Altra Industrial Motion Corp. operates as a global designer, producer, and marketer of a wide range of electromechanical power transmission motion control (PTMC) products.
The company’s technologies are used in various motion related applications and across a wide variety of high-volume manufacturing and non-manufacturing processes.
The company serves a diversified group of customers consisted of over 1,000 direct original equipment manufacturers (OEMs), including General Electric, Honeywell I...
Altra Industrial Motion Corp. operates as a global designer, producer, and marketer of a wide range of electromechanical power transmission motion control (PTMC) products.
The company’s technologies are used in various motion related applications and across a wide variety of high-volume manufacturing and non-manufacturing processes.
The company serves a diversified group of customers consisted of over 1,000 direct original equipment manufacturers (OEMs), including General Electric, Honeywell International and Siemens; and also benefits from established, long-term relationships with leading industrial distributors, including Applied Industrial Technologies, Grainger, and Motion Industries. Many of its customers operate globally across a large number of industries, ranging from transportation, turf and agriculture, energy and mining to factory automation, medical and robotics.
In 2021, the company acquired all of the issued and outstanding equity interests of Nook Industries, LLC (Nook), a leader in the U.S. engineered linear motion industry. The acquisition expands the company’s portfolio of linear product offerings.
Business Segments
The company operates through two business segments, Power Transmission Technologies (PTT) and Automation & Specialty (A&S).
PTT segment
This segment includes the following key product offerings:
Couplings, Clutches and Brakes
Couplings are the interfaces, which enable power to be transmitted from one shaft to another. The company’s various coupling products include gear couplings, high performance diaphragm and disc couplings, elastomeric couplings, and miniature and precision couplings, as well as universal joints, mill spindles and shaft locking devices. These products are used in conveyor, energy, marine, medical, metals, mining, and other industrial machinery applications.
The company’s key brands, which provide couplings, include Ameridrives, Bibby, Guardian, Huco, Lamiflex, Stromag and TB Wood’s. Clutches are devices, which use mechanical, hydraulic, pneumatic, or friction connections to facilitate the engagement or disengagement of at least two rotating parts. These products are used in aerospace and defense, conveyor, energy, mining, and other industrial machinery applications. Brakes are a combination of interacting parts that work to slow or stop moving machine parts. These products are used in heavy-duty industrial, mining, metals, and energy applications. The company’s key brands, which provide clutches and brakes, include Industrial Clutch, Formsprag, Stieber, Stromag, Svendborg, Twiflex and Wichita.
Electromagnetic Clutches and Brakes
Electromagnetic clutches and brakes use electromagnetic friction connections to slow, stop, engage, or disengage equipment. These products are used in baggage handling, elevator, forklift, material handling, medical, lawn mower, mobile off-highway and other niche applications. The company’s key brands, which provide electromagnetic clutches and brakes, include Inertia Dynamics, Matrix, Stromag and Warner Electric.
Gearing
Gears reduce the output speed and increase the torque of an electric motor or engine to the level required to drive a particular piece of equipment. These products are used in various industrial, material handling, mixing, transportation, food processing and other specialty niche applications. The company’s key brands, which provide gears, include Bauer Gear Motor, Boston Gear, Delroyd, and Nuttall.
A&S segment
The company’s Automation & Specialty segment consists of four key brands:
Kollmorgen
Provides rotary precision motion solutions, including servo motors, stepper motors, high performance electronic drives and motion controllers and related software, and precision linear actuators. These products are used in advanced material handling, aerospace and defense, factory automation, medical, packaging, printing, semiconductor, robotic and other applications.
Portescap
Provides high-efficiency miniature motors and motion control products, including brush and brushless DC motors, can stack motors and disc magnet motors. These products are used in medical, industrial power tool and general industrial equipment applications.
Thomson
Provides systems that enable and support the transition of rotary motion to linear motion. Products include linear bearings, guides, glides, lead and ball screws, industrial linear actuators, resolvers and inductors. These products are used in factory automation, medical, mobile off-highway, material handling, food processing and other niche applications. The company’s key brands providing linear systems include Thomson and Nook.
