Crain's Cleveland Business

By JAY [email protected]

Cuyahoga County Executive EdFitzGerald maintains that Gov. JohnKasich is plotting to hold a fast-tracked second Inner Belt bridgehostage to a plan to privatize, orotherwise monetize, the Ohio Turn-pike.

Asked about the governor’s plan

to move up construction of the second Cuyahoga River span andseveral other projects in other partsof the state, Mr. FitzGerald said hefears Mr. Kasich is holding the earlycompletion of those projects andthe potential of other road work innorthern Ohio out as a carrot.

“And then, surprise, he’s going tosay, ‘None of those are going to get

By TIMOTHY [email protected]

The economic meltdown led to record-breaking enrollment surges at NortheastOhio’s community colleges, but the slowlyimproving jobs climate is resulting in fewerpeople flowing through their doors.

The economic recovery coupled with an expected decline in high school graduates dueto Northeast Ohio’s stagnant and aging pop-ulation has the region’s community collegesand university branch campuses adopting newways to recruit students and, perhaps moreimportantly, keep the ones they already have.

“Sometimes we lose sight of how we canimpact retention,” said Karen Miller, vicepresident of enrollment management and

student affairs at Cuyahoga Community Col-lege, the region’s largest community college,which stomached a 3.83% decline in enroll-ment this fall.

“If we really impacted retention and focusedon that, we wouldn’t have an enrollmentproblem,” Ms. Miller said. “We wouldn’t have toworry as much about that front-end number.”

Early numbers compiled by the Ohio Boardof Regents suggest that enrollment at all theregion’s community colleges and universitybranch campuses is headed south for the sec-ond straight year, with the exception of StarkState College of Technology in North Canton,which saw a slight uptick. On the flip side, enrollment at the region’s public four-year institutions is mixed, with Cleveland State and

See DROP Page 18

$2.00/OCTOBER 22 - 28, 20120

7447083781

741

NEW

SPAP

ER

It’s all in the family forthese businesses

We ask 10 Northeast Ohio familybusinesses — including the crew at Allstate Hairstyling & Barber College, pictured above — what’skept them running all these years.PAGE 11

PLUS:■■ More manufacturers investing

in new equipment. PAGE 3

INSIDE

VOL. 33, NO. 41

MARC GOLUB

The lunchtime crowd at the Student Services building on Tri-C’s metro campus last Thursday.

Firms heap on debt topay out big dividends

Enrollments drop atcommunity collegesReversal in years-long growth shifts focus on retention

FitzGerald: New Inner Beltpart of gov’s turnpike ploy ODOT: Kasich not out to play ‘political football’

See TURNPIKE Page 10

By CHUCK [email protected]

Three local companies are plan-ning to borrow a total of $1.7 billionand give much of it directly to theirshareholders.

And they aren’t alone. Those threecompanies — content managementsoftware firm Hyland Software Inc. ofWestlake, medical supplies distrib-utor AssuraMed Holdings Inc. ofTwinsburg and aircraft parts maker

TransDigm Group Inc. of Cleveland— are part of a wave of U.S. busi-nesses that are borrowing money topay big dividends, according to aninvestment banker and two lawyerswho specialize in corporate deals.Aluminum products producer AlerisInternational Inc. of Beachwood alsois raising $400 million in debt andmight use some of it to pay dividends.

“I will tell you, it is hot right now,”said Jay Alicandri, a partner in the

See RECAPS Page 17

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22 CRAIN’S CLEVELAND BUSINESS WWW.CRAINSCLEVELAND.COM OCTOBER 22 - 28, 2012

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STICK AROUNDPrivate-sector workers are staying in their jobs longer, but they have quite a bitof ground to make up to catch their public-sector counterparts. The federalgovernment reports the median number of years that workers in the privatesector had been with their current employer was 4.6 as of January 2012, upfrom 4.4 years in January 2010. Workers in the public sector had almost doubled the median tenure of private-sector employees, 7.8 years versus 4.2years. The longer tenure among workers in the public sector is explained, to alarge extent, by demographics: About 75% of government workers are age 35and older, compared with 60% of private-sector workers. Here’s how tenurebreaks down by select industry:

Industry Median tenure Industry Median tenurePrivate sector total 4.2 Public sector total 7.8

Manufacturing 6.0 Federal government 9.5

Transportation/utilities 5.6 State government 6.4

Info. technology 5.4 Local government 8.1

Education/health 4.4 Total, all industries 4.6


OCTOBER 22 - 28, 2012 WWW.CRAINSCLEVELAND.COM CRAIN’S CLEVELAND BUSINESS 3

INSIGHT

THE WEEK IN QUOTES“Everybody’s con-cerned with who’s going to be the nextpresident and howmuch the tax rates aregoing to be.”— Jay Alicandri, a partner in thecorporate securities group at lawfirm Dechert LLP of New York.Page One

Smaller companies start moving their servers into the ‘cloud’Seeking reliability, savings, businesses use hardware owned by specialists

By CHUCK [email protected]

Local companies aren’t just talking about moving to “the cloud”— they’re doing it.

