Chris Gallagher is the CEO of Gallagher Fluid Seals, Inc., a global distributor and manufacturer of fluid sealing products.

If ever there was a “friendly camp” for a rep firm to call home it proved to be Gallagher Fluid Seals, Inc.

According to Chris Gallagher, CEO of the King of Prussia, Pennsylvania-based company, “When we learned from Dupont, one of the manufacturers that we work with, that the owner of its distributor in New England (IES Technical Sales, Danvers, Massachusetts), was interested in transitioning out of the firm, we opened acquisition conversations with the firm’s owner Mike Berry.”

Gallagher explains, “IES is a segmental distributor for Dupont Kalrez and deals only with targeted customers in the semiconductor and vacuum industries. Based on their successful relationship with IES, DuPont wanted to make sure that the agency landed in a friendly camp; and with Gallagher being an existing Kalrez distributor, that was us. Luckily, Mike was open to a conversation and what we acquired was a hybrid model with IES acting as a distributor with some suppliers, and as a rep with others.”

Over the course of conversations with Berry, Gallagher explains that “While I had heard about the rep component of the IES business, I can’t say I understood the total scope. It wasn’t the cause of our initial attraction to IES, partly because we just didn’t know much about it. However, since our conversations began, I have learned a lot more about that side of IES’ business and I view it as an incredible opportunity. The portfolio of principals has been established very methodically, each one adds a new and niche capability within the semiconductor, thin-film and vacuum markets into which IES sells.”

Rep Component

If Gallagher views the acquisition of IES and its rep component as a positive, he had good reason to be optimistic based on the histories of both companies and the reputations they have built.

IES, the MANA-member rep firm, was founded in Boston in 1947 as Industrial Equipment & Sales Corp., focusing on industrial vacuum products. In the early 1960s, it entered the thin film market, representing Sloan Technology and their line of thermal and e-beam evaporators, plus the original “Dektak” stylus surface profiler. Since then, the company has focused primarily on high-technology products in order to serve the broad array of companies and research facilities in the northeast United States. Upon moving to its current facility in Danvers in 1998, the company changed its name to IES Technical Sales to more closely match its focus on high technology.

IES Technical Sales operates primarily in the northeastern U.S. states of Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont, as well as the Canadian province of Quebec. In addition, it offers related products throughout North America including standard and custom thermal solutions, fluid handling components, and plasma power accessories such as splitters, switches, and specialty cables.

Not quite as old as IES, Gallagher Fluid Seals started as The Walter B. Gallagher Company in 1956. Established as a mechanical packings, gaskets and seals distributor, the first year of the company’s operation generated sales of $48,000.

The company found an initial stronghold supporting the maintenance and repair needs of large manufacturing firms in the Philadelphia area. Accounts like Philadelphia Electric and Rohm & Haas supported the company as it began to grow and find its footing. To handle the rapidly increasing business, the company moved to larger quarters in Conshohocken, Pennsylvania, in 1959. The company was incorporated in 1961. With 20 employees, in 1973 the company surpassed its first $1,000,000 in sales.

By 1975 Walter Gallagher’s sons Walter Jr., Joseph and Brian had joined the business. In 1976 the company moved into a newly constructed 20,000-sq.-ft. warehouse and office facility in King of Prussia.

Expanding Reach

In the next decade Gallagher expanded its sales reach across the entire Eastern seaboard.

The growth of GFS has been both organic and acquisitive. Key acquisitions for GFS include Beemer Precision of Fort Washington, Pennsylvania, in 1995, and Johnson Packings and Industrial Products in 2014.

Tracing its roots back over 75 years, Johnson Packings was one of the largest seal distributors in New England. Johnson Packings, and its 28 employees, was the largest acquisition in the history of Gallagher Fluid Seals and it has elevated the organization to one of the leading sealing distributors in the United States. The gasket fabrication operation, and a strong focus on maintenance and repair operations, has diversified the Gallagher organization within the OEM & MRO markets. Recently, besides the acquisition of IES, Gallagher acquired Quality Seals of Bethel, Connecticut.

Continuing the Gallagher family legacy was an important goal of the company’s founder, Walter B. Gallagher. In 2017 the GFS board elected Christopher Gallagher chief executive officer. In 2021 Gallagher marked its 65th year in business.

Today, Gallagher Fluid Seals, Inc. is a global distributor and manufacturer of fluid sealing products. In addition to operating its own gasket fabrication facility, the company serves both OEM & MRO customers through the development of technical solutions that solve sealing challenges. Gallagher Fluid Seals currently operates two facilities: its headquarters in King of Prussia, Pennsylvania, and its gasket fabrication and sales office in East Longmeadow, Massachusetts.

Gauging Risk

As he considers his company’s acquisition of IES, Chris Gallagher admits that there is obviously a risk involved in this move. “Just recently, I was joking with a member of the board, and we agreed this was either the smartest or the dumbest thing we’ve ever done. We’re a 66-year-old company that has a decades-long history of partnering with suppliers. We’re not historically a rep; we are primarily a distributor that buys and sells products. We also do some manufacturing, but that’s a smaller component of our business. The distribution portion of the business is the dominant piece.

“Reps, on the other hand, work in an entirely different world from what we’ve experienced. Rep contracts with manufacturers are a lot different. If the manufacturer feels you’re not performing, they’ll go direct to the customer pretty quickly. I welcome that challenge and accountability, it’s the same approach we have with our distribution partners.”

Emphasizing that since he and his company were new to the world of reps. Gallagher admits that he certainly had to negotiate a learning curve. “We’ve been consistent with all the principals we represent. I met with all of them, and they were all more than satisfied with the work IES had been doing. We let them know we weren’t going to be sitting back and waiting for leads; we are an industry leader in digital marketing, provide increased marketing horsepower and do a great deal to help them capture more customers in the region. We also have an extensive list of prospects from the Gallagher side to start the first stage of the sales process.

“On the customer side, we let everyone know that we were maintaining the same sales team. And they weren’t going to lose anyone in the process.”

Gallagher explains that he remains enthusiastic and optimistic about the acquisition. He adds that “As I get more involved in operating IES and gain a familiarity of the competitive environment of New England and the Mid-Atlantic states, what excites me about our penetration of the rep world is that I see that there are other companies similar to IES that would be of interest to us.

“I think that the semiconductor and vacuum industry is a fascinating place to be, especially in New England. There are a lot of niche companies out there serving the market well. IES is one of them. I believe this will prove to have been a good investment of time and resources for Gallagher.”

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