Preti Flaherty closed a deal to transfer a majority of the assets of the
Philips Elmet Division, with its manufacturing facilities in Lewiston, to Mainer
Jack Jensen at 11:59 p.m. on December 31, 2003. The deal for the 220,000 square
foot filament production site was closed at the firm’s Portland office.
When Philips decided that it wanted to sell off some of its component parts
divisions it turned to Jensen, a trusted employee, who in turn looked to Preti
Flaherty to facilitate the deal and its many parties’ objectives. Preti’s lead
attorney for the deal, Bonnie Martinolich, said, “I really enjoyed it, bringing
all the pieces together.” And there was no shortage of pieces to bring
together.
Since the transaction was far more than a simple acquisition, Preti Flaherty
had to draw on many of its attorneys' different areas of expertise to guide
Jensen and Philips to their successful agreement. Michael Sheehan worked on the investor aspect of the
transaction. David Van Slyke contributed his efforts to the related
environmental matters. Deirdre O’Callaghan worked on the necessary permits. Fred Frawley negotiated the intellectual property
challenges of the sale. Geoffrey Cummings assisted with the collective bargaining
agreement and the Teamsters Union, which represents many of the plant’s
employees. Since the firm successfully negotiated a term sheet in the summer of
2003, Preti’s attorneys worked cooperatively to make this deal a reality.
Institutional investors were identified which provided the funds to make
Jack’s plans come to life.
A grateful Jensen said, “To be able to purchase and operate this business is
the opportunity of a lifetime.” Jensen’s new company, of which he will serve as
President as well as majority owner, will be renamed Elmet Technologies, keep
its manufacturing in Lewiston and offer jobs to the 240 employees currently
working at the plant. Philips Elmet has been making tungsten and molybdenum
filaments in Lewiston since 1929. The business has diversified since then, with
its products being used in lights, semiconductors and by the medical
industry.
For the past year Jensen has served as Philips Elmet’s vice president and
chief executive officer as he and Preti Flaherty worked with Philips to transfer
ownership of the Elmet division. Jensen previously worked for the Elmet division
until 1996 when he was promoted to work for Philips in New Jersey.
“An affordable management buyout like this is always satisfying,” said Preti
Flaherty senior partner Severin Beliveau. “That is even more true of Jack’s deal
because it keeps a business that has so long been central to the Lewiston area
in Maine. It’s very rewarding to get a client what he wants when you know one of
his first orders of business is to keep 240 jobs instate.”
Elmet’s former owner will continue to be a major buyer for Elmet Technologies
as a five year supply agreement with Philips Lighting was included in the deal.
Bonnie said that aspect of negotiations was not a hard sell. “The quality of the
products up in Lewiston, they’ve got it down to a science there. Philips will
have a hard time finding anything as good.” Both parties are happy and Preti
Flaherty ensured that its last deal of 2003 was a good one. For the firm this is
certainly a fruitful end to one year and an auspicious beginning for the next.
