12.20.19 Friday
Transaction Announcement: Sumitomo Machinery Corp. of America Acquires LUFTEX GEARS, Manufacturing & Services. Nation’s Leading Industrial Gearbox Manufacturer Extends Reach into the Southwest with Latest Acquisition
By: P. A. (Andy) Weber III

Chesapeake, VA (Nov. 20, 2019) – Sumitomo Machinery Corp. of America (SMA), one of the nation’s leading industrial gearbox manufacturers, is pleased to announce the acquisition of LUFTEX GEARS, Manufacturing & Services, headquartered in Lufkin, Texas. This represents the first domestic acquisition for Sumitomo Machinery Corp. of America since its creation in 1966.

SMA, also known under the Sumitomo Drive Technologies brand, has expanded significantly in 2019 with the 100,000 square feet addition to their Chesapeake headquarters and the opening of their west coast Product Support facility (Corona, CA). These expansions follow the company’s 2018 opening of their Gearbox (GB) Center of Excellence (Verona, VA) to meet the increased demand for their Paramax and P4 heavy-duty industrial gearboxes. In 2019, SMA’s parent company, Sumitomo Heavy Industries, has also acquired Lafert Group (San Dona di Piave, Italy) and Invertek Drives, Ltd (Welshpool, United Kingdom).

LUFTEX GEARS, Manufacturing & Services offers a full-line of aftermarket repairs and services for all brands of industrial gearboxes. The acquisition of this company will enhance Sumitomo’s gear manufacturing, repair, and service capabilities throughout their regions in the Western Hemisphere. “This is a great brand to bring into the SMA portfolio and offers us increased growth potential in all the markets we serve. The Luftex employees, their devoted work ethic, and their aftermarket expertise, fit nicely with our long termplan. Sumitomo provides brand recognition, a global presence, and the stability needed for long term growth,” quoted James D. Solomon, CEO of SMA. “LUFTEX GEARS, Manufacturing & Services strengthens our connection to the customer after product is shipped. This relationship will provide customers with a great product backed by excellent service and repairs to maximize the life cycle of their investment.”

“This is an exciting opportunity for the LufTex staff, management team and shareholders, Sumitomo will provide our customers and staff a new level of service, benefits and commitment to long term growth. The leadership of Sumitomo shares the same commitment to our customers, staff and community that has been developed within the LufTex operation over the past 4 years”, quoted Rufus Duncan, Jr., LufTex Board Chairman.

The transaction is calendared to close the first week January of 2020.

About Corner Capital

Founded in 2006, Corner Capital provides transactional advisory services to entrepreneurs, operating companies, financial institutions, and professional investors, specifically focused on the Downstream segment of the oil and gas industry.

About Sumitomo Drive Technologies

Sumitomo Drive Technologies is a leading manufacturer of power transmission and control products including
gearmotors and industrial gearboxes. It has been a trusted source of quality products and innovative solutions for a wide variety of applications with leading global brands. For more information about our products and services, please visit our website at us.sumitomodrive.com

For more information, please visit www.cornercapitalpartners.com or contact Carl Ray Polk, Jr.  at [email protected] or (936) 632-9155

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