In large numbers, small busi-nesses in Northeast Ohio havestarted moving many computingfunctions off the servers that theykeep in the back room. Now they’re

starting to use the Internet to tapinto computer equipment ownedand managed by other companies.

Bigger companies are movingslower, but they’re making themove, too.

The trend has picked up majormomentum over the past year anda half, according to several informa-tion technology service providerswho spoke with Crain’s.

Nearly one-quarter of the smallbusinesses that work with theTechnology Partners division atSkoda Minotti in Mayfield Villagehave thrown out almost all of theirservers, or they’re in the process ofdoing it, said Brian Rosenfelt, aprincipal with the division. Manymore Skoda Minotti clients are cre-ating hybrid networks, using someof their own servers and some owned

by other companies, he said.The concept of moving to the

cloud has become so popular thatnow it’s near the top of the agendaat almost every client meeting Mr.Rosenfelt has.

“People are really asking for itmore now,” he said. “We recognizethat, in some cases, if we don’t leadwith it, we’re not going to get thebusiness. We’re walking into salesmeetings now where people aresaying, ‘We need to move to thecloud. What have you got?’”

Skoda Minotti is one of many local IT service providers that haveadded new services over the pastyear or two aimed at helping com-panies make the transition. The accounting and business servicesfirm has built its own server bank,which is being called “The Cleve-land Cloud,” in the downtown Cleve-land data center owned by Blue-Bridge Networks LLC. The twocompanies plan to jointly marketthe service to small businesses

VC infusionwill quicken fast growthat HeartLabCleveland firm that helps IDheart attack risks raises $15MBy CHUCK [email protected]

If you want to make a fast-growing company groweven faster, giving it nearly $15 million might help.

Cleveland HeartLab Inc. has raised $14.7 million inventure capital in a deal led by Mutual Capital PartnersLLC of Cleveland.

The company, which tests blood samples and otherspecimens to help doctors determine whether a patientis at risk of a heart attack or other medical problems, willuse the money to expand its sales and marketing effortsand to commercialize new tests, said CEO Jake Orville.

Cleveland HeartLab already has done a lot of expanding.Founded just three years ago, the company today employs 112 people. All but 18 work at its headquarterson Carnegie Avenue in Cleveland’s Midtown district.

The company has hired 39 people in 2012 alone. Thisyear’s sales are projected to beat last year’s numbers by 30% to 40%, said Mr. Orville, though he would notprovide specific dollar figures or say how many peopleCleveland HeartLab might hire with the new money.

The company has several proprietary tests licensed fromacademic medical centers. Its flagship test, licensedfrom the Cleveland Clinic, checks a patient’s blood foran enzyme called myeloperoxidase. Multiple studieshave shown that patients are at greater risk of sufferinga heart attack if they have a high level of the enzyme intheir bloodstream.

Demand for the company’s tests “continues to bestrong,” Mr. Orville said. He described how trucks con-stantly are dropping off foam boxes packed with samplesto be tested and shipped back to the doctors that sentthem.

See CLOUD Page 7

See HEARTLAB Page 18

See AUTOMATION Page 17

AUTOMATEDRESPONSE

MCKINLEY WILEY

Bud Industries vice president of sales Josiah Haas (left) and president Blair Haas at Bud’s Willoughbyheadquarters

FILE PHOTO/MARC GOLUB

Cleveland HeartLab president and CEO Jake Orville

“We’re talking abouttwo completely different issues. EdFitzGerald is makingit a political football,and at ODOT we don’thave time for that.”— Steve Faulkner, press secre-tary for the Ohio Department ofTransportation. Page One

“I think (new Brownsowner Jimmy Haslam)should restore credi-bility by taking a personal interest inthe team, as he seemsto be doing, and buildthis team slowly withgood-quality, ethicalplayers.”— From a Big Issue response.Page 9

“Transitions don’twork if the older generation doesn’t let the younger gener-ation take over. I said to (son) Bruce,‘Tomorrow, you’re thedriver and I’m thepassenger.’”— Henry Goodman, White DoveMattress Ltd. Page 15

With dearth of skilled workers, manufacturers turn tonew technologies, equipment for operational effiencies

By GINGER [email protected]

Automation, long a way for manufac-turers to cut costs and improve effi-ciency, now is becoming a solution tothe problem created by an ever-growing

shortage of skilled workers. Bud Industries Inc., a Willoughby-based

maker of electronics enclosures, is doing morework faster and with fewer people thanks to newautomated equipment it’s purchased.

“One of the challenges manufacturing has inAmerica is how difficult it is to find skilled labor,” said Blair Haas, Bud president and third-generation owner. “Our work force has aged.Getting people to operate our still good equip-ment has been almost impossible.”

Because the company has struggled in findingskilled workers, it instead invested in a $1 millionsteel bending machine. The machine allowsBud to cut setup time from 30 minutes to twominutes, giving it greater capacity for new orders without hiring new workers.

