GRAND RAPIDS — Although Associated Rack just moved to Grand Rapids in October, the company has already expanded locally with a strategic acquisition.
The Chicago-based Associated Rack Corp., a manufacturer primarily of racks and equipment for the materials coating industry, acquired Globe of Michigan Inc., a Grand Rapids-based metal fabricator and manufacturer of materials handling equipment.
A report in MiBiz about the expansion actually served as a catalyst behind this newest acquisition, said Don Bauer, engineering manager at Associated Rack. After reading about Associated Rack’s expansion into West Michigan, Globe of Michigan President Dennis Velie reached out to the manufacturer to discuss a potential partnership.
“Dennis saw the article in MiBiz and was looking to align with another company to improve his product line,” Bauer said.
Associated Rack and Globe of Michigan finalized the deal over the holidays.
Operations for Globe of Michigan were moved from its facility at 1731 Michigan Street to Associated Rack’s newly acquired plant at 4910 Kraft Avenue SE, near the Gerald Ford International Airport.
While the idea of getting into materials handling equipment was not foreign to Associated Rack, Bauer said the company never had enough experience in the field to effectively expand into that industry.
“We kind of dabbled in materials handling equipment, but we wanted to partner with someone with experience,” Bauer said. “Our goal is to expand our base and get more involved in the materials handling and transport aspect of our business.”
All Globe of Michigan employees will retain their positions with Associated Rack. Velie will also stay on with the company, Bauer said.