ALSIP, Ill. — On Tuesday, America Recycles Day, FutureMark Paper Company rolled out the first high-recycled premium coated paper produced in North America especially for textbooks, cookbooks, children’s books and other picture books requiring premium print fidelity. Scholastic, an innovative children’s publishing, education and media company, is among the environmentally progressive... More.

ALSIP, Ill. — On Tuesday, America Recycles Day, FutureMark Paper Company rolled out the first high-recycled premium coated paper produced in North America especially for textbooks, cookbooks, children’s books and other picture books requiring premium print fidelity. Scholastic, an innovative children’s publishing, education and media company, is among the environmentally progressive companies using Future Book paper—the first paper of its kind made predominantly of recycled fiber from an American producer.

“Pioneering customers such as Scholastic drove FutureMark Paper to develop this breakthrough recycled book paper,” said FutureMark President and CEO Steve Silver . “They saw the high quality and recycled content of our magazine and catalog papers and pushed us to apply our expertise to a premium product they could use in books, a market that previously had no practical, high-recycled options. Now, with Future Book coated paper, we’re providing a 90-percent recycled paper that’s wholly competitive in quality and cost to conventional, non-recycled book paper.”

 

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MERGERS & ACQUISITIONS JOURNAL Watermill Group details how it became the successful owner of North America’s only producer of recycled coated mechanical paper By STEVEN KAROL, Watermill Group M&A professionals often tout the importance of strategy in turning around or growing a business. But the effects of strategy are notoriously hard to isolate, as... More.

MERGERS & ACQUISITIONS JOURNAL

Watermill Group details how it became the successful owner of North America’s only producer of recycled coated mechanical paper

By STEVEN KAROL, Watermill Group

M&A professionals often tout the importance of strategy in turning around or growing a business. But the effects of strategy are notoriously hard to isolate, as it rarely operates alone. A recent turnaround engineered by Watermill Group, however, provides a rare opportunity to examine the power that the right business strategy can have on a distressed company.

In November 2009, Watermill acquired Madison Paper Co.’s mill in Alsip, Illinois, near Chicago. By most traditional measures, the Alsip paper mill did not look like a sound investment.

Another prospective buyer had already walked away, and the Alsip mill’s European owner, Myllykoski Corp., was keen to divest the plant and close a deal. We acquired the plant for favorable terms – below liquidation value, in fact. Watermill became the owner of North America’s only producer of recycled coated mechanical paper, the type commonly used in catalogs, magazines and advertising inserts.

Watermill believed Madison’s recycled product differentiation could be parlayed into profitability. After all, Fortune 500 companies were going green, adopting corporate social responsibility (CSR) programs mandating the use of environmentally sustainable materials. Despite the paper industry’s general decline, we saw opportunity in the broader societal movement toward green products and companies. Environmental stewardship would anchor our turnaround strategy.

We installed a new CEO who understood our environmental sustainability strategy. In fact, he had recently completed a successful turnaround at a major commercial office furniture company, where green positioning had played a key role. We also gave the paper company a new name and brand identity to help it get a new start. Thus, FutureMark Paper Co. was born. Its mission: to transform recycled coated paper into a valued green product in what was otherwise a commodity market.

Many paper industry veterans said achieving this goal would be impossible. Our initial customer research told us the same thing. During the due diligence phase, we had studied perceptions of recycled paper among the mill’s existing ecosystem of brokers, printers and other paper specifiers. We learned that traditional buyers generally chose paper based on price. The environmental characteristics of the paper mattered very little. Furthermore, many buyers held onto decades-old beliefs that recycled paper is a second-class product that could never compare in quality to “virgin” paper made from trees.

These findings seemed damning. But because they seemed to contradict the larger green and corporate social responsibility trends we observed, we dug deeper. Would paper selection criteria be different if other parts of the customer organization were involved in the purchase decision? Were people’s opinions of recycled paper based on current realities or on recycled products they may have tried 10 years ago?

To learn more, we talked to decision makers who represented our optimal “green” customers. We discovered that business executives valued recycled paper far more than their procurement departments or production staff. The same CEOs mandating that new offices should meet the LEED environmental standards were also pushing environmental goals throughout their companies. Magazine publishers and editors, as well as marketing executives at national retailers, favored using greener paper to help burnish their brands among advertisers and consumers. Furthermore, business leaders favored recycled paper over other environmental paper options because their customers readily understood “recycled” to mean “green.”

We helped FutureMark Paper revamp its sales and marketing efforts accordingly. The new CEO met with top customers to educate them on the environmental and reputation benefits of using the company’s recycled paper. Salespeople called on corporate customers known to have strong sustainability policies. Marketing programs created pull-through demand from end customers by targeting sustainability executives, publishers, editors and advertising directors. And we formed unexpected alliances, reaching out to traditional paper brokers to talk to them about how selling FutureMark paper could set their own brands apart.

By the end of its first year, FutureMark Paper had gained 50 new major accounts with companies known for their sustainability, including American Airlines, DIRECTV, HomeDepot, Staples, Wal-Mart, Macy’s and Whole Foods Market. FutureMark Paper went from selling week-to-week in the transactional spot market to filling its production schedule with months of advance orders – mostly from loyal customers who value the environmental benefits of its recycled paper.

The importance of this shift cannot be overstated. FutureMark’s new customers are willing to buy on a pre-order or contractual basis to get preferential access to the recycled paper they value. Their advance bookings minimize the need to sell excess inventory on the spot market, which is brutally price-driven. As a result, FutureMark Paper achieves average selling prices 2% to 5% above the industry’s reported average – a result of raising customer loyalty,not raising customer prices.

FutureMark’s green business strategy also proved to be rewarding on the operations side. All capex and R&D decisions were scrutinized through the lens of environmental sustainability. Programs that advanced the company’s efficiency and environmental stewardship became priorities. As a result, FutureMark Paper became the first North American paper manufacturer to use an innovative cornstarch-based “biolatex” in its commercial production process. The biolatex displaced petroleum-based chemical binders, reducing carbon emissions equal to taking 8,000 cars off the road each year. In addition to lowering the environmental impact of its supply chain, FutureMark Paper’s switch to biolatex resulted in cost savings of nearly $1 million per year.

The management, marketing and operational changes Watermill implemented for FutureMark Paper were entirely strategy-driven. All major programs aligned behind our green business plan. The environmental focus not only brought discipline to decision-making, but it also attracted a top tier management team and accelerated the changes needed to achieve the turnaround. The mill is now consistently operating at full capacity, and a year-on-year comparison of our first quarter of ownership with our most recent quarter shows a revenue gain of nearly 40 percent.

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Carpenter Technology Corporation (NYSE: CRS) and Latrobe Specialty Metals, Inc. today announced they have entered into a definitive merger agreement whereby Carpenter will acquire Latrobe in a transaction valued at approximately $558 million. In the transaction, 8.1 million shares of Carpenter stock, subject to certain adjustments for working capital and pension, representing a current equity value... More.

Carpenter Technology Corporation (NYSE: CRS) and Latrobe Specialty Metals, Inc. today announced they have entered into a definitive merger agreement whereby Carpenter will acquire Latrobe in a transaction valued at approximately $558 million. In the transaction, 8.1 million shares of Carpenter stock, subject to certain adjustments for working capital and pension, representing a current equity value of approximately $388 million, will be issued to the current owners including Hicks Equity Partners and The Watermill Group. Carpenter will also pay $170 million in cash to eliminate Latrobe debt at closing and reimburse certain transaction costs.

cquired by Hicks Equity Partners and The Watermill Group in December 2006, Latrobe manufactures and distributes high-performance materials for aerospace, defense, energy, and other significant applications with manufacturing operations in Pennsylvania, Ohio, Texas, and the United Kingdom and seven distribution centers located throughout the United States. Annual revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) for the twelve months ending March 31, 2011 were $379 million and $58 million respectively.

“Our strategy is to grow through a combination of organic growth initiatives and acquisitions - with a focus on markets that value the technical sophistication of our products," said William A. Wulfsohn, President and Chief Executive Officer of Carpenter Technology. "The Latrobe acquisition will provide needed capacity to meet strong customer demand for our premium products, improves our position in attractive segments like aerospace and energy, provides capabilities that will help us commercialize important new product offerings, and offers us improved returns on new capability investments.

“We consider Latrobe an important extension of Carpenter’s capabilities and are very proud of our new partnership. By combining the two companies we will improve product mix, lower cost, and reduce required capital investments for future growth.

“We expect the acquisition to be accretive in year one, even including the one-time costs associated with the merger, and highly accretive in future years. Annual net synergies are anticipated to be in excess of $25 million. The combined entity should be a strong cash generator, with improved growth potential.

“We are financing the cash portion of the acquisition with $170 million of available liquidity. The large percentage of equity is strong evidence of the confidence that the Latrobe ownership group has in the combined company’s prospects going forward. It also preserves our strong balance sheet ahead of what we expect will be an important phase of investment and growth.”

As part of the transaction, Thomas O. Hicks, Chairman and Chief Executive Officer of Hicks Equity Partners and Steven E. Karol, Managing Partner and Founder of The Watermill Group will join Carpenter’s Board of Directors.