“We use less skilled employees as time goesby to continue to operate and produce the prod-ucts,” Mr. Haas said. “It’s much more automated.It’s much more high tech.”

Bud Industries isn’t the only company auto-mating its manufacturing process as a means of



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Volume 33, Number 41 Crain’s Cleveland Business (ISSN 0197-2375) is published weekly, except for com-bined issues on the third week of May and fourth week of May, the fourth week of June and first week of July,the third week of December and fourth week of December at 700 West St. Clair Ave., Suite 310, Cleveland,OH 44113-1230. Copyright © 2012 by Crain Communications Inc. Periodicals postage paid at Cleveland, Ohio,and at additional mailing offices. Price per copy: $2.00. POSTMASTER: Send address changes to Crain’sCleveland Business, Circulation Department, 1155 Gratiot Avenue, Detroit, Michigan 48207-2912. 1-877-824-9373.

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EXECUTIVE SEARCH DIRECTORYCrain’s Cleveland Business will pub-

lish the first Directory of ExecutiveSearch Firms and Staffing Firms inour end-of-year publication, The Bookof Lists, as well as on our website,www.CrainsCleveland.com.

There is no charge to be includedin the directory, but we require that a

brief survey be submitted. Don’t missthis chance to get your company’s in-formation in front of business readers.

The deadline to submit informationis this Wednesday, Oct. 24.

You can access the survey atwww.CrainsCleveland.com/section/executive_search_firms.

Riverside projecting record yearExpected exits, returnswell above norm forprivate equity outfit

“Things at Riverside don’t happenby accident so much anymore,” hesaid.

Even before an acquisition isclosed, Riverside’s people have developed an investment thesis andstrategy. By the time the firm hasowned a business for six months, itsprofessionals have completed astrategic plan for the entire hold period, which on average is five toseven years, Mr. Kohl said.

But Riverside isn’t just settingrecord exits in 2012.

The firm, founded in 1988, investsin companies with enterprise valuesof up to $200 million. This year, it’sdone a record number of add-onacquisitions — 18 and growing —and will close its 300th acquisition.Its portfolio as of last week com-prised 73 companies globally.

Mr. Kohl attributed the increasedacquisitions to looming tax increasesthat encourage owners to sell now,the economic roller coaster manybusiness owners are tired of riding,and Riverside’s marketing efforts.

“We come to (business owners)and say, ‘Hey, here’s a fair amountfor your company,’” he said. “They’regoing to think about that.”

The hunt for winnersMany industry insiders say it

makes sense that private equityfirms would be selling companies ata good clip. For one, firms likely deferred some exits following therecession, said Mark Mansour, senior managing partner of MCMCapital Partners, a Beachwood pri-vate equity firm.

“You needed to re-establish yourearnings history, put some distancebetween bad numbers and betternumbers,” Mr. Mansour said.

Plus, he said, “The preferencewould be to do (an exit) this yearversus next year,” in part becausecapital gains tax hikes are expectednext year, he said. Also, if a privateequity firm is going to raise funds inthe next year or two, “putting somewins on the board” is a priority, Mr.

Mansour said.MCM Capital’s exit activity may

end the year slightly up, Mr. Mansour said. The firm, which hedescribed as a “low-volume shop”investing in companies with trans-action values of less than $50 mil-lion, has completed two sales andcould complete a third before year-end, up from two in most years. Altogether, it owns six companies.

Industrywide, the total numberof exits globally totaled 863 duringthe first three quarters of 2012,down 4% from 902 in the year-agoperiod. However, that number is up43% from 605 exits in the first threequarters of 2010 and is more thandouble the 365 in the like period in2009, according to data from Preqin,a provider of information for the alternative assets business.

While the first quarter of this yearwas “relatively subdued” for exits,the volume and value of exits in thequarters that followed “have probablyexceeded expectations that peoplemay have had at the start of theyear,” said Manuel Carvalho, privateequity deals manager with Preqin.

Inventory issuesHowever, in the view of James M.

Hill, the deal volume of 2012 hasbeen underwhelming. The chair-man of the private equity practice atBenesch, Friedlander, Coplan &Aronoff LLP, Mr. Hill said the antic-ipated rush to sell businessesspurred by looming tax increaseshasn’t materialized.

“There’s very little inventory —not a lot of people selling their com-panies right now,” he said. Mr. Hillbelieves private equity firms withcompanies that are performing wellwould be wise to sell, given the“dearth of inventory,” he said.

Mr. Mansour does not expect thesame level of exit activity next year.He said the uptick that has occurredthis year is because some sales weredelayed into 2012 and others weremoved up for fear of a less friendlytax environment. ■

By MICHELLE [email protected]

Cleveland’s most prolific privateequity firm is on track for its mostprolific year yet in terms of compa-nies sold and returns generated forinvestors.

The Riverside Co., which marks its25th year in business in 2013, expectsto exit, or sell, close to 15 companiesby year-end, said co-CEO StewartKohl. Fifteen would be four morethan Riverside’s previous record of11 companies sold, which was set in2010. The firm already has tied itsprevious record.

