The acquisition of Industrial Conveyor Belt Distributor, Belterra Corporation in Canada
Marubeni America Corporation
Jan 29, 2007
Marubeni America Corporation (‘’MAC’’) and Marubeni Corporation (“MC” in Japan) announced that they jointly acquired 100% equity ownership of Belterra Corporation (‘’BC’’), one of the largest industrial conveyor belt distributors in Canada.
BC has a total of twelve branches in Canada, including its headquarters in Delta, British Columbia. BC distributes industrial rubber conveyor belts, steel cord belt, and other related rubber materials, serving various industrial sectors from the branch offices. BC enjoys one of the largest sales networks in Canada and maintains top market position in Western Canada. BC provides 24/7 maintenance service to its customers, including dispatch service to the customers’ own sites. BC’s customer-oriented maintenance service has earned it a reputation for being the best in the industry.
MC has established the value-chain network for rubber materials. The network includes upstream, downstream, natural rubber, synthetic rubber, tire, and conveyor-belt distributors. BC will help promote MC’s global rubber businesses in the future. This type of value-add has recently been demonstrated by MC’s recent acquisition of an automobile tire distributor in Thailand.
MAC has been selling conveyor belts for more than 20 years, primarily focusing on the distribution network and finance / lease businesses. MAC anticipates massive population and regional market growth in North America and believes it still offers the largest industrial conveyor belt market, estimated at approximately US$500 million. North America is expected to grow further, due to the consistent demand from the key industries such as natural resources and energy sectors, as well as the distribution businesses driven by population growth. With the acquisition of BC, Marubeni hopes to capture a significant portion of this business.
<Profile of Belterra Corporation>
Headquarters: Delta, British Columbia, Canada
President: Mr. Albert J.A. Lavoie
Number of Employee: 191
Business: Distributor of Industrial conveyor belt, hose, other material, and service
Annual sales: Can$55 Million
Offices: 12 locations in Canada