The story of Sealeck and the beginning of ARA
ARA celebrated its 25th anniversary on the 1st of May 2026. The acquisition of the Sealeck steel door manufacturing business in Adelaide in May 2001 was the beginning of the ARA Group. At the time of the purchase, Sealeck was a small manufacturing business doing $4 million per year and breaking even. Twenty-five years later, this business unit now did approximately $50 million of business this past financial
year.
The profit generated was one of the best results in the Group in 2026. This business is a microcosm of all that we have accomplished at ARA. The growth has been substantial and has resulted from a combination of organic growth, a few small strategic acquisitions during the past 25 years, new product development and the consolidation of another range of door products from an ARA business in order to improve operations.
A few months after Sealeck was acquired by ARA, a boutique manufacturer of physical security products and systems was acquired. This business was moved from Melbourne and combined with the Sealeck steel door business in Adelaide. The acquired business was very profitable and resulted in making the combined business profitable. These new products brought Sealeck into government work.
In May 2001, we leased only half of the facility in Regency Park, South Australia. When the other tenant vacated the facility in 2004, Sealeck took over the entire 3,600 square metre factory. In 2013, Sealeck incorporated the Monarch range of commercial and industrial doors. This consolidation was fortuitous as much of the volume of steel doors were sold to demountable builders for use in mining camps. In 2013, the mining boom came to a screeching halt. Also in 2013, the offices were refurbished, and the facility became an ARA building with several ARA Adelaide businesses now located at Regency Park.
ARA has been very opportunistic in being willing to purchase businesses out of voluntary administration. In 2016, Sealeck purchased the Woodpend Door Hardware distribution and timber fire door manufacturing and installation business from an administrator. The Sealeck team turned the business around very quickly and it has been a significant contributor to the profits of the Sealeck business.
Throughout the past 25 years, Sealeck continued to develop its steel doors, successfully tested steel fire doors and became a major supplier to modular and transportable switch room manufacturers. Sealeck also developed stainless steel bio containment door systems. Much of the growth of the Sealeck business has been organic during the past 25 years. The most rewarding aspect of the 25 year anniversary is the retention of key staff. When Sealeck was acquired in 2001, there were 28 employees. At the celebration of the 25 year anniversary in May 2026, 8 of those original 28 employees were still with the company. As a recognition of appreciation of this service, each of the 8 employees were gifted shares in ARA Group. There are now 125 employees at the Regency Park factory. We concluded our celebrations with a barbeque for all the staff.
We learned a valuable lesson with the acquisition of Sealeck. We let the manager of the business own a portion of Sealeck at the time of the purchase. The manager remained in place for 11 years, but it was proven that ownership at the subsidiary level does not work. When machinery was purchased, ARA had to pay for everything and loan the business the money. By owning shares at the subsidiary level there was no buy in to assist or cross sell services with other parts of the Group. Ownership at the subsidiary level creates an unhealthy silo. We all have employee ownership at the ARA Group, parent company level.