In addition, the firm, which raisescapital from investors and uses themoney to buy, operate and sell com-panies to generate returns, expectsto return to its investors about $700million this year. That amountwould be well above the $200 millionto $500 million it returns in a typicalyear, Mr. Kohl said — and would be areturn of more than double the in-vestors’ money in those companies.

“As a firm, we have grown over theyears, and as you get bigger … itwould make sense you would exitmore (investments) each year,” Mr.Kohl said. “We do think it’s a prettygood time to sell. Fortunately, wehave a lot of companies that are ripeand ready to sell.”

Mr. Kohl also attributes the recordyear to processes Riverside imple-mented in the last few years that drivefaster growth at its portfolio compa-nies and lay a more intentional routeto an exit.


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GCP pushes biz backers on school voteBy TIMOTHY [email protected]

The Greater Cleveland Partnershipis mounting its final pitch to thebusiness community to support afour-year, 15-mill operating levythat, if approved, would pump moremoney into the beleaguered Cleve-land Metropolitan School District.

With less than a month to go until Election Day and early votingalready under way, the local cham-ber of commerce recently dispatcheda “toolkit” to its members to distributeto their employees. The toolkit isloaded with information about theneed for the levy’s passage, whichwould be the district’s first tax increase in 16 years.

GCP also is offering to dispatchmembers of the levy campaign toarea businesses to drum up supportfor the measure.

“We must turn around ourschools, and we need the businesscommunity’s support to make thathappen,” GCP president and CEO JoeRoman said in a recent interview.

The information blast also includesa series of video endorsementsfrom some of the organization’sheaviest hitters, including Sherwin-Williams Co. chairman and CEOChristopher Connor; Fred Nance,the regional managing partner forSquire Sanders; Forest City Enter-prises chairman Charles Ratner,and Mr. Roman.

In one video, Mr. Ratner asks

business leaders to make a financialcontribution to the levy campaign,educate their employee base aboutthe issue and place signs in supportof the levy around their workplaces.

“If we raise graduation rates, sendmore students to college and ensurethe best teachers in our classrooms,that will make Cleveland’s futurebrighter,” Mr. Ratner said in the video.

Mr. Roman said the Council forSmaller Enterprises, the small busi-ness arm of GCP, is doing some-thing similar with its members.

“I think there’s as strong story totell,” Mr. Roman said. “Most of theseissue campaigns that are tax in-creases, you’ve got to make surepeople get out to vote. I feel goodabout where we’re headed.” ■

Former ClinicWestlake sitehas new ownerBy STAN [email protected]

A partnership associated with aprincipal of Equity Trust Co. in Elyria paid $3.75 million to buy thebuilding that housed the formerWestlake Family Health Center fromthe Cleveland Clinic Foundation.

Cuyahoga County land recordsshow an entity known as 30033Clemens LLC on Oct. 15 bought thefive-story, 69,000-square-foot building,which is visible from Interstate 90. Thebuilding is at 30033 Clemens Road.

Richard Desich, founder andchairman of Equity Trust, is listed asthe trustee of 30033 Clemens LLC,according to state records in Florida,where 30033 Clemens is incorporated.The records list Equity Trust’s 225Burns Road address in Elyria as theprincipal address and mailing addressof 30033 Clemens LLC.

Matt Graban, a Baker & Hostetlerattorney in Cleveland who said hehas done work for the Desich family,said the buyer is a privately heldpartnership managed by Mr. Desichand is a different entity from EquityTrust. He returned calls from Crain’smade to Mr. Desich and JeffreyDesich, Equity Trust CEO.

Asked how the new ownershipplans to fill the empty space in the30-year-old building or if EquityTrust itself might occupy some of it,Mr. Graban declined comment.

Equity Trust is a growing concern.Its website indicates that it has morethan 130,000 clients in 50 states, andit administers more than $11 billionin retirement plan assets. A Septem-ber 2007 Crain’s story on EquityTrust said it held nearly $3 billion inassets and had 167 employees.

Robert Parry, Westlake planningand economic development director,said the suburb is negotiating with acompany for an incentive to locatein the property. However, he declinedto identify the company because ithas not filed a written application.

CBRE Group Inc.’s Cleveland office listed the property for theCleveland Clinic with an asking priceof $5.5 million, according to onlinerealty data provider CoStar. DavidBrowning, CBRE Cleveland managingdirector, declined comment on thesale. He said CBRE signed a nondis-closure provision as part of its listingagreement with the Clinic. ■


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GOING PLACESJOB CHANGES

ARCHITECTUREKA ARCHITECTURE: Javier Cora-Hernandez to senior project architect;Eric Greenberg to architect.

DISTRIBUTIONACTIVE PLUMBING SUPPLY CO.:Tracy Smearman to director, finance and administration.

EDUCATIONBALDWIN WALLACE UNIVERSITY:Aimee Bell to director of annual giving; Debbie Miller to senior advancement officer; Eric Stephensto advancement officer. NEW HORIZONS COMPUTERLEARNING CENTERS: ShawnKrunich to strategic account manager.

