Compco Industries Acquires Quaker Mfg. Corp.
COLUMBIANA, Ohio – After two weeks of whirlwind negotiations, Compco Industries today announced it has acquired Quaker Mfg. Corp. of Salem.
“I’m ecstatic,” said Rick Fryda, president and CEO of Compco. “It’s a good feeling and this was done in a very short amount of time.”
Quaker employees were informed June 9 that the plant could close as early as June 20, should Quaker’s lender, First National Bank of Pennsylvania, exercise its right to have a court appoint a receiver to handle the assets of the troubled company.
In that time frame, Compco officials met with Quaker employees, its customers, management and the bank in order to shore up the acquisition of the company, Fryda said. The sale concluded June 23.
“We have to thank the customers and bank, they stayed with us and had confidence in us – without the customers this would not have been a deal,” he said.
The terms of the deal were not disclosed.
Fryda said Compco purchased raw materials for the plant and outside services to ensure that there were no interruptions in product flow.
“That was key in maintaining the current customer base,” Fryda said. Quaker will now operate under a new name, Compco Quaker Manufacturing Inc. Fryda says as of now, there will be no immediate changes expected in staffing or employee benefits. The company employs 115.
“One of the biggest hurdles was to make sure all of the employees had health care coverage,” Fryda noted.
First National Bank of Pennsylvania filed a complaint June 16 in U.S. District Court for the Northern District of Ohio, suing Quaker for default on $4.8 million in notes.
According to court documents, the bank said Quaker experienced a net loss of $2.4 million through the first eight months of fiscal year 2017 on revenues of $12 million.
Quaker manufactures tooling used in the automotive, recreational vehicle, and outdoor power markets. The product line will remain the same, Fryda said.
Compco Industries operates its main metals stamping plant in Columbiana, where it produces tank heads for the pressure vessel industry as well as other metal stamped products. Compco also owns QFM in Salem.
Greg Smith, chairman of the board of Compco Industries, said that the board is pleased with the opportunity, and noted that the cultures of both companies made the acquisition attractive.
“A lot of things had to happen to make this work,” Smith said. “The banks, our team, Quaker’s team, customers all needed to stay and all of those things had to happen in order to make this work.”
Smith also praised the cooperation of city and community officials, and U.S. Rep. Bill Johnson, R-6, whose efforts helped the sale along.
“It was an opportunity for all of us to do well and grow a business that shouldn’t die,” Smith said. “We see great potential for growth and we were very encouraged by the professionalism and integrity of the customers,” he said. “That was impressive and attractive to us.”
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