New Owners Take Control of Drake Manufacturing
WARREN, Ohio – A U.S. District Court has approved the sale of Drake Manufacturing Inc. to Drake Manufacturing Acquisition LLC, a subsidiary of CM North America Inc.
Acquisition price was $2.1 million, according to papers filed with the U.S. District Court for the Northern District of Ohio.
U.S. District Judge Patricia Gaughan approved the sale Aug. 8.
A ribbon cutting sponsored by the Youngstown Warren Regional Chamber is scheduled for today at Drake’s plant at 4371 N. Leavitt Road NW in Champion Township.
Earlier this year, First National Bank of Pennsylvania filed a complaint in U.S. District Court alleging that the company defaulted on a $6 million credit agreement and asked the court to appoint a receiver to manage or sell the assets of Drake Manufacturing. In April, the court appointed Compass Advisory Partners LLC of Pittsburgh as the receiver.
Under the agreement, the receiver is to pay First National Bank $1.935 million from proceeds of the sale. The remaining funds will be held back to cover final payroll, payroll withholding taxes and related expenses.
Drake will continue operations at the Warren plant , 4371 N. Leavitt Road, and recall all employees placed on layoff, according to a news release the chamber issued. CW North America will also continue to invest in automation and plant modernization.
The company, founded by John Drake in 1972, is a global designer and manufacturer of precision CNC production systems and has developed a strategic partnership with CW Bearing Group, a subsidiary of CW North America, the chamber said.
John Lirong Hu, president and CEO of CW Bearing and sole owner of CW North America, will serve as president of Drake. Jeff Byerlein, chief engineer of CW Bearing, will act as interim general manager.
StigMowatt-Larssen, who has been with Drake over 30 years, will remain chief technology officer, and Michael Hughes will continue to serve as chief applications engineer.
Copyright 2023 The Business Journal, Youngstown, Ohio.