FINANCEFIFTH THIRD BANK, NORTHEASTERNOHIO: Jeff Ferry to vice president,commercial middle market relationshipmanager; Shanda Miller to vice pres-ident, business banking relationshipmanager.KEYBANK: Michael Moss to directorand head, Higher Education and Non-profit segment.OHIO COMMERCE BANK: Sharon

A. Loser to operations clerk.

FINANCIAL SERVICEBOBER MARKEY FEDOROVICH:Chad Basquin to manager; JeanineBlack, Jessica Tepus, Shawn Carlson and Mindy Marsden to supervisors; Kristopher Brown to senior accountant.BRUNER-COX LLP: Jeffrey S.Buckshaw and Laura A. King to assurance services senior managers;Matthew L. Douglas to tax senior associate; Michele M. Monter to assurance services director; NathanR. Remington to assurance servicessenior associate; Lisa A. Sturgill toassurance services associate. FIRSTCREDIT INC.: Kelly Thrasher,Jonathan Riley, Heather Phillipsand Julie Robinson to patient account managers. FIRSTCREDIT INC./REVCARE/PAYMED SOLUTIONS: Terri Fooreto client support and commercial insurance billing specialist.PEASE & ASSOCIATES INC.: Chris-tine Sanducci to senior accountant;Carly Roberts to staff accountant.SS&G: Kevin White and GregoryMiller to associates.REVCARE/PAYMED SOLUTIONS:John Rogers to manager of self-payservices.

HEALTH CAREMETROHEALTH: Dr. Reema Gulati to division director, PediatricGastroenterology.PRIORITY HOME HEALTH CAREINC.: Tanya Simmons to client service representative.

HOSPITALITYBAR 25 LLC: Michael Berkowitz toassistant general manager, BierMarkt, Bar Cento, Market GardenBrewery and Nano Brew Cleveland.MARKET GARDEN BREWERY:Patrick Daniels to assistant brewer.NANO BREW CLEVELAND: KevinJoeken to chef; Andy Tveekrem tobrewmaster.

INSURANCESEIBERTKECK INSURANCE: KarlHenley to vice president.

LEGALBROUSE MCDOWELL: Michael G.Craig, Gabrielle E. Kelly, Laura E.Kogan, Rachael E. Mauk, DavidSporar and Kate B. Wexler to associates. TUCKER ELLIS: Stephen Bittenceto counsel.

LOGISTICSPACKSHIP USA: Dan Auxter to director, business development.

StephensMillerBell

MossMillerFerry

MANUFACTURINGTELEFAST INDUSTRIES: SteveMrazik to operations manager.

MARKETINGADCOM GROUP OF COMPANIES:Dawn Southard to vice president,marketing. DIX & EATON: Kevin A. Ziegler tosenior account executive; Steve Hartto art director.THUNDER::TECH: Tom Valentino tocommunications specialist; MadisonBender to social media specialist;Melanie Eyerman to communicationsteam manager.

REAL ESTATESAFEGUARD PROPERTIES: SandyOpacich to vice president, humancapital.TRANSACTION REALTY: DavidAronovich to sales associate.

SERVICE1-888-OHIOCOMP: Dr. Matthew E.Levy and Dr. D. Philip Stickney tomedical directors.

STAFFINGDYNAMIX GROUP: Rudy Donatellito research associate.

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Cloud: Larger companies may not benefit as much from a move

Information technology serviceproviders in Northeast Ohio are seeing more desire among theirclients to move to the cloud — another way of saying they’re storingdata and using software housed onservers owned by someone else.

Skoda Minotti’s TechnologyPartners division said nearly aquarter of its clients, who tend to besmall businesses, are discardingtheir servers, while some are creating hybrid networks.

Bluebridge Networks LLC,meanwhile, is hosting a server bankbuilt by Skoda, and more clients areusing Bluebridge’s new service,which allows companies to operatetheir entire computing systems onBluebridge hardware.

Expedient CommunicationsInc., in Garfield Heights, is seeingmore clients take advantage of itsservice allowing companies to leasespace on its servers.

through a partnership that is sched-uled to launch on Dec. 1, Mr.Rosenfelt said.

BlueBridge allows customers toinstall their own servers in its down-town data center, but in mid-2011the company began allowing themto run their entire computer systemson hardware owned by BlueBridge.The midsize businesses and largercompanies that make up Blue-Bridge’s main client base have beenusing the new service, but mainlyfor commodity computing functions,such as web hosting, email, datastorage and disaster recovery, saidKevin Goodman, managing directorand partner at BlueBridge.

Mr. Goodman said more compa-nies will move sensitive informationinto the cloud as evidence of its effectiveness builds.

“In time, you will see those thingshappen,” he said.

Stress relieverBryan Smith is seeing the same

trend at Expedient CommunicationsInc., a Pittsburgh company thatowns several data centers, includingone in Garfield Heights.

