Sames Corp.CEO Wants to be Viewed as Tech Firm

Sames Corporation (AMEX:BIN) President, CEO and Director, Arnold Dratt, views his new company as a global, technology company capable of doubling its size in just a few years. Until 1998, Sames was part of Binks Sames, an entity comprised of Binks and the French company Sames, which Binks acquired in 1988. The two parted ways when the Binks standard products business was sold to Illinois Tool Works in 1998.

In October of this year, The Wall Street Transcript (TWST), a financial analysis and reporting firm and a Surface Finishing.com editorial content ally, interviewed Mr. Dratt in October of this year. What follows is an excerpt from the interview in which Mr. Dratt explains his goals and how he would like his company to be viewed.

TWST: What are the key trends or key issues that you feel are out there today that are going to have an impact on you as you look at your strategies and goals?

Mr. Dratt: Sames has a number of dramatic opportunities to grow its business. The company's current business is roughly divided between 70% automotive, and 30% general industry. Our company makes both machines and applicators for automotive paint shops. General industry is a much broader category. There, you have to think of anything that you see in either plastic, wood or metal that has a spray application. Also called general industry are those tier one suppliers to automotive companies. Those markets are giant markets for us in general industry, and we have begun to move very swiftly to capitalize on our ability to sell in those markets. We've opened a sales office and product test center in Germany, we are in the midst of negotiating a distribution agreement with a very large company in the United States to carry our non-automotive general industry products throughout the U.S., and we have reoriented our Japanese operation so that it is solely focused on Sames product. In addition, in the automotive area we are a pioneer in powder coating versus liquid.

TWST: Are there limitations on cash or capital at this point, or points of inflection over the next two to three years that you'll have to address?

Mr. Dratt: No, the French company, which is now the heart of the global company, has historically been very conservative on its balance sheet. We have a capital expenditure plan that will put a demonstration center in our Livonia, Michigan facility, which is both for general industry and automotive. We're also upgrading our test center, and customer center in Grenoble with an additional paint booth and test area. This has nothing to do with our R&D budget, which is a separate item. We don't feel that we have many capital constraints. We have a very fine R&D department. That's what we're known for globally. So as long as we continue to come out with the right product and anticipate the market's needs, we'll be just fine.

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