Kem Krest acquires Telamon business unit
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Elkhart-based supply chain optimization company Kem Krest announced Monday it has acquired the heavy-duty division of Telamon in Carmel. Financial terms of the deal are not being disclosed.
Kem Krest focuses on the service, parts, chemicals and accessories for the automotive, agriculture, power sports and heavy-duty space. The company works with original equipment manufacturers, including General Motors, Ford, Harley Davidson and John Deere.
CEO Amish Shah says the company provides logistics and inventory management services, as well as chemical manufacturing and kitting, packaging and light assembly.
Shah said Telamon’s heavy-duty division fits perfectly into Kem Krest’s efforts to accelerate its services in the transportation and mobility sector.
“They are assembling various components for heavy duty trucks, engine components and other components that go into heavy duty truck,” Shah said. “They are using advanced engineering and methodologies to basically put parts together in an assembly fashion.”
Kem Krest provides a lot of kitting and packaging of the accessory programs for OEMs like Stellantis, Harley Davidson and GM. He said the same work in Telamon’s heavy-duty division was particularly attractive because of the company’s advanced operations.
“It’s a little bit more engineering heavy. They’re using things like PLCs and torque wrenches to ensure exact quality as it relates to assembly of these these various parts,” he said. “So we feel like with their innovation, some of their engineering capabilities, that we can translate that to our current business and also to our current customers.”
The Telamon division has about 100 employees, all of whom will transition to Kem Krest, bringing the company’s total headcount to over 700.
Telamon CEO Stanley Chen said Kem Krest is an ideal partner to acquire the division.
“Not only are no jobs being lost in the transition, but it is a natural extension of Kem Krest’s business,” Chen said in written remarks. “This opportunity allows Telamon to strategically focus on our core competencies. Definitively a win-win for both organizations.”
The operation will continue to operate out of Telamon’s Carmel location, which Shah said presents a great opportunity for his company to enter the central Indiana market. He called the acquisition “truly a growth play” for Kem Krest.
“We believe fully that we can add significant volumes,” he said. “Our reputation in the industry, in the markets that we serve are pretty great. Now that we’re adding this more complex capability, we feel like there’s a tremendous opportunity to grow and expand that that operation.”