Design World

  • Home
  • Technologies
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe

PTR Group’s acquisition strategy leading to greater production of parts

By Michelle Froese | July 28, 2023

OEMs depend on their vendors to be a trusted source for the design, tooling, manufacturing and assembly of key product components. However, this typically requires working with multiple vendors based on their specialization in metal or plastic parts and the value-added services they provide from coatings to assemblies.

American Cap Company, a division of PTR Group, manufactures two types of seamless coupling products, connecting pipes together.

Establishing trusted relationships and orchestrating parts needs across multiple vendors takes time, consumes considerable organization resources, and adds costs to OEM production.

The OEM’s expanding demand for supplier support has resulted in manufacturers positioning themselves to be one-stop parts shops offering a menu of complementary parts spanning different materials such as metal and plastic. A consolidated offering can help streamline parts sourcing for OEMs as well as better support them as their product needs evolve.

Pennsylvania-based PTR Group, a contract manufacturer of components and subassemblies, is one such vendor. The company has been strategically acquiring companies offering complementary parts manufacturing differentiated by material and product type to broaden the breadth of their overall parts portfolio.

PTR Group has used a growth strategy known in M&A circles as concentric acquisitions where a company acquires a company in the same or related industry but who do not offer the same products. The company can then realize synergies based on similar technologies, marketing, and distribution channels of the companies they acquire.  Sharing resources and facilities across the companies can lower costs by achieving greater economies of scale which benefits their customers.

But PTR Group has taken the concentric acquisition model one step further. By strategically selecting the companies they acquire, they are able to additionally offer OEMs a range of complementary value-added parts and services that go beyond just manufacturing.  This includes in-house part and tool design, tool build , complex assembly, and testing. This depth of services goes across the different parts and materials they can manufacture enabling the company to provide a broad and deep menu of parts capabilities.

As a result of their acquisition strategy, PTR Group now manufactures a  diverse range of parts including valve protection and compressed gas cylinder components and fittings, API  and proprietary coupling thread protectors, and hydraulic valves, fittings, and manifolds. They also custom manufacture metal components and subassemblies, including molded plastic components.

Can you make this part?
A common question asked by OEMs of their parts manufacturers is, “Can you make this part?” Often behind this question is an OEM’s perception that the parts vendor can only work with one material or provide limited or no value-added services.

Now, rather than losing a bid and causing the OEM to have to find yet another parts vendor, PTR Group is in a better position to fulfill the order need regardless of the parts material or specialized handling needs.

PTR Group’s concentric acquisition strategy has enabled them to meet the needs of Chicago-based Wheatland Tube, a division of Zekelman Industries, the largest independent steel pipe and tube manufacturer in North America.

One of the first companies under the PTR Group banner is American Cap, which is one of the few remaining domestic manufacturers of valve protection devices and cylinder components for the compressed gas industry. The company is known for their cylinder caps, adaptor rings, neck rings, sleeves, lids, collars, shells, heads, foot rings, flanges, and spuds and also designs and manufacturers plastic valve guards.

“We started working with American Cap to ramp up our production of couplings,” said Jeff Kneubehl at Wheatland Tube. “That is what we knew them for.”

“We then asked them if they could also make our steel conduit couplings, said Kneubehl. “The answer we got back was, ‘Yes’. So when they proved they could, we came back again to ask about sourcing API couplings for our oil and gas customers and again the answer was, ‘Yes’. They now also supply larger merchant couplings for our residential water and gas customers.”

In the end, Wheatland was able to source steel couplings designed for three individual markets working with a single vendor. Moreover the company was able to meet the quality standards that each market required.

“There’s no question what they’re doing for us is good,” he adds. “They do everything needed for couplings. Moreover, their specifications, identification, and inspection are way beyond what even we require.”

Through their selective concentric acquisition strategy, the company now has several leading companies under their umbrella, in addition to American Cap providing expertise in components and subassemblies from different materials and finishes.

You Might Also Like


Filed Under: ASSEMBLY
Tagged With: ptrgroup
 

LEARNING CENTER

Design World Learning Center
“dw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for Design Engineering Professionals.
Motor University

Design World Digital Edition

cover

Browse the most current issue of Design World and back issues in an easy to use high quality format. Clip, share and download with the leading design engineering magazine today.

EDABoard the Forum for Electronics

Top global problem solving EE forum covering Microcontrollers, DSP, Networking, Analog and Digital Design, RF, Power Electronics, PCB Routing and much more

EDABoard: Forum for electronics

Sponsored Content

  • Sustainability, Innovation and Safety, Central to Our Approach
  • Why off-highway is the sweet spot for AC electrification technology
  • Looking to 2025: Past Success Guides Future Achievements
  • North American Companies Seek Stronger Ties with Italian OEMs
  • Adapt and Evolve
  • Sustainable Practices for a Sustainable World
View More >>
Engineering Exchange

The Engineering Exchange is a global educational networking community for engineers.

Connect, share, and learn today »

Design World
  • About us
  • Contact
  • Manage your Design World Subscription
  • Subscribe
  • Design World Digital Network
  • Control Engineering
  • Consulting-Specifying Engineer
  • Plant Engineering
  • Engineering White Papers
  • Leap Awards

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Design World

  • Home
  • Technologies
    • ELECTRONICS • ELECTRICAL
    • Fastening • joining
    • FLUID POWER
    • LINEAR MOTION
    • MOTION CONTROL
    • SENSORS
    • TEST & MEASUREMENT
    • Factory automation
    • Warehouse automation
    • DIGITAL TRANSFORMATION
  • Learn
    • Tech Toolboxes
    • Learning center
    • eBooks • Tech Tips
    • Podcasts
    • Videos
    • Webinars • general engineering
    • Webinars • Automated warehousing
    • Voices
  • LEAP Awards
  • 2025 Leadership
    • 2024 Winners
    • 2023 Winners
    • 2022 Winners
    • 2021 Winners
  • Design Guides
  • Resources
    • Subscribe
    • 3D Cad Models
      • PARTsolutions
      • TraceParts
    • Digital Issues
      • Design World
      • EE World
    • Engineering diversity
    • Trends
  • Supplier Listings
  • Advertise
  • Subscribe
We use cookies to personalize content and ads, to provide social media features, and to analyze our traffic. We share information about your use of our site with our social media, advertising, and analytics partners who may combine it with other information you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use this website.OkNoRead more