Expedient began letting localcompanies lease space on its com-puter servers about 2½ years ago.Over the past 12 to 18 months, how-ever, the popularity of that servicehas shot up “like a hockey stick,”said Mr. Smith, regional vice presi-dent for Expedient.

Now that offering — which fallsinto the “infrastructure as a service”category of cloud computing — accounts for about one-third of Expedient’s revenue, in NortheastOhio and across the nation.

“It’s by far the fastest growing

part of our business,” Mr. Smithsaid.

The Moss Corp. of Independenceuses Expedient’s Garfield Heightsdata center to run its new websiteand many of its software programs,said Tony Catalano, data architect forMoss, which has about 25 employees.Those programs include internaldatabases, software used by its in-house insurance agency and aprogram used to buy and sell salesleads to insurance companies, he said.

Moss made the move because it wants to focus on its core busi-ness, which has nothing to do with installing and managing computerequipment, Mr. Catalano said.

“Looking back, you’re so happyyou don’t have to deal with all theadditional overhead,” he said.

That’s a big reason why U.S.Compliance Systems in Tallmadgehas moved some of its computingfunctions into the cloud, said KeithDague, president of the consultingfirm, which helps businesses com-ply with various regulations.

The eight-employee firm about ayear ago began using Microsoft’sOffice 365 program, which is a suiteof online software products thatmimic some of Microsoft’s mostpopular programs, including its Exchange email system, its Share-Point collaboration software andonline versions of programs likeWord and Excel. A few months ago,U.S. Compliance moved its publicwebsite onto servers owned byRackspace, a large data center com-pany in San Antonio.

The move has helped U.S. Compliance improve the reliabilityof its website and its email, which isnow much easier to access via mobile devices, Mr. Dague said. It

continued from PAGE 3 also should save the company somemoney and some headaches, headded.

“It’s going to cut some seriousstress,” he said.

Think hybridBigger companies have been

slower to make the move. For them,the transition is much more complexand they have more at stake, saidDale Phillips, chief information officer at MCPc, a Cleveland-basedprovider of computer hardware andIT services.

They should take their time, because not everyone is better offmoving to the cloud, Mr. Phillipssaid. A company that has a lot ofemployees and computer equipmentin a single building might want tothink twice about moving too manyfunctions to someone else’s datacenter, since the company’s internalnetwork likely is a lot faster than itsInternet connection, he said.

MCPc a year ago began offering aservice that would allow customersto avoid that issue: The companynow helps customers build serverbanks located on the customer’sproperty, using equipment ownedand maintained by MCPc.

“It’s not one-size-fits-all,” Mr.

Phillips said. “It’s often a hybrid.”Still, he said, “everybody’s talking

about it.”Including larger companies.

Although Forest City EnterprisesInc. still relies heavily on the serversat its headquarters in downtownCleveland, almost all of them likelywill be gone in a few years, saidBruce Garlitz, the company’s directorof IT.

“I don’t think it’s going to be 10years,” he said. “I think it’s going to bemore the three- to five-year range.”

The real estate giant moved itswebsite into BlueBridge’s data center about three years ago, and inJuly it started using hardware thatExpedient owns at a data center inColumbus to back up the systems atForest City’s headquarters.

Mr. Garlitz said the company nextyear might implement Microsoft’sOffice 365 software suite, which fallsinto the “software as a service” cat-egory of cloud services. If ForestCity moves to Office 365, employeesstill would keep copies of Word, Excel and other key programs ontheir personal computers, he said.

The company likely will get rid ofmany of its servers once SAP comesout with a solid online version of theenterprise resource planning system

UP IN THE CLOUDS

Forest City uses for accounting andother internal purposes, Mr. Garlitzsaid.

“Before we buy anything, we see ifthere’s a cloud option for it,” he said. ■

Employers increasinglyoffer to buy out pensionsBy MARY BETH FRANKLINInvestment News

Employers continue to move awayfrom traditional pension plans, replacing them with 401(k) plansthat shift the burden of saving forretirement and managing investmentrisks to employees. And they’re increasingly offering to buy out pensions with a lump-sum payment— a move that may not be in thebest interest of retirees.

While the availability of pensionbenefits to new, and sometimes existing, employees has been de-clining for decades, the latest changein employee retirement security focuses on the distribution end. Someemployers, led by auto giants Gen-eral Motors and Ford, have offered tobuy out the monthly pension bene-fits of existing employees.

As a result, workers are becomingmore responsible for saving, investingand now distributing their retire-ment nest eggs.

Few are equipped to do it on theirown, which should create more opportunities for financial advisersranging from those who work withemployers to set up, monitor andadvise plans, to those who workwith individual clients to coordinatetheir investment strategies and designincome distribution plans.

New reports from global profes-

sional services firm Towers Watsonand the Pension Rights Center listthe latest players in the pension de-risking arena.

The Towers Watson analysis foundthat only 30 Fortune 100 companiesnow offer a defined benefit pensionplan to newly hired salaried workers.That’s down from 33 companies lastyear and is less than half the num-ber of firms that offered pensions in2005. Back in 1985, 90% of Fortune100 companies offered traditionalpensions to their new employees.

Now the tables are turned. Today,70 of the country’s biggest 100 employers offer only a defined con-tribution plan, such as a 401(k), tonew hires, compared with 67 com-panies at the end of last year and 32companies in 2005. Back in 1985, a mere 10 companies offered only401(k)-type plans to new employees.

Meanwhile, a growing number ofemployers are asking some retireeswho already are receiving pensionsto choose between keeping theirmonthly benefit check and swap-ping it for a lump sum.

The Pension Rights Center warnsthe only situations in which a lumpsum should be seriously consideredare those in poor health, who maynot live long and who do not needto provide income for a survivingspouse, or those who have other ad-equate sources of secure income. ■


Last week brought out the best andthe, well, not-so-best in the firstdebate between U.S. Sen. SherrodBrown and his Republican chal-

lenger, Ohio Treasurer Josh Mandel.In the “best” category was the work

done by the host — The City Club ofCleveland — which staged an event thatattracted a sellout crowd of1,300 and many news mediarepresentatives to the Renais-sance Hotel ballroom. Debatesare part of the rich 100 years ofThe City Club, and that its small staff did this in the sameweek it hosted another bigcrowd to celebrate the club’s100th anniversary was nothingshort of remarkable.

While I hesitate to pick outthe worst moment, I would say that nei-ther of the two candidates offered muchto differentiate themselves from whathad been part of their messaging allalong in this hotly contested race. Sen.Brown, a longtime Democratic Party officeholder, avoided specifics in some

questions from the reporters’ panel, asdid his opponent.

The highly partisan crowd didn’t helpthe mood much, either, drowning outthe moderator and the other candidatewith cheers for their own man. Somesneered and laughed sarcastically atcomments made by the candidates.

One of the few specific ideasI gathered was from Mr. Mandel,who advocated closing U.S.military bases in Europe as away to cut the defense budget.The rest was more of the samethat we’ve heard from eachman’s campaign ads.

There are two more debatesleft before the election. Let’shope that the next two help Ohiovoters make a choice that’s not

based on personality, or party, but onthe pressing issues we face in Ohio andAmerica.

****AND SPEAKING OF POLITICS, it appears

the members of our congressional dele-gation are too busy this campaign season

to answer their mail.An enterprising group of journalism

students at Kent State University sent acertified letter to each of the 20 membersof Congress from Ohio. The letter askedone question: The students wanted toknow what other health care systems inthe world each lawmaker had studied inorder to help frame the future of ours.

You know — that little piece of legisla-tion known as the Patient Protection andAffordable Care Act? You might haveheard it mentioned a few times in thispresidential campaign.

Apparently, the students received justone thoughtful response — from Rep.Steve LaTourette, the Geauga CountyRepublican who’s retiring. He actuallyincluded several documents he used indeciding how to vote on the law nowknown as Obamacare.

A video produced by the students ended with a polite but impactful bit ofadvice: “The approval rating for Congressis at an all-time low. Maybe that rating wouldgo up if you would respond to your mail.”

Hard to argue with their logic. ■


First and 10T

he children of Israel wandered 40 years inthe desert before they finally entered thePromised Land. Fans of the ClevelandBrowns have waited about half that long to

see competitive football return to the shores of LakeErie — and for an owner who seems passionateabout winning.

In Jimmy Haslam, they definitely have the latter.Precisely when the new owner’s passion translatesinto a consistent playoff contender remains to beseen. However, we doubt Browns fans will be waitingto see their team play football in January anywherenear as long as the Israelites waited to cross the riverJordan.

Last week, Mr. Haslam officially became the des-ignated savior of a team that has been stuck in expansion franchise mode, even though it has been13 years since the Browns returned to the NFL as areplacement for the team that flew the coop to Baltimore after the 1995 season. The unanimous approval by NFL owners of Mr. Haslam’s $1 billionpurchase of the Browns from Randy Lerner has injected hope in a fan base that has had little reasonfor optimism for nearly two decades.

We believe it is hope that is not placed falsely.Yes, Mr. Haslam is an astute businessman who

has enjoyed success in building the Pilot Flying Jchain of highway truck stops. And yes, he knows ittakes giving customers a quality product to keepthem coming back for more. Then again, so do people who aren’t billionaires.

There is a critical piece of business acumen Mr.Haslam brings with him to this new endeavor,though, that seemingly was lost on Mr. Lerner andeven on his late father, Al, the original owner of thenew Browns. It is the benefits of consciously creatinga personal connection with your customers.

Mr. Haslam has been a physical presence forweeks around Cleveland and the Browns. He hasbeen interacting with players, coaches, politicians,the media, and, most importantly, the fans.

He talked to them at training camp. He has sat withthem in the Dawg Pound. Heck, he even was thereto celebrate the team’s first victory in nearly a yearwhen the Browns beat the Bengals two Sundays ago.

In only three months, the Tennessee native hasput a face on the team’s ownership. And that countsfor something among people who shell out thou-sands of dollars for personal seat licenses and payhundreds and even thousands more for tickets.

Fans want to know that the person who signs thepaychecks feels as impassioned as they do about theteam they support. Mr. Haslam gets that.

Last Wednesday, the day after NFL owners OK’dthe deal, Mr. Haslam took out full-page ads in ThePlain Dealer and Akron Beacon Journal to deliver amessage to Browns fans. That message: He valuesthe commitment of the fans, and he can’t wait to getstarted, “not just with this football team, but alsowith being active participants in the communities ofCleveland and Northeast Ohio.”

It is winning that ultimately will end the fans’frustrations. In the meantime, it’s great to have anowner who’s letting fans know the love affair withtheir team is not a one-way street.

FROM THE PUBLISHER

LETTERS

BRIANTUCKER

The City Club alone shines in debate

Take redistricting away from politicians■ Here are some good reasons to vote forIssue 2, the redistricting constitutionalamendment on the ballot this fall:

The League of Women Voters hasstudied for decades the problem of howbest to form congressional and GeneralAssembly districts.

Over time, politicians have proventheir inability to create fair districts.

Special interests, unaccountable tovoters, have more influence than votersin how districts are created.

Districts formed by legislators afterthe 2010 Census offer voters the mostegregiously gerrymandered districts ever.Consider two Cuyahoga County districts:District 9 now stretches from Toledo toCleveland and District 11 reaches fromLake Erie deep into Akron. Passage of Issue 2 would set up a system that endscontorted, gerrymandered districts.

The League of Women Voters calls fora fair, nonpartisan plan that reflects howOhioans vote, minimizes splits of coun-ties and cities, creates compact districts,and maximizes the number of politicallybalanced districts. “Balance” means politi-cians have to compete for your vote.

The nonpartisan independent commis-sion mandated in Issue 2 will achieve theleague’s longstanding recommendations.

Politicians have had many chances toget it right; it’s high time to give the powerback to voters. Vote “yes” on Issue 2.

Carol GibsonCleveland Heights

No fan of Obama■ The election for president in Novemberwill be a very important one. Our presi-dent’s 2008 campaign championed his

ability to bring our country together,unify us, and reach across the aisle tocreate a better, stronger country.

Just the contrary. Think about it — the Affordable Care

Act (Obamacare, which will be his land-mark legislation) did not reach across theaisle; not one Republican (in the House orSenate) voted for it. How can one whowas so dedicated to bringing everyonetogether not garner one Republican vote?

Let us also consider what is being pro-moted to unify us currently: “Wealthynot paying their fair share.” Based on2009 data, only 1% of our taxpayers paid38% of all taxes, and 0.1% of all taxpayerspaid 18% of all taxes. These data tell methey are paying their fair share. This doesnot mean they cannot pay a little more,or that we should not revise our tax laws

PUBLISHER/EDITORIAL DIRECTOR:Brian D.Tucker ([email protected])

EDITOR:Mark Dodosh ([email protected])

MANAGING EDITOR:Scott Suttell ([email protected])

OPINION

See LETTERS Page 9


to deal with other inequalities, butit does tell me they are paying theirfair share.

All the campaign rhetoric is creating a very dangerous situationof class warfare and divisiveness,not togetherness. In the end, thiswill lead to social unrest (thinkabout Greece), which would erodeour country’s fabric and weaken ourability to lead the world.

A president who was so determinedto unify us is now determined to divide us. This is not healthy.

Cast your November vote carefully.Giving someone another four yearscan change our entire country, andnot necessarily for the better.

President Obama is a nice guy,very personable, but hollow on intent. It is more than just words —it is truly all about actions.

Michael PappasKirtland

Don’t sell ourselves short■ I appreciated Brian Tucker’s Oct.8 commentary, “On our list of detractors, we’re No. 1.”

The only people that don’t appre-ciate Cleveland are the people whohave never lived here and the peoplewho have always lived here.

We have many treasures in thistown beyond what is commonlyknown, but that is not our greatestattraction.

Economically, Northeast Ohiomay become the natural gas capitalof the world, while our abundantwater, cheap energy and strategiclocation can make us a real boomtown. And here’s some otherpromising information — a Chicagoreal estate expert familiar withCleveland said that we are unique,maybe in the world, with so muchvacant, developable land so close tothe lake and business center.

I got to thinking. We once had 1 million people living here, mostlyin homes. Many of those homes are now vacant lots, and many have abandoned houses. I imaginethat much of this property can be gobbled up just by paying the back taxes or promising to teardown the houses and keep the grassmowed.

The only people thatdon’t appreciate Cleve-land are the people whohave never lived hereand the people who havealways lived here.


CHRIS DEVITORocky RiverHe has many things to do,so there’s no one thing. …As long as he has a good,comprehensive plan andhe’s starting from the topall the way down to thebottom, it will work.

➤➤➤➤ Watch more of these responses by visiting the Multimedia section at www.CrainsCleveland.com.