Steven E. Karol said, “We are proud of what Latrobe has accomplished over the last four years. We and our partners at Hicks Equity Partners have worked closely with management to refocus the business on high-value products. As a result, Latrobe has expanded capacity, created new opportunities within the oil, gas, and power generation industries, and fostered an entrepreneurial culture that has fueled the success of the business. By joining forces with Carpenter, Latrobe will be positioned to drive future growth and capitalize on the many new value creation opportunities it will enjoy as part of this engineered metals leader.”

“While we recently filed to take Latrobe public, we quickly came to see that the opportunity to join together with Carpenter provides superior benefits for all of our stakeholders,” said Thomas O. Hicks. “Our companies are an excellent fit, and as part of Carpenter – the industry’s technology leader with a more comprehensive platform – the combined company will reach new markets and be well positioned to provide more offerings to customers and business partners throughout the world. Latrobe and Carpenter have an exceptional future together and we look forward to building outstanding value for the combined company’s shareholders and customers.”

Latrobe’s shareholders will own approximately 15.5% of Carpenter’s outstanding common stock.

“The combination creates a business not just with better economics, but with more durable competitive advantage leveraging the expertise of both companies," said B. Christopher DiSantis, President & Chief Executive Officer of Latrobe Specialty Metals. “We are excited that this transaction will be a quick catalyst for incremental growth, provide new opportunities for our employees, and enable us to better utilize the overall asset base to enhance how well we service customers."

The transaction is subject to customary closing conditions and regulatory approvals. Closing is expected to occur during the first quarter of FY2012, which ends September 30, 2011.

Carpenter was represented by J.P. Morgan as financial advisor and Pepper Hamilton LLP as legal counsel. Latrobe, Hicks Equity Partners and Watermill were represented by Credit Suisse as financial advisor and Jones Day as legal counsel.

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Sierra Magazine Rolls out Eco-Friendly Paper Good news from our printing presses: Sierra magazine's paper is now as eco-friendly as it gets. Starting this summer, issues will be printed on recycled, FSC-certified paper. Chuck Baldwin, the magazine's associate director of operations, spent six years looking for the perfect pages. And while there's rarely such a thing as perfection... More.

Sierra Magazine Rolls out Eco-Friendly Paper

Good news from our printing presses: Sierra magazine's paper is now as eco-friendly as it gets. Starting this summer, issues will be printed on recycled, FSC-certified paper. Chuck Baldwin, the magazine's associate director of operations, spent six years looking for the perfect pages. And while there's rarely such a thing as perfection during a quest for sustainability, here’s why the new paper comes pretty close:

It's recycled. Every page will contain at least 90% recycled fiber and 30% post-consumer waste. FutureMark is the only company in America that offers magazine-quality paper with up to 100% recycled content. Using EDF’s paper calculator, company officials estimate that they divert more than 200 million pounds from landfills every year, and in doing so, save more than 2 million trees.

It stays local. Our new paper also keeps Sierra’s carbon footprint low. The paper is recycled from the “urban forest” of Chicago, processed in the Alsip Mill right outside the city, and printed in Sussex, Wisconsin, less than a three-hour drive away.

It's conservationist. The Alsip mill uses the latest clean technology, which has already lowered the plant's VOC emissions by 90% in the last 10 years, and saves 800 million gallons of wastewater every year. During the recycling process, washed-out ink and other residues are collected and used to make landscape cover. FSC certification means that any new fiber content is produced and harvested in responsible ways.

It’s socially responsible. For a company to be FSC-certified, it doesn’t just have to respect the forests, but also the people who depend on them. FSC’s 10 basic principles include protecting indigenous peoples' rights.

It's affordable. Cost is often a prohibitive factor for buying good-quality recycled paper, but Baldwin predicts that Sierra will actually save money by switching, thanks to FutureMark’s efficient processes. Unlike large multinational companies, FutureMark is young and focused.

The result? Sierra will be brighter, whiter, and will just feel better. So when you sit down to read about our earth, remember where the paper came from. And when you're done, pass it along or put it in the recycling bin.

--Christa Morris

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LATROBE, Pa.When the U.S. Marine’s V-22 Osprey tilt-rotor aircraft settled to the Libyan desert to retrieve the ejected U.S. airman, it did so with triple-melted alloys manufactured by Latrobe Specialty Steel. The V-22 Osprey with its unique tilt-rotor mechanism uses many Latrobe premium alloys for such critical components within the transmission gear boxes, rotor shafts and the engines.... More.

LATROBE, Pa.When the U.S. Marine’s V-22 Osprey tilt-rotor aircraft settled to the Libyan desert to retrieve the ejected U.S. airman, it did so with triple-melted alloys manufactured by Latrobe Specialty Steel. The V-22 Osprey with its unique tilt-rotor mechanism uses many Latrobe premium alloys for such critical components within the transmission gear boxes, rotor shafts and the engines.

“The well executed rescue this week, showcased the distinctive advantages of the complex V-22 Osprey that can fly like a fixed-wing plane and land like a helicopter. Every one of Latrobe’s over 800 employees took great pride in their contribution to the Osprey and the rescue. The Latrobe process of triple melting, twice under vacuum, produces an extremely homogeneous premium material which withstands the demanding requirements of this multifaceted aircraft manufactured by Bell Helicopter Textron and The Boeing Co. These and other aerospace manufacturers rely on Latrobe’s exceptional processing capabilities and metallurgical expertise to ensure the highest level of performance,” added Mark T. Weberding, Vice President – Marketing & Sales.

Workers at Latrobe’s main plant in Latrobe, PA , its sister operations in Sandycreek, Venango County, PA and Wauseon, OH process these materials which are shipped into the various supply chains servicing the production of the Osprey. At each phase of the manufacturing process, these employees inspect and test Latrobe’s material for compliance to the various aerospace standards.

Latrobe Specialty Steel, in continuous operation in the same main location since 1913, employs over 800 people across the world. Latrobe Specialty Steel supplies essential materials to the aerospace, defense, energy, industrial and medical sectors. Please visit www.latrobesteel.com for additional information about the company and its products or contact Lisa Pierce at 724-532-6324 or lisa.pierce@latrobesteel.com to arrange an interview.

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American Printer MArch 21, 2011 Some printers still harbor concerns about recycled paper. They might think it doesn’t run well on high-speed presses or that it looks inferior to virgin paper. Perhaps they assume it costs more and is hard to get. These perceptions may have been true 20 years ago, but not anymore. Recycled paper has experienced a technological renaissance... More.

American Printer

MArch 21, 2011

Some printers still harbor concerns about recycled paper. They might think it doesn’t run well on high-speed presses or that it looks inferior to virgin paper. Perhaps they assume it costs more and is hard to get. These perceptions may have been true 20 years ago, but not anymore.

Recycled paper has experienced a technological renaissance in the past decade. By “recycled,” we mean paper that’s made predominantly from previously used paper, up to 100 percent in some paper grades, not the mostly virgin sheets with only a modest amount of recycled fiber. Today’s recycled grades are practically indistinguishable from their non-recycled counterparts.

Parity in quality and performance

Today’s recycled papers meet the same stringent performance speci?cations as virgin paper, with high-quality recycled options available in categories from newsprint and packaging to coated publication and sheetfed printing papers. Recycled papers consistently perform well in every important quality metric, including printed image quality, runnability and brightness. For instance, productivity tests conducted by independent research firm Buyers Laboratory have repeatedly found “no statistical difference in runnability between recycled and virgin paper.” The EPA’s 2007 “Comprehensive Procurement Guidelines” for government agencies states its research found that recycled paper products “are of high quality, widely available and cost-competitive with virgin products.” National retailers such as OfficeMax and Staples stand behind their recycled paper products, asserting they offer “the same quality” as conventional paper. Anecdotally, FutureMark regularly sees runnability reports from its printer partners showing recycled papers consistently performing in the middle of the pack in web breaks per 100 rolls. In other words, web offset sheets made from 90+ percent recycled fiber typically run just as well as most virgin sheets

Green benefits without the green price tag

Print customers are turning to environmental paper increasingly to express their corporate social responsibility. Many consumers understand recycled = green. This is particularly true for recycled paper, which takes only a fraction of the energy, water and chemicals of virgin paper to manufacture.

Environmental concerns have inspired many printers and end users to take a new look at recycled paper. People are often surprised to learn that recycled papers in several grades are priced similarly to non-environmental alternatives. This is because a few specialized mills have achieved the technical and operational efficiencies to make recycled paper on a cost-competitive basis with virgin paper. For these recycled specialists, profitability doesn’t require higher pricing. This means customers can finally gain the green benefits of recycled paper without extra cost.

As recycled paper has achieved parity in quality, performance and price, it has become the go-to option for many large corporate customers, including Dell, DIRECTV, Reader’s Digest Assn., Scholastic, Staples and Walgreens. Recycled paper has gone mainstream.

Recycling’s technology renaissance

Over the past 20 years, recycled paper has become “good as new,” thanks to the billions of dollars invested by the paper industry. Just about every aspect of recycled paper production has been reengineered, from paper formulas and sourcing strategies to deinking equipment and mill design. Companies have optimized the mix of “ingredients” in their recycled papers, infusing binders, coatings and kraft to improve runnability on high-speed presses and to enhance opacity and overall appearance.

