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Gallagher

Oct 23, 2023

Gallagher-Kaiser Corp. in Troy, a privately owned turn-key supplier of paint finishing systems, commercial HVAC, and mechanical automotive systems, today announced the acquisition of a majority share in Ventcon Inc., an HVAC sheet metal company in Allen Park.

The deal, terms of which were not disclosed, comes on the heels of Gallagher-Kaiser's acquisition last December of Novi-based Commerce Controls Inc., a leader in providing turnkey solutions for controls systems in automotive, water, wastewater, and other industrial applications throughout North America.

The addition of Ventcon, founded in 1970, will allow Gallagher-Kaiser to add light gauge sheet metal to its HVAC capabilities. Ventcon's existing ownership will continue to remain at the company, and the businesses state the purchase was a strategic move that will benefit both companies.

"It was important to me that the majority owner of Ventcon would be equipped to take what we’ve already built and move it a step further," says Scott Smith, vice president and co-owner on Ventcon. "We felt that joining Gallagher-Kaiser would allow us to scale quickly. Proven by their success with Universal Piping Industries and Kais-AIR, it's clear that with GK's platform, we can grow substantially."

Bob Kaiser, CEO and owner of Gallagher-Kaiser, says the addition of Ventcon provides several advantages.

"We understand the changing landscape of the industry. Schedules are shortening, labor pools are shrinking, while scope is expanding," Kaiser says. "Gallagher-Kaiser has grown to dominate the paint finishing industry and I believe that success can be largely attributed to our unique ability to self-perform and control our own destiny."

Air flow and conditioned air requirements are becoming increasingly critical across multiple processes. For example, in a battery manufacturing space, if the humidity isn't controlled properly, the entire manufacturing process could be jeopardized.

From comfort air to process air, Gallagher-Kaiser now offers the resources and experience to provide complex ventilation solutions across multiple markets.

"Every addition to our enterprise has been to strengthen our vertical integration approach across multiple industries," says Tracy Roberts, president and COO of Gallagher-Kaiser. "By bringing this set of disciplines in-house, we have better control over the entire program and our individual products.

"For example, with a modular Kais-AIR desiccant dehumidification unit, we have UPI (Universal Piping Industries) to pre-pipe, CCI (Commerce Controls Inc.) to add the controls, and Ventcon to fabricate and install the ventilation. Each business unit works together seamlessly."

Robert Kaiser II, a sales and estimating account manager at Gallagher-Kaiser, says Ventcon's capabilities are significant and will allow GK to expand its existing turn-key approach even further.

"More importantly, (Ventcon) will be an essential piece to our future success and growth across different markets," says Kaiser II. "By adding Ventcon we can take our projects a step further. GK and Ventcon will have the capabilities and proficiencies to design sustainable solutions that meet complex humidification control requirements in spaces like paint shops, battery manufacturing plants ,and mission critical data centers."

The investment adds Ventcon's 55,000-square-foot operations in Allen Park and an 80,000 square foot production facility in Jackson, Tenn., to Gallagher-Kaiser. Today, the GK enterprise maintains more than 1 million square feet of dedicated fabrication and modular assembly space.

"With this recent acquisition, Gallagher-Kaiser is now the single largest sheet metal corporation in North America," Roberts says. "We look forward to Ventcon joining the GK family."

Founded in 1952, Gallagher-Kaiser operates its headquarters in Troy, and has manufacturing facilities in Detroit and Holly, Mich., Jackson, Tenn., and Georgetown, Ky., as well as offices in Monterrey, Mexico and Ontario, Canada.

GK states it has grown to become the world's top paint finishing supplier. Kais-AIR is a division of Gallagher-Kaiser. Universal Piping Industries, Commerce Controls Inc., and Ventcon are subsidiaries of Gallagher-Kaiser.

For more information about Gallagher-Kaiser, visit gkcorp.com.