Germantown-based
Turn-Key Solutions, an industrial machinery manufacturer specializing in turnkey automation and robotic solutions, has acquired
Banner Welder, another Germantown manufacturer that specializes in automated welding systems. Terms of the deal were not disclosed.
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Scott Etzel[/caption]
The acquisition of Banner Welder expands Turn-Key’s portfolio of services to include automated welding. The company now offers a material handling solution that uses robotic welding.
Both companies are now operating under the Turn-Key Solutions name.
Scott Etzel is the sole owner and president of the company.
Four years ago, Etzel bought out Turn-Key’s other two owners. Since then, he said the company has doubled its sales and completed an 11,000-square-foot addition. Turn-Key’s main facility is located at N117 W19345 Fulton Drive. Banner Welder’s facility is located nearby at N117 W18200.
“That addition was kind of my five-year plan. I thought that would get us through the next few years,” said Etzel. “We were kind of land-locked on the lot. About four months ago, we started to get larger companies that we were dealing with. We were just running out of square footage.”
He began searching for a new building, but without much luck. Through word of mouth, one of Turn-Key’s investors became aware of the fact that Banner Welder’s leadership was looking to sell the company.
“They have the square footage, they have the people… their customer base is different than mine, so there was no overlap,” said Etzel. “It was a perfect opportunity for us.”
The entire acquisition process took less than 45 days, with the deal officially closing on Aug. 3.
Following the acquisition, Turn-Key has grown from 35 employees to 82. Etzel expects the company’s total number of employees to double by the end of the year.
With the acquisition of Banner Welder Turn-Key has also tripled its manufacturing space to 90,000 square feet. That extra square footage will be instrumental in supporting the firm’s ongoing growth, and bolstering sales on the Banner Welder side of the business. Etzel explained Banner Welder had been struggling over the last several years and seen sales “significantly decrease.”
“They weren’t in the best financial position, and we were strong with cash, so it was a great opportunity to purchase a company with 75 years of experience,” he said.
Turn-Key has been capped at around $12 million to $15 million in sales each year due to space constraints. With the added space, Etzel expects the company to reach $25 million to $30 million in annual sales.
“There was work we had to essentially pass on because we were out of space,” he said.
Etzel said he expects to invest in new manufacturing equipment at both facilities in the coming months, but did not disclose a dollar amount.