Major advancements also have been made in the way contaminants are removed from waste paper. Modern pulping equipment mechanically ejects impurities such as glue strips and plastic wrappers rather than chemically dissolving them in the fiber mix. State of the art deinking processes extract inks, coatings and other surface additives through multiples stages of flotation and screening. The resulting paper fibers are so pure and clean that they require no bleaching and only minimal brightening.

Finally, printers deserve a lot of credit for advancements in recycled paper. By transitioning to aqueous coatings, plant-based inks and low-solvent solutions, printers have made printed materials safer and simpler to clean. Some printers and corporate end-users have gone even further to facilitate recycling, returning their press room scraps and undistributed publications for reuse at their suppliers’ mills. Such “closed-loop” recycling programs are growing quickly and will become prevalent in the coming years, providing new economic and environmental benefits to printers and their customers.

Recycled paper producers foresee another cycle of rapid product innovation ahead, with nanotechnologies and alternative fibers holding particular promise. These continued advancements leave little doubt that, within the next decade, recycled papers will rival the best-performing virgin papers in quality and customer loyalty.

Article taken from InFocus: AP Guest Blog - http://blog.americanprinter.com/in-focus URL to article: http://blog.americanprinter.com/in-focus/2011/03/21/good-as-new-recycled-paper/

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Pulp and Paper International (PPI). February, 2011 As Green As You Get By GRAEME RODDEN, Executive Editor Working under the principle of 'build it and they will come' from the movie, Field of Dreams, FutureMark Paper found the right customers at the right time for its line of publication papers. Already given a headstart from previous mill owner Myllykoski's... More.

Pulp and Paper International (PPI). February, 2011

As Green As You Get

By GRAEME RODDEN, Executive Editor

Working under the principle of 'build it and they will come' from the movie, Field of Dreams, FutureMark Paper found the right customers at the right time for its line of publication papers.

Already given a headstart from previous mill owner Myllykoski's foresight in building a state-of-the-art deinking plant, FutureMark has grown its "green" business by leaps and bounds, especially in the last half of 2010. Other factors such as an increase in paper prices and the closure of some possible competitors have also helped.

In the words of Stephen Silver, President and CEO, sustainability has evolved from "tree huggers" to a Fortune 500 necessity. The timing could not have been better for FutureMark, which began life as an urban mill in Alsip, IL, bordering the southwest side of Chicago. The mill was opened in 1968 by the Chicago Sun-Times newspaper organization as a recycled newsprint producer. After going through a few owners, the mill was bought out of bankruptcy in 2000 y Finnish-based Myllykoski, hwhich folded it into its US subsidiary, Madison Paper Company.

In 2002, Myllykoski invested $200 million in the deinking plant. It also refit the mill's lone paper machine to produce coated paper, CGW No.5 (Pulp & Paper, December 2002, p. 30). However, in 2007, Myllykoski decided to put the mill up for sale.

Enter Watermill, a private equity fund based in Lexington, MA, which has been in business about 30 years. It specializes in industrial businesses that have financial problems, but have features that provide the potential for good turnaround opportunities. Besides its pulp and paper opportunities, Watermill also has investments in metals-related businesses.

In the Alsip mill, Watermill saw an opportunity to push the "green" angle, put push it as it has not been pushed before. Therefore, in November 2009, Watermill bought the mill and renamed it FutureMark Paper COmpany and foucsed on developing a "green strategy". It was, as Silver says, to be a "pureplay for green paper."

The strategy was based on consumer trends and the fact that about one third of the mills business was already green oriented from customers such as Dell, Staples and American cooking guru Rachael Ray. Reader's Digest decided to use FutureMark's paper in Rachael Ray's new cooking magazine that was launched in 2007 and now has a monthly circulation of more than 1.5 million.

In hindsight, the strategy ma appear to be a no-brainer, but Silver adds, at the time, there was still a question mark about hte quality and desireablity of recycled paper, particularly for the applications that FutureMark planned.

... to read the full article, please see attached.

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Latrobe, PA, January 17, 2011 – Latrobe Specialty Steel Company, a leading global manufacturer and distributor of high performance specialty metals, announces the appointment of B. Christopher DiSantis as President and Chief Executive Officer. With a background in metals and materials sciences plus extensive experience in aerospace and defense, DiSantis brings to Latrobe an outstanding... More.

Latrobe, PA, January 17, 2011 – Latrobe Specialty Steel Company, a leading global manufacturer and distributor of high performance specialty metals, announces the appointment of B. Christopher DiSantis as President and Chief Executive Officer. With a background in metals and materials sciences plus extensive experience in aerospace and defense, DiSantis brings to Latrobe an outstanding track record of manufacturing leadership.

Prior to joining Latrobe, DiSantis served as President of Hawk Corporation, formerly a public company (NYSE Amex: HWK) and a global manufacturer of friction braking products. He graduated summa cum laude from Dartmouth College with a bachelor’s degree in mathematics and economics. In 2009, Crain's New York Business named him to its Forty Under 40 Class.

Latrobe’s Co-Chairman Steven E. Karol added “Chris’ track record of leading organizations to higher levels of growth and performance, paired with Latrobe’s exceptional product quality, technology, and service, is a winning combination. His diverse metals background is ideal for Latrobe Specialty Steel.”

“With Chris at the helm,” said Co-Chairman Thomas O. Hicks, “Latrobe will enhance its exceptional growth trajectory and market leadership worldwide. Chris brings to Latrobe a keen focus on serving the needs of his customers, and he is the perfect complement to an already impressive management team.”

Commenting on his new leadership position, DiSantis said, “I am thrilled to join Latrobe’s exceptional management team at a time when many exciting and important programs are well underway. Latrobe’s capabilities and products uniquely position it within the specialty metals industry as it extends its reach into important new grades and end markets. I look forward to joining the team to help Latrobe reach its full potential.”

A passionate Pittsburgh sports fan, Chris and his wife have two children.

Latrobe Specialty Steel is owned jointly by The Watermill Group and Hicks Equity Partners LLC.

About Hicks Equity Partners

Hicks Equity Partners (“HEP”) is the private equity arm for Hicks Holdings LLC, a holding company for the Thomas O. Hicks family’s assets. With 35 years of private equity experience, Mr. Hicks pioneered the “buy and build” strategy of investing and founded Hicks Muse Tate & Furst, which raised more than $12 billion of private equity across six funds and completed over $50 billion of leveraged acquisitions. HEP looks for established companies with proven track records, strong free cash flow characteristics, a strong competitive industry position and an experienced management team looking to partner with long term capital.

About The Watermill Group

For over three decades, The Watermill Group ( www.watermill.com ) has been acquiring, operating and improving companies. The firm focuses on investing in companies facing a crossroads by applying a unique combination of strategic insight and management expertise to drive growth.

About Latrobe Specialty Steel Company

Latrobe Specialty Steel, in continuous operation in the same location since 1913, employs over 800 people across the world. Latrobe Specialty Steel supplies essential materials to the aerospace, defense, energy, hydrocarbon and tool steel sectors. Please visit www.latrobesteel.com for additional information.

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We are extremely pleased to announce the appointment of John Laskowsky to the position of President and CEO of C&M Corporation effective January 10, 2011. John’s proven record of leading organizations to higher levels of profitable growth coupled with a focus on operational excellence and a background in engineering is an ideal fit for C&M, a company poised for impressive growth. ... More.

We are extremely pleased to announce the appointment of John Laskowsky to the position of President and CEO of C&M Corporation effective January 10, 2011.

John’s proven record of leading organizations to higher levels of profitable growth coupled with a focus on operational excellence and a background in engineering is an ideal fit for C&M, a company poised for impressive growth. Under John’s leadership, we are certain that C&M will accelerate its expansion to new industries and segments, deepen its share of existing markets and lead the field in new product development.

John joins C&M from Barry Controls (a $130MM manufacturer of engineered systems for various industry sectors), where he was President and CEO since 2006. Prior to his work with Barry Controls, John worked at Eaton Truck Group -- where he started up a manufacturing unit in central China and built a successful business as General Manager, living in China for three years – and Berg Electronics where he had broad P/L responsibility for a $60MM business. John has BSEE from the University of Missouri and an MBA from Pepperdine University in CA. He and his wife Marie and daughter Lauren reside in Ashland, MA.

We are thrilled to have John join our cadre of exceptional CEO’s leading our portfolio companies to reach their full potential. We are fortunate to have someone with John's background and skills join C&M to lead us forward, execute on an already strong strategy, and launch C&M to new heights.

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Watermill Group, of Lexington, MA, Sells Preferred Compounding Corp. LEXINGTON, MA -- In a transaction between private equity firms, Watermill Group has sold Preferred Compounding Corporation to Wingate Partners effective December 8, 2010 for over 6x Watermill Group’s initial investment. Preferred, headquartered in Barberton, OH supplies proprietary and custom mixed rubber... More.

Watermill Group, of Lexington, MA, Sells Preferred Compounding Corp.