Jacobs Vehicle Systems (JVS)
Provides renowned ‘Jake Brake’ diesel engine braking systems and valve actuation mechanisms for the commercial vehicle market, including compression release, bleeder and exhaust brakes. These products are primarily used in heavy duty Class 8 truck engine applications. In February 2022, the company entered into an agreement with Cummins Inc. to divest all of its issued and outstanding equity interest in the entities, which collectively constitute the company’s Jacobs Vehicle Systems business.
Sales and Marketing
The company sells its products in over 100 countries to over 1,000 direct OEM customers and over 3,000 distributor outlets. The company offers its products through its direct sales force consisted of approximately 450 company-employed sales engineers, as well as a relatively small number of independent sales representatives. Its worldwide sales and distribution presence enables it to provide timely and responsive technical support and service to the company’s customers, many of which operate globally, and to capitalize on growth opportunities in both developed and emerging markets around the world.
Distribution
The company’s products are either incorporated into end products sold by OEMs or sold through industrial distributors as aftermarket products to end users and smaller OEMs. It operates a geographically diversified business. For the year ended December 31, 2021, the company derived approximately 51% of its net sales from customers in North America, 29% from customers in Europe, and 20% from customers in Asia and the rest of the world. Its global customer base is served by an extensive global sales network consisted of its sales engineers, as well as the company’s network of over 3,000 distributor outlets.
Business Strategy
The company’s business strategy is to capitalize on the Altra Business System to drive margin expansion and organic growth; collaborate with customers to create new opportunities; leverage global business presence and shared services; focus on key niche end markets to increase organic growth; and leverage core competencies.
Intellectual Property
Some of the company’s registered and unregistered trademarks include Ameridrives, Bibby Transmissions, Bauer Gear Motor, Boston Gear, Delevan, Delroyd, Deltran, Formsprag, Huco Dynatork, Inertia Dynamics, Guardian Couplings, Industrial Clutch, Jacobs Vehicle Systems, Jake Brake, Kilian, Kollmorgen, Marland, Matrix, Nook, Nuttall Gear, Portescap, PowerFlex, Stieber, Stromag, Svendborg Brakes, TB Wood’s, Thomson, Twiflex, Warner Electric, and Wichita Clutch.
Seasonality
General economic conditions impact the company’s business and financial results, and certain of the company’s businesses experience seasonal and other trends related to the industries and end markets that they serve. For example, sales to OEMs are often stronger immediately preceding and following the launch of new products. In addition, the company experiences seasonality in its turf and garden business. As the company’s large OEM customers prepare for the spring season, the company’s shipments generally start increasing in December, peak in February and March, and begin to decline in April and May. This allows the company’s customers to have inventory in place for the peak consumer purchasing periods for turf and garden products. The June-through-November period is typically the low season for the company and its customers in the turf and garden market.
Regulatory Matters
The company is required to comply with various U.S. export/import control and economic sanctions laws, including:
The International Traffic in Arms Regulations administered by the U.S. Department of State, Directorate of Defense Trade Controls, which, among other things, impose license requirements on the export from the United States of defense articles and defense services (which are items specifically designed or adapted for a military application and/or listed on the United States Munitions List).
The Export Administration Regulations administered by the U.S. Department of Commerce, Bureau of Industry and Security, which, among other things, impose licensing requirements on the export or reexport of certain dual-use goods, technology and software (which are items that potentially have both commercial and military applications).
The regulations administered by the U.S. Department of Treasury, Office of Foreign Assets Control, which implement economic sanctions imposed against designated countries, governments and persons based on the United States foreign policy and national security considerations.
The import regulatory activities of the U.S. Customs and Border Protection.
International Operations
The company’s products are available worldwide, and its principal markets outside the United States are in Europe and Asia. Most of its sales in non-U.S. markets are made by the company’s subsidiaries located outside the United States, though it also sells directly from the United States into non-U.S. markets through various representatives and distributors, and in some cases, directly. In countries with low sales volumes, the company generally sells through representatives and distributors.
History
The company was incorporated in 2004 in the state of Delaware. It was formerly known as Altra Holdings, Inc. and changed its name to Altra Industrial Motion Corp. in 2013.
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