materials, for some of the most demanding applications in our industry, takes us to a new level of supplier recognition in the specialty fastener market,” Liter said.
EFG now totals nine U.S. specialty fastener manufacturers: Ohio Rod Products, Leland Powell Fasteners, Chandler Products, Silo Fasteners, Landreth Fastener, Quality Bolt & Screw, Northern Wire, Telefast Industries, and Vegas Fastener Manufacturing; plus Best Metal Finishing.
EFG is a portfolio company of Audax Group.
Elgin is headquartered at 4 South Park Ave., Suite 203, Box 5, Batesville, IN 47006. Tel: 812 689-8917 Fax 812 689-6635 Web: elginfasteners.com Email: quotes@elginfasteners.com
Vegas Fastener Manufacturing was owned by Richard Lassiter, Ed Cebulko and Jim Foytik, who averaged 30 years in the industry.
Lassiter was founder of Nevada Nut & Bolt – which became Non-Ferrous Bolt & Manufacturing; Cebulko was a partner and Jim Foytik was plant manager. Non-Ferrous Bolt & Manufacturing was bought by SPS Technologies in 1998.
Foytik left Non-Ferrous to start Vegas Fastener Manufacturing in November 1998. Lassiter joined Foytick in 2000 and Cebulko in 2001 as co-owners.
SPS shut the Las Vegas fastener facility in 2000, and Vegas Fastener Manufacturing hired key production and testing staff – including VFM sales manager Kevin Hartman.
In 2003 Vegas Fastener moved into a state-of-the-art, 100,000 sq ft facility, which houses hundreds of machine tools, including 10-ton through 750-ton forging presses; computer-controlled turning centers; vertical CNC mills; and CNC bar feeders.
Richard Hagan of Pinnacle Capital was financial advisor to the Vegas Fastener owners. ©2013 GlobalFastenerNews.com ©2012/2014 Fastener Industry News.
For information on permission to reuse or reprint this article please e-mail: FIN@GlobalFastenerNews.com

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