LEXINGTON, MA -- In a transaction between private equity firms, Watermill Group has sold Preferred Compounding Corporation to Wingate Partners effective December 8, 2010 for over 6x Watermill Group’s initial investment.

Preferred, headquartered in Barberton, OH supplies proprietary and custom mixed rubber compounds to customers. Watermill acquired Preferred in 2002, from Bank of America, at a time when the industry was in turmoil and the company was at a challenging crossroads. At the time of purchase, Preferred had limited geographic reach and lacked strategic direction. Just eight years later, Preferred Compounding has been transformed into a thriving industry leader with expanded capabilities, an enviable management team and the best customer service in the industry.

“Over the past eight years, we have created meaningful and significant growth at Preferred,” said Tim Eburne, Partner at Watermill Group. “By developing state-of-the-art manufacturing capabilities and expanding both organically and through acquisition, Preferred now delivers highly engineered compounds to high caliber customers.”

In 2005, Watermill doubled the company’s size and geographic reach by acquiring Associated Rubber, which enabled Preferred to expand into the Southeast. As a thriving business, Preferred now supports 200 jobs in 4 communities nationwide.

“We have built a strong partnership with Preferred’s management team as together we pursued a meaningful growth strategy built on time delivery and a zero defect philosophy,” stated Steven Karol, Managing Partner and Founder of Watermill Group, “now Preferred has found a terrific home with Wingate. Watermill is proud to have been a steward in this part of the company’s growth and development.”

Preferred’s new owners want to build on that progress. "Our intention for 2011 and beyond is to continue to grow by expanding the capabilities and services we provide our customers," said Preferred Compounding President and CEO Kenneth L. Bloom. "Wingate is intimately familiar with what it takes to successfully run a company like Preferred Compounding and fully supports our current management team, operational footprint, and strategic direction."

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A mark of the future By: Jim Johnson December 06, 2010 Officials at FutureMark Paper Co. figured their mill was ahead of the curve, but there still were no guarantees when they purchased their recycled paper site late in 2009. Now, just about a year later, the Alsip, Ill., operation near Chicago is running at full capacity and sells all of the paper it can make. “The quick story here is the... More.

A mark of the future By: Jim Johnson December 06, 2010 Officials at FutureMark Paper Co. figured their mill was ahead of the curve, but there still were no guarantees when they purchased their recycled paper site late in 2009. Now, just about a year later, the Alsip, Ill., operation near Chicago is running at full capacity and sells all of the paper it can make. “The quick story here is the mill is way ahead of its time. It’s been recycling paper for 40 years,” said Steve Silver, CEO of the company. “The mill went through several owners, one or two bankruptcies.” By the time Lexington, Mass.-based Watermill Group came along and purchased the site, the facility had been up for sale by the Myllykosi Group of Finland for a couple of years. “It never did very well and the previous owner put it up for sale. There wasn’t a lot of people lined up to buy it,” Silver said. But the private equity firm, he said, saw potential where others saw danger in a down economy that’s been exceptionally rough on the paper industry. Between $200 and $300 million had been pumped into the site earlier this decade to convert the mill from newsprint production to lightweight coated mechanical paper. That’s the type of glossy paper used in magazines, advertisements and catalogs. And while the site always relied heavily on recycled fiber to make new paper, previous owners never touted that fact. Watermill saw an asset in a market that is increasingly going green. Others saw a mill producing a recycled product and were concerned it would not sell as well as virgin paper that’s commonly used for magazines and catalogs, the CEO said. “What we saw is some underlying value.” With a “green tidal wave” occurring in the United States in recent years, Silver said, Watermill figured it could sell the mill’s 93% recycled content paper to all kinds of companies and publishers eager to prove they are green. “We thought the time was right to tell the story,” Silver said. And so they did. FutureMark has the capacity to make about 150,000 tons of paper each year and currently uses a mix of old newspapers, old magazines and higher grades as raw materials — about 400 tons per day. The company adds about 7% virgin pulp to help provide strength to the finished product, but that’s down from about 14% just a couple of years ago. The company, in advertising literature, says it diverts more than 200 million pounds of paper from landfills each year. FutureMark sits along an industrial stretch of road in Alsip on about 25 acres, where a steady stream of locally sourced recycled fiber is fed into the site’s deinked pulp mill. That’s where the ink is removed and the old fiber is prepared for reuse. “We have a very small reserve. We have about a four-day supply on hand. We like to get the fiber quickly and use it quickly,” said Steven Smith, vice president of the Alsip mill. “Because the longer the ink cures on the fiber, the harder it is to remove from the fiber.” Keeping a small, but steady supply on hand also has financial benefits. “You don’t want to tie up millions of dollars on waste fiber if you don’t have to,” Smith said. “It’s a big advantage to be a recycled paper mill in an urban forest.” Keeping a steady supply on hand has not been the problem, but the company has seen a degradation of quality as more and more communities go to single-stream recycling, Smith said. Contamination is much higher than it used to be, but FutureMark has the equipment needed to tackle that issue. “A big part of our success and our ability to serve the market is the quality of our deinking plant we have and the things we learned about how to sort fiber and how to operate it to get the best quality,” he said. While the company has made a name for itself by producing highly recycled end products, FutureMark also has been able to cut its own waste by finding a use for byproducts from the its own manufacturing process. About 90,000 tons per year of coatings, fillers and paper dust that were once sent to landfills are now used as a soil amendment. So why is FutureMark having success now when the mill’s previous owner looked for a way out? “It’s really a pure marketing story,” Silver said. “The only thing that’s changed is we explain [the recycling story].” The mill, he said, was “never marketed it as the environmental sustainability pure play that it is.” “Most paper companies aren’t good marketers,” Smith said. “The other thing, we make a big deal out of is who we do business with,” Silver said. If major players like Wal-Mart and Staples see value in using FutureMark’s paper, others will follow, the company said it believes. Watermill would not reveal the mill’s purchase price, but Silver did provide a little insight. “It was a bargain,” he said, adding the price was “far less” than the cost of building new. “The demand for green products has clearly moved beyond tree huggers to everyday families and Fortune 500 companies. Companies that supply the products they want are being handsomely rewarded,” Silver said. Collapse

An avid sailor, Steven Karol discusses how his company won the race by keeping its eyes on the horizon and sailing into the storm The winds of change are constant in the world of business. Capitalizing on that change is the Massachusetts based Watermill Group, a private buyout organization that focuses on acquiring middle-market companies in transition. The "transition" in... More.

An avid sailor, Steven Karol discusses how his company won the race by keeping its eyes on the horizon and sailing into the storm

The winds of change are constant in the world of business. Capitalizing on that change is the Massachusetts based Watermill Group, a private buyout organization that focuses on acquiring middle-market companies in transition.

The "transition" in this case can take any number of forms -- it may be a traditional private sale by the founder or family, a corporate carve out, a secured party sale, or a bankruptcy auction.

The Watermill Group's formula is as straightforward as it gets. The company looks for companies facing strategic or financial challenges and then applies transformational capital, strategic insight, adn managerial guidance to drive change.

It's an approach that obviously works, as the firm's partners have collectively completed more than 100 deals with a total transaction value of more than $4.1 billion."

"Our passion lies in helping companies achieve their full potential through strategic transformation," said Managing Partner and Founder Steven Karol, "We create vibrant and successful businesses out of assets or companies that were close to shutdown or liquidation, suffering from a history of severe operating losses, burdened with excessive debt, or at an inflection point in their growth trajectory."

Karol attributes the group's three decades of success to following a commonsense approach. The group first reviews the business envirnment and the lifecycle position of the company. Preferred are US or Canadian companies that require operating, strateic and capital resourcees to grow. Sales adn profitability declines are common in these companies, but many are growing modestly and need help to capitalize on larger opportunities.

Next, the group seeks to enhance performance through managerial guidance. While the existing management teams are retained in many cases, some situations require bringing in fresh blood. Other times, existing management teams are simply augmented with Watermill principals.

Here, Watermill emphasizes a values-based corporate culture, putting integrity at the forefront of all that it does. "When you're managing other people's money, if you have integrity and they trust you, you have much more flexibility and range to do what you need to do."

An avid sailor, Karol had his eye on the horizon when the dark clouds of a troubled economy began appearing several years ago.

"We knew we were headed for rough weather, so we streamlined and cut costs," he said. "But everyone else was doing that too. So, after we had battened down the hatches, we asked, 'What can we do to make headway?"

 

Here, he knew Watermill had to attack strategically. "We put new capabilities into companies while others were taking them out," he said. "With some companies, we invested in technology, with others it was making sure we had the right people, and with some it was updating machinery and equipment."

In the end, Karol and company knew they had to sail into the heart of the storm with the belief that they wanted to be way ahead when the economy came out of thedoldrums. "A sailboat race is won on the upwind leg," he said. "If everyone's not working together as a team, the sails are not optimized; you lose wind adn, ultimately, lose speed."

It was a strategy that has paid off handsomely. Without exception, Watermill's portfolio of companies (which includes names such as Latrobe Specialty Steel Company, C&M Corporation and Preferred Compounding Corporation) have gained marketshare adn are now better positioned than when they went into the recession.

And, with the worst of the storm behind, Karol sees clearer skies ahead. "There's dry powder in the market," he explained. "Private equity firms have raised $600 billion more than they've spent. Many banks, corporations, and private equity firms are exploring how we can help them generate new investment opportunities as well as enhance their existing portfolio holdings, so we think next year will be a great one."

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Today on America Recycles Day, the only nationally recognized day dedicated to the promotion of recycling programs in the United States, FutureMark® Paper Company announced it has recycled more than 1.5 billion pounds of paper since its mill first began producing coated publication paper eight years ago. The Illinois-based company, which is the only North American manufacturer capable of producing... More.

Today on America Recycles Day, the only nationally recognized day dedicated to the promotion of recycling programs in the United States, FutureMark® Paper Company announced it has recycled more than 1.5 billion pounds of paper since its mill first began producing coated publication paper eight years ago. The Illinois-based company, which is the only North American manufacturer capable of producing up to 100-percent recycled lightweight coated paper for magazines and catalogs, reached the 1.5 billion milestone last month.

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FutureMark® Paper Company, the only North American manufacturer capable of producing up to 100% recycled coated paper for magazines and catalogs, was awarded the Best Green Reliability Program by Uptime Magazine yesterday at the Solutions 2.0 Conference. "The judging panel was impressed by FutureMark Paper's commitment to environmental sustainability in every aspect of its business, including... More.

FutureMark® Paper Company, the only North American manufacturer capable of producing up to 100% recycled coated paper for magazines and catalogs, was awarded the Best Green Reliability Program by Uptime Magazine yesterday at the Solutions 2.0 Conference.

"The judging panel was impressed by FutureMark Paper's commitment to environmental sustainability in every aspect of its business, including its predictive maintenance and reliability programs," said Terry O'Hanlon, publisher of Uptime Magazine and Reliabilityweb.com. "The gains that FutureMark made in production, efficiency and cost avoidance demonstrate the significant impact a well-designed, well-run predictive maintenance program can have on a company's operations."

FutureMark Paper Company estimates it has saved more than $2 million so far from reductions in downtime, idle time, quality losses and maintenance costs since embarking on its new maintenance and reliability program last year. The company has instituted hundreds of changes to its machine monitoring and plant maintenance programs, from simple process refinements in the prioritizing and handling of work orders to the complex integration of accelerometers, infrared scanners and ultrasonic sensors to detect potential points of malfunction before they can disrupt production.

"Our predictive maintenance program is a prime example of how new technologies and process innovations can help transform a business," said FutureMark's President and CEO Steve Silver. "Our maintenance engineers have helped us achieve steady gains in production levels to meet the unprecedented demand for our recycled paper. We're very proud to be honored as Uptime's Best Green Reliability Program."

The Uptime PdM Awards recognize exceptional predictive maintenance programs and the engineering teams who run them. Winners are chosen from a broad field of applicants in such diverse industries as energy, consumer packaged goods, pharmaceuticals, mining and paper. This year's winners were honored during an awards ceremony last night at the Solutions 2.0 Conference in Bonita Springs, Fla.

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Recycling Today, 10-22-2010   Steve Silver, president and chief executive officer of FutureMark Paper, is frustrated. The paper mill, located just outside of Chicago, is surrounded by a vast supply of recovered fiber that the company needs to run its machines. While the company’s products are in high demand by forward-thinking publishing houses and environmentally... More.

Recycling Today, 10-22-2010

 

Steve Silver, president and chief executive officer of FutureMark Paper, is frustrated. The paper mill, located just outside of Chicago, is surrounded by a vast supply of recovered fiber that the company needs to run its machines. While the company’s products are in high demand by forward-thinking publishing houses and environmentally conscious corporations, FutureMark continues to struggle to obtain clean furnish at a fair price from its suppliers.

In addition to quality problems, Silver also decries the huge flow of recovered fiber to offshore sources, primarily China, which leaves domestic paper companies, including FutureMark, at a disadvantage.

The company, which manufactures coated mechanical printing and writing paper with as much as 100 percent recycled content, operates a mill Alsip, Ill., a suburb of Chicago, amid many of the largest printing plants in the country.

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C&M Corporation, a vertically integrated manufacturer of bulk cable, coil cords, and cable assemblies, has announced receipt of a Gold Level 2010 Innovation Prize from the Connecticut Quality Improvement Award Partnership, Inc. C&M earned the award for the Company's project, "Re-Inventing the Order Fulfillment Process in a Mature Industry". C&M Corporation implemented a program to support... More.

C&M Corporation, a vertically integrated manufacturer of bulk cable, coil cords, and cable assemblies, has announced receipt of a Gold Level 2010 Innovation Prize from the Connecticut Quality Improvement Award Partnership, Inc.

C&M earned the award for the Company's project, "Re-Inventing the Order Fulfillment Process in a Mature Industry". C&M Corporation implemented a program to support a large multi-national OEM’s need to have maximum ordering flexibility across over 300 SKU’s while simultaneously reducing dock-to-dock leadtime to less than 14 days, improving on time delivery, and, from a quality perspective, reducing PPM to world class levels. In addition to achieving these goals, both C&M and its client have seen an increase in market share that can be directly attributed to the success of the program.

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Latrobe, PAOn June 22nd, Latrobe Specialty Steel’s VIM-VAR expansion won the inaugural American Metal Market Award for Excellence for Best Operational Improvement. This expansion supports growing demands for high quality vacuum melted steels from the American military, as well as from many commercial aerospace, power generation and petroleum exploration customers. Latrobe Specialty Steel... More.

Latrobe, PAOn June 22nd, Latrobe Specialty Steel’s VIM-VAR expansion won the inaugural American Metal Market Award for Excellence for Best Operational Improvement. This expansion supports growing demands for high quality vacuum melted steels from the American military, as well as from many commercial aerospace, power generation and petroleum exploration customers. Latrobe Specialty Steel (LSS) put the needs of its customers first and tripled capacity for vacuum melted steel which reduced the lead times for these products from approximately 72 weeks to 20 weeks.

LSS along with its partners, Consarc, Rancocas, NJ and Continental Design and Management Group, Pittsburgh, PA installed one of the world’s largest Vacuum Induction Melting (VIM) furnaces and several Vacuum Arc Remelting (VAR) furnaces starting in mid-December 2007. The first heat was melted in September 2008. Beginning work in Pennsylvania’s winter months, Latrobe excavated 40 feet below ground and built 100 feet above ground a 65,000-square-foot building. As soon as the roof was partially completed, assembly began of the 30-ton VIM using a modified design-and-build technique to overcome the elements and a compressed schedule.

The American Metal Market presented the Award for Excellence for Best Operational Improvement to LSS on the evening of June 22 at a celebratory dinner at the AMM Steel Success Strategies conference in New York City. Other finalists for the award included AK Steel Corp. and ArcelorMittal SA. This is the second award LSS has received for the VIM-VAR expansion this year. In January the Association for Iron & Steel Technology’s (AIST) presented LSS the 2009 Project Excellence Award.

LSS produces and sells worldwide VIM-VAR steel for numerous critical aerospace, defense, power generation and oil and gas exploration applications. For example, you will find LSS’s VIM-VAR steel on many jet airplane and high-performance helicopters made in the United States, and overseas.

Latrobe Specialty Steel, in business since 1913 in Latrobe, PA, has been supplying the aerospace, defense, power generation, oil and gas exploration, and industrial sectors since 1958. The firm employs approximately 800 people.

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Newpapers, magazines, press kits, brochures, catalogs, newsletters, and memos...oh my! We deal with hundreds of pieces of printed paper everyday, but most are discarded without a second thought to where they came from or what they're really worth. Some startling facts: Americans discard 4 million tons of office paper every year -- enough to build a 12 foot high wall of paper... More.

Newpapers, magazines, press kits, brochures, catalogs, newsletters, and memos...oh my! We deal with hundreds of pieces of printed paper everyday, but most are discarded without a second thought to where they came from or what they're really worth.

Some startling facts:

• Americans discard 4 million tons of office paper every year -- enough to build a 12 foot high wall of paper from New York to California.
• In prehistoric times, 60 percent of the earth's surface was covered by forests - today that amount has been reduced by 30 percent and is still shrinking.
• It takes 17 pulpwood market-sized trees to make a ton of paper, or one tree makes about 11,500 pages of 8.5 x 11 20-pound paper. Although the technology and desire for paper with highly recycled content exists, many newspaper and magazine publishers have been slow to make the change to more sustainable paper sources. Thanks to a company in Illinois, however, businesses large and small now have access to hassle-free green publishing products.

FutureMark Paper Company is an environmental paper manufacturer that produces high-quality paper with an unmatched level of recycled content.

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C&M Technologies Group Inc., located in Wauregan, CT, has announced receipt of Rockwell Automation’s Supplier of the Year Award for 2009. This prestigious honor was presented during a vendor conference held in Milwaukee, WI, the week of February 5th. The award is based on performance against defined Rockwell Automation criteria and measurements throughout the year. In addition... More.

C&M Technologies Group Inc., located in Wauregan, CT, has announced receipt of Rockwell Automation’s Supplier of the Year Award for 2009. This prestigious honor was presented during a vendor conference held in Milwaukee, WI, the week of February 5th.

The award is based on performance against defined Rockwell Automation criteria and measurements throughout the year. In addition to lead-time reduction, on time delivery, quality, and productivity, selection as the Supplier of the Year also includes consideration of other key business metrics such as the quality and frequency of communication, the sharing of “best practices”, joint investment in continuous improvement, responsiveness, and active collaboration in identifying areas for product or process enhancement.

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BARBERTON, OHIO – Four years of improvements have Preferred Compounding charging into 2010 with strong fundamentals and a well-provisioned tool set for meeting the needs of manufacturers that use custom compounded elastomers. The company is signaling this emergence by introducing a new name, logo and branding. As of April 19, Preferred Rubber Compounding Corporation is Preferred Compounding.... More.

BARBERTON, OHIO – Four years of improvements have Preferred Compounding charging into 2010 with strong fundamentals and a well-provisioned tool set for meeting the needs of manufacturers that use custom compounded elastomers. The company is signaling this emergence by introducing a new name, logo and branding.

As of April 19, Preferred Rubber Compounding Corporation is Preferred Compounding. Its new logo includes a five-armed blending swirl representing the mix of long-held values the company brings to each customer relationship. These are summed up in the new tagline: “Preferred performs. You achieve.”

“Preferred has always been customer and quality focused,” says Ken Bloom, president & CEO. “Now we can rapidly price, engineer, deliver and support practically any compound and delivery schedule customers request.”

Preferred increased its specialized capacity and overall production capabilities with the 2006 acquisition of Associated Rubber. Its four plants enable the company to meet tight schedules anywhere east of the Rockies and also provide redundancy. Preferred has connected all locations in the same ERP system, updated compounding controls, beefed up technical and sales staff and implemented more flexible production and purchasing arrangements.

“We take a long-term approach based on daily performance. We find out what it is in the design, engineering and supply of elastomeric compounds that can improve each customer’s business. We then work to find a way to make those benefits happen,” Bloom says. “We believe that if we perform each day, our customers will achieve their objectives.”

Bloom says the five blending “swirls” in the logo represent the five Preferred Compounding values: consistent quality, technical excellence, comprehensive capabilities, pro-active service and relationship focus. Preferred treats each relationship as a partnership, Bloom explains, which enables customers to improve productivity and performance and become more agile and confident.

Preferred Compounding plants are in Tallapossa, Georgia, Huntingdon, Tennessee, Fruithurst, Alabama and Barberton, Ohio, which is also company headquarters. Preferred supplies proprietary and custom mixed rubber compounds, chemical blends and calendered sheet. Customers include molders, extruders, mixers and others in the rubber goods market. Primary industries served are automotive, construction, power generation and roll goods.

Preferred (www.preferredperforms.com) is a portfolio company of The Watermill Group of Lexington, Massachusetts. (www.watermill.com). Watermill helpscompanies reach their true potential as thriving businesses capable of supporting jobs and contributing to their local communities. The firm focuses on investing in companies where there is the opportunity to enhance performance through strategic change, operating improvements, or balance sheet realignments.

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As featured on the Triplepundit blog: When paper is recycled, its ink, coating and unusable fibers are left as waste products. But FutureMark has developed a way of changing that. These “waste” materials are high in calcium and, according to FutureMark, “…have nutritive properties similar to agricultural lime, which is a common fertilizer supplement.” So now,... More.

As featured on the Triplepundit blog: When paper is recycled, its ink, coating and unusable fibers are left as waste products. But FutureMark has developed a way of changing that.

These “waste” materials are high in calcium and, according to FutureMark, “…have nutritive properties similar to agricultural lime, which is a common fertilizer supplement.” So now, FutureMark connects 30,000 tons of this material to a farm supply group each year. Instead of being hauled to a landfill, it is used in landscaping applications. This also decreases the need for mining liming agents, and this alternative soil nutrient is just being PR happy talk, it is currently distributed through Prairie Lime of DeMotte.

FutureMark is also the one US company that can produce 100 percent recycled coated mechanical printing paper (think glossy magazines and catalogs). By comparison, most coated mechanical paper has only around 15 percent recycled content.

 

More: http://www.triplepundit.com/2010/04/futuremark-sets-the-bar-higher-for-us-recycled-paper-companies/#comments

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Computationally-Designed, High-Performance Alloy for Aircraft Landing Gear and Other Applications Now Available from Latrobe Specialty Steel Company.   LATROBE, Pa. and EVANSTON, Ill., April 5-- QuesTek Innovations LLC has awarded a license to Latrobe Specialty Steel Company to produce and sell Ferrium® M54™. This is the first license awarded... More.

Computationally-Designed, High-Performance Alloy for Aircraft Landing Gear and Other Applications Now Available from Latrobe Specialty Steel Company.

 

LATROBE, Pa. and EVANSTON, Ill., April 5-- QuesTek Innovations LLC has awarded a license to Latrobe Specialty Steel Company to produce and sell Ferrium® M54™. This is the first license awarded to produce commercially and sell this alloy using QuesTek's compositions, processing expertise and intellectual property. Terms of the multi-year agreement were not disclosed.

Ferrium M54 is a premium-quality steel that offers ultra high strength and toughness, having an ultimate tensile strength of 294 ksi, yield strength of 250 ksi, and fracture toughness of 110 ksi square root inch as typical properties. QuesTek computationally designed and developed M54™ to be a cost-effective alternative to alloys such as AerMet® 100 (in part by limiting high-cost alloying elements such as cobalt), while meeting or exceeding all key properties. Applications of this class of alloys can include aircraft landing gear and arresting tailhooks, shock struts, tow bars, drive shafts, actuators, blast containment devices, fasteners, golf club face inserts and other highly-loaded components.

QuesTek received funding and direction from the U.S. Navy Naval Air Systems Command (NAVAIR) to computationally design and develop M54™, under both an earlier Phase I and a current Phase II Small Business Innovation Research (SBIR) project. NAVAIR also recently awarded QuesTek a Phase I SBIR project to evaluate and test M54 and other materials for arresting tailhook applications.

QuesTek's design, development and licensing of M54™ builds upon its earlier design, development and licensing of Ferrium S53®, another commercially-available ultra high strength steel. While M54™ has significantly greater yield strength and fracture toughness than S53, the resistance of S53 to general corrosion is far greater than that of M54™.

Scott A. Balliett, Latrobe Specialty Steel's Director of Technology and Quality, said: "We're pleased to further build our relationship with QuesTek and offer our global customers another valuable new premium-quality VIM VAR steel. Ferrium M54 VIM VAR should help our customers reduce costs and improve the performance and durability of their products for vital defense, energy, commercial and other industrial applications. We produce this alloy and many other premium alloys in our state-of-the-art vacuum melting (VIM) and vacuum remelting (VAR) facilities, including the recent VIM and VAR expansion to our Latrobe, PA facility."

Charlie Kuehmann, QuesTek's President and CEO, said: "We're pleased to award this license to Latrobe. The commercial introduction of Ferrium M54™ further demonstrates how our Materials by Design® technology and expertise can simultaneously reduce costs and improve the performance of materials. We look forward to working with Latrobe and with customers and design engineers worldwide to identify product applications that can benefit from using M54™ as well as our other licensed alloys Ferrium S53, C61™ and C64™."

 

About Latrobe Specialty Steel Company

Latrobe Specialty Steel, headquartered in Latrobe, PA, has been in operation since 1913. Since 1958, Latrobe Specialty Steel has been a leading supplier of premium vacuum melted alloys to the aerospace and defense sectors. The firm employs approximately 800 people. Find additional information about Latrobe Specialty Steel at www.latrobesteel.com or contact Lisa Pierce at 724-532-6324 (lisa.pierce@latrobesteel.com).

About QuesTek

QuesTek Innovations LLC (www.questek.com) is a global leader in computational materials design. QuesTek uses its proprietary Materials by Design technology and expertise to rapidly design and develop new materials that reduce capital, processing, operating or maintenance costs, or improve environmental protection, competitive supply or competitive advantage. QuesTek has been highlighted in many leading business and technical publications, and has more than 30 patents awarded or pending worldwide. For more information, contact Rich Kooy at 1-847-425-8213 or rkooy@questek.com.

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Environmental coated paper manufacturer leads industry in adopting greener coatings and innovating waste paper reuse Alsip, Ill. – March 29, 2010 – Today FutureMark™ Paper Company, the only North American manufacturer capable of producing up to 100 percent recycled coated paper for magazines and catalogs, announced two new initiatives to lower the environmental... More.

Environmental coated paper manufacturer leads industry in adopting greener coatings and innovating waste paper reuse

Alsip, Ill. – March 29, 2010 – Today FutureMark™ Paper Company, the only North American manufacturer capable of producing up to 100 percent recycled coated paper for magazines and catalogs, announced two new initiatives to lower the environmental impact of paper production. The company is now using an environmentally sustainable binding compound made from corn starch in its paper coatings instead of petroleum-based latex. Furthermore, FutureMark has developed an innovative product that reuses the short paper fibers, inks and coating minerals extracted from recycled paper as a soil nutrient.

“Making recycled paper in an environmentally friendly way has long been a point of pride for FutureMark and our employees,” said Steve Silver, President & CEO of FutureMark Paper Company. “With these two advancements, we’re further reducing the environmental impact of our manufacturing processes, while returning nutrients to the earth and making incremental improvements to our very high-quality recycled paper.”

 

FutureMark Moves to Biolatex Coatings

FutureMark is now using EcoSynthetix® EcoSphere® biolatex® binding agents in its paper coating formula instead of the traditional chemical binders derived from petroleum that’s used by most of the paper industry. FutureMark is the first North American paper manufacturer to incorporate this new biolatex coating ingredient, derived from 100 percent renewable feedstock, in its commercial production process. FutureMark estimates the switch will result in reduced carbon emissions equal to taking 8,000 cars off the road for one year. The company expects to achieve an incremental reduction in carbon emissions from the transport of EcoSphere biolatex binder, which is shipped as a dry product. Compared to conventional petroleum-based binders, which are shipped pre-mixed with water, EcoSphere biolatex binder is far more efficient to transport, taking up less truck space and dramatically lowering fuel and shipping costs.

“It’s really a win on all fronts – for the environment, for our customers and for our business,” said Steve Smith, FutureMark’s Vice President of Operations, who oversees the company’s advanced paper production process. “By using this innovative starch-based binder from EcoSynthetix in our coating formula, we expect to reduce our environmental impact and costs, while preserving the excellent brightness, opacity and gloss that customers have come to expect of FutureMark’s paper products.”

 

FutureMark Develops Agricultural Lime Alternatives

Marking another milestone in its efforts to reduce waste and reuse resources, FutureMark has developed FutureMark High-Calcium Paper Lime (HCPL), a soil nutrient made from reclaimed paper. FutureMark “washes” more than 18 semi trucks of waste paper each working day, extracting short paper fibers, inks, fillers and coating minerals from recyclable paper fibers. The extracted materials – almost 30,000 tons per year – are high in calcium and have nutritive properties similar to agricultural lime, which is a common fertilizer supplement.

“FutureMark HCPL is our way of returning the nutrients found in paper back to the soil,” said FutureMark Technical Services Manager Glen Johnson, who oversees the company’s environmental sustainability and reporting programs. “Our paper lime is safe and effective. It reduces the need for limestone mining and puts to beneficial use a nutrient-rich resource that would otherwise go to landfills.”

Like conventional agricultural lime, FutureMark HCPL can be used to balance soil pH, as well as to enrich soil with a high concentration of calcium, an essential plant nutrient. FutureMark HCPL is a lower-cost, environmentally sustainable alternative to conventional liming agents, which must be mined from the earth. The product culminates from ten years of proprietary process development and three years of research and testing. FutureMark HCPL has undergone extensive chemical analyses and rigorous safety tests by independent labs and government agencies in two states. It has been approved for agricultural use in the states of Illinois and Indiana and is available through Prairie Lime of DeMotte, Ind., at (219) 987-8340.

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Latrobe Specialty Steel's VIM-VAR expansion won by unanimous vote the Association for Iron and STeel Technology's (AIST) award for 2009 Project Excellence..... Dan Hennessy, Latrobe's Vice President Manufacturing said, "Our team headed by Neal Fenton used the most modern project management tools. At the same time, they cultivated unique relationships with the construction companies,... More.

Latrobe Specialty Steel's VIM-VAR expansion won by unanimous vote the Association for Iron and STeel Technology's (AIST) award for 2009 Project Excellence.....

Dan Hennessy, Latrobe's Vice President Manufacturing said, "Our team headed by Neal Fenton used the most modern project management tools. At the same time, they cultivated unique relationships with the construction companies, and angineering firm, a key equipment supplier and the building trades. The construction project targeted the growing demand for premium  vacuum induction melted steel for the essential aerospace and defense markets. AS a result of this expansion, customer lead times fell precipitously from 72 weeks to about 20 weeks."

 

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Crucible Industries LLC is pleased to announce its partnership with Latrobe Specialty Steel Distribution for the sales and marketing of Crusible Particle Metallurgy ("CPM"). Supported by more than 30 years of investment in research and development, Crucible's CPM is one of the world's most advanced powder metals materials and a critical input for companies in the automotive, aerospace... More.

Crucible Industries LLC is pleased to announce its partnership with Latrobe Specialty Steel Distribution for the sales and marketing of Crusible Particle Metallurgy ("CPM"). Supported by more than 30 years of investment in research and development, Crucible's CPM is one of the world's most advanced powder metals materials and a critical input for companies in the automotive, aerospace and tooling industries. CPM is the "gold standard" of powder metals, and customers value CPM for its high quality and performance.

Under the arrangement, Crucible Industries will manufacture the CPM grades at its Solvay, NY, steel mill and Latrobe Specialty Steel Distribution will sell the products through its eight locations in North America.

 

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Steel Guru: November 24, 2009. QuesTek Innovations LLC announced that it has awarded licenses to Latrobe Specialty Steel Company to produce and sell Ferrium® C61™ and C64™ alloys. These are the first licenses granted by QuesTek to make commercially and market these two alloys using QuesTek’s compositions, processing expertise and intellectual property. For more... More.

Steel Guru: November 24, 2009.

QuesTek Innovations LLC announced that it has awarded licenses to Latrobe Specialty Steel Company to produce and sell Ferrium® C61™ and C64™ alloys. These are the first licenses granted by QuesTek to make commercially and market these two alloys using QuesTek’s compositions, processing expertise and intellectual property.

For more information, please view the attached PDF. (link below)
 

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Lexington, Mass. – November 9, 2009 – The Watermill Group announced today that it has acquired the Alsip manufacturing facility of the Madison Paper Company from Myllykoski Group. Watermill Group has renamed the newly acquired paper manufacturer FutureMark Paper Company in alignment with the company’s intent to cater to the fast-growing, underserved North American market for environmentally... More.

Lexington, Mass. – November 9, 2009 – The Watermill Group announced today that it has acquired the Alsip manufacturing facility of the Madison Paper Company from Myllykoski Group. Watermill Group has renamed the newly acquired paper manufacturer FutureMark Paper Company in alignment with the company’s intent to cater to the fast-growing, underserved North American market for environmentally friendly paper. FutureMark Paper Company has the only manufacturing facility in the United States capable of producing up to 100 percent recycled coated paper for magazines and catalogs.

Located just outside Chicago, in the heart of the U.S. print market, FutureMark Paper Company’s innovative manufacturing plant was designed and equipped to produce high-quality paper in the most environmentally sustainable way. The facility’s sustainable manufacturing practices and superior paper products – made with the highest percentage of recycled fiber available anywhere in the world – are attractive to magazine publishers, catalog companies and the growing number of other organizations interested in printing on environmental-grade paper. In addition to the traditional #5 coated paper, a new premium #4 grade and food label products have been recently introduced. All products are made from recovered fiber and have been very well received by the market.

“We were drawn to this paper manufacturer for its green technology and its ability to offer a one-of-akind product in an otherwise commoditized market,” said Steven Karol, Founder and Managing Partner of The Watermill Group. “We believe FutureMark Paper Company is well positioned and well capitalized
to make tremendous gains in the emerging market for environmentally friendly paper. We’re pleased to add FutureMark Paper Company to our investment portfolio.”

The Watermill Group brings strong assets to FutureMark Paper, including new management, an infusion of marketing expertise and capital investments to expand capacity. The new company will be led by newly appointed President and CEO Stephen Silver, an experienced chief executive with a successful track record of leading companies through marketing transformations that result in dramatically improved sales and profits. Most recently Mr. Silver drove the successful turnaround of office furniture manufacturer Teknion LLC. Prior to that, he held leadership positions in the printing and paper industry including President and CEO of Azon Corp. and North American President of International Paper’s Ilford
Photo business. FutureMark Paper intends to retain the Alsip workforce and key senior management including Steven C. Smith, VP and plant manager and Brendan Lesch, VP of Sales and Marketing.

“The management team at FutureMark Paper Company sees a very promising future in North America for environmental-grade paper,” said Steve Silver, FutureMark’s new chief executive officer. “Our existing customers can expect a seamless transition and count on FutureMark to provide the same high quality products and service for which Alsip is known. At the same time, we believe we can also attract the growing number of magazine, catalog and Sunday insert publishers who wish to use paper with a high percentage of recycled content – not just because it’s good for the environment, but because it’s also good for business. We’re looking forward to partnering with these companies to accelerate the market shift toward recycled magazine-grade papers.”

About The Watermill Group
For nearly three decades, The Watermill Group has been acquiring and improving companies. By
providing the resources and expertise to drive strategic and operating change, Watermill helps companies reach their true potential as thriving businesses capable of supporting jobs and contributing to their local communities. Watermill partners have over 140 years of combined executive management experience with extensive expertise in a wide variety of industries. The firm focuses on investing in companies where there is the opportunity to enhance performance through strategic change, operatingimprovements, or balance sheet realignments.

About FutureMark Paper Company
FutureMark Paper Company is an environmental paper manufacturer that produces high-quality paper with an unmatched level of recycled content. As the only company in North America capable of manufacturing up to 100 percent recycled coated mechanical printing paper, FutureMark Paper is committed to helping its customers achieve their environmental objectives without compromising on paper quality or performance. By delivering the future standard for environmental-grade paper today, FutureMark Paper is aggressively growing its position as the preferred paper partner for North America’s sustainability leaders. For more information, please visit www.FutureMarkPaper.com.

 

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Lexington, MA - Dale Okonow has many skills and talents as a business executive. He has been a President and Chief Operating Officer, a Managing Partner and a corporate lawyer. But his greatest value in this economy is his expertise in the “ turnaround” of businesses --acquiring, financing and operating manufacturing and distribution businesses and restoring them to... More.

Lexington, MA - Dale Okonow has many skills and talents as a business executive. He has been a
President and Chief Operating Officer, a Managing Partner and a corporate lawyer. But his greatest value
in this economy is his expertise in the “ turnaround” of businesses --acquiring, financing and operating
manufacturing and distribution businesses and restoring them to become viable entities which contribute
to the economy. That is why The Watermill Group, which has a proven track record of success in just
such turnarounds, as well as re-engineering companies with strong assets, has chosen this time to bring
Okonow back to the firm he helped found.

Okonow was on the ground floor of the Watermill Group’s predecessor company, HMK, twenty years
ago. Okonow served as Managing Partner of the private equity firm where he was responsible for
overseeing the acquisitions, financing and operations of several diverse industrial businesses throughout
the United States.

“Dale is an excellent addition to an already stellar team,” said Steve Karol, Managing Director of the
Watermill Group. “Watermill already has excellent relationships in the financial community, and Dale’s
presence will help us develop even broader connections. Those relationships are crucial in this unique
financial environment which actually provides significant new opportunities for Watermill to assist
companies with excellent assets which are experiencing challenges in this economy.”

“In one way this feels like returning to my roots,” said Okonow, “However, the financial markets are so
dramatically different from the last time that I was involved with Watermill that I think there are
opportunities the likes of which have never been seen in the financial world.”

Okonow was most recently the President and Chief Operating Officer of Sawyer Realty Holdings, LLC, a
fully integrated multi-family real estate investment and management firm. During Okonow’s tenure, the
company, along with institutional equity partners, acquired and managed over $2.25 billion of real estate
with over 35,000 rental units in twelve states and the District of Columbia. Okonow oversaw the day-today
operations at Sawyer which included acquisitions-related financing and divestitures as well as
property and asset management.

He started his career as an attorney with the law firm of Proskauer Rose, LLP, in New York, working as a
corporate lawyer with a focus on mergers and acquisitions and related financing. Okonow holds a BS
from the School of Hotel Administration at Cornell University and a JD and MBA also from Cornell. He
is a member of the Board of Trustees of the Jewish Family & Children’s Service of Greater Boston where
he founded the Parkinson’s Family Support Program. He also serves on the Visiting Committee of the
Dana-Farber Cancer Institute in Boston where he helped establish the Okonow/Lipton Family Lymphoma
Research Fund.

Okonow joins Watermill this month.
 

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Lexington, MA – On August 28th, 2008, Watermill Ventures sold Vertex Distribution (“Vertex”, the “Company”) to DXP Enterprises, Inc. (NASDAQ: DXPE), a national distributor of maintenance, repair and operating (MRO) products, equipment and services to industrial customers. Vertex, headquartered in Attleboro, Massachusetts, is one of the... More.

Lexington, MA – On August 28th, 2008, Watermill Ventures sold Vertex Distribution (“Vertex”,
the “Company”) to DXP Enterprises, Inc. (NASDAQ: DXPE), a national distributor of
maintenance, repair and operating (MRO) products, equipment and services to industrial
customers.

Vertex, headquartered in Attleboro, Massachusetts, is one of the largest North American master
distributors of corrosion resistant industrial fasteners and also carries a full line of metric
fasteners. The Company was founded by Joseph Jenks in the early 1800s. In 1972, David
Hirsch, the current Chairman and CEO, and his family acquired the Company, and expanded the
company’s expertise, product offerings and geographic reach.

When Vertex was acquired by Watermill in August, 2005, Watermill worked closely with
management to strengthen and further extend the company’s growth strategy. With Watermill’s
support and guidance, management pursued new initiatives including: (i) strategic acquisitions to
expand markets and products; (ii) new product line development; (iii) a new state of the art
technology resource; (iv) moving the east coast operations and corporate headquarters to a made
to order location; and (v) a pronounced increase in value-added services.

“Watermill’s expertise and support enabled us to significantly strengthen the Company and
organization,” said David Hirsch, Chairman and CEO of Vertex Distribution. “Last fiscal year,
Vertex Distribution achieved approximately $71.9 million in sales and $13.3 million in
EBITDA. In the last two years, we’ve added metric fasteners, rivets, hose clamps and other
products as well as invested in new infrastructure and facilities. With Watermill’s guidance and
the exceptional contributions of the Vertex team, we’ve achieved significant milestones together,
including the acquisition by DXP.”

“We have enjoyed a terrific partnership with Vertex’s management team in our joint pursuit of a
solid growth strategy,” stated Steven Karol, Managing Partner and Founder of Watermill
Ventures. “Now, Vertex has found a wonderful home with DXP. Watermill is proud to have
been a part of the Company’s development and to see it take this new step with DXP.”
W.Y. Campbell & Company served as financial advisor to the sellers in this transaction.

About Watermill Ventures

For nearly three decades, Watermill has been partnering with management teams to transform
and build great companies. By combining customized transaction structures with the resources
and expertise executives need to drive strategic and operating change, Watermill helps its
portfolio management teams thrive, and to generate extraordinary returns for all stakeholders.
Watermill partners have over 165 years of combined experience with extensive expertise in a
wide variety of industries. Watermill focuses on investing in companies where there is the
opportunity to enhance performance through strategic change, operating improvements, or
balance sheet realignments.

While we invest where we believe we can create value for all stakeholders, our primary expertise
is with manufacturing, distribution and facility or equipment-based services. We are experienced
in a variety of company situations and transaction types including corporate divestitures, familyowned
businesses, businesses or management teams in transition, businesses that have
experienced a recent recovery in performance, and companies that are underperforming relative
to their peers or turnaround situations.

For more information, contact:

Robert Ackerman
(781) 891-6660
backerman@watermill.com

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Lexington, MA– The Watermill Group announced today that it has acquired C&M Technologies Group, Inc. d.b.a. C&M Corporation (“C&M”), a leading manufacturer of custom cable, coil cords and cable assemblies. With manufacturing capabilities in the United States and Mexico, C&M is well positioned as a top supplier of specialized cabling solutions to... More.

Lexington, MA– The Watermill Group announced today that it has acquired C&M Technologies Group,
Inc. d.b.a. C&M Corporation (“C&M”), a leading manufacturer of custom cable, coil cords and cable
assemblies. With manufacturing capabilities in the United States and Mexico, C&M is well positioned as
a top supplier of specialized cabling solutions to Fortune 500 companies in the industrial, medical,
defense, multimedia, datacom and data collection industries.

Headquartered in Wauregan, Connecticut, C&M has transformed from a wire salvage business in its
formative years into a premier manufacturer of high performance cable products. William Mueller, Chief
Executive Officer of C&M, will continue to lead the management team.

“This transaction marks an important milestone in the development of the firm,” said Mueller. “Founded
in 1964 by my father, Warren Mueller, C&M has experienced significant growth under our stewardship
and is well positioned in the current marketplace. We are confident that the partnership with Watermill
Group will be a great asset in supporting our management team and further increasing the level of service
and value provided to our customers.”

Timothy Eburne, Partner at The Watermill Group, added “C&M has been manufacturing customized
cabling solutions for leading OEM technology companies for four decades. We look forward to
partnering with management and the employees to further improve operating performance at C&M and
implement a successful growth strategy for the future.”

Steven Karol, Founder and Managing Partner of The Watermill Group, said “We are excited about the
addition of C&M to our investment portfolio. The company’s strength of engineering and component
design in the manufacturing of custom cable and cable assemblies provide a strong value proposition to
its customers.”

About The Watermill Group

For nearly three decades, The Watermill Group has been partnering with management teams to transform
and build great companies. By combining customized transaction structures with the resources and
expertise executives need to drive strategic and operating change, Watermill helps its portfolio
management teams thrive, to generate extraordinary returns for all stakeholders. Watermill partners have
over 165 years of combined experience with extensive expertise in a wide variety of industries. We focus
on investing in companies where there is the opportunity to enhance performance through strategic
change, operating improvements, or balance sheet realignments.

C&M Corporation

C&M Corporation is a vertically integrated manufacturer of custom cable, coil cords and cable
assemblies. As a worldwide, RoHS compliant cable and cable assembly manufacturer of advanced power
and signal transmission cable solutions, C&M employs the most current processes for lean manufacturing
and cycle time reduction to deliver superior cost-competitive cables and cable assemblies faster than
anyone else in the industry.

CONTACT: Nancy J. Sterling, APR
ML Strategies, LLC
(617) 348-1811
njsterling@mlstrategies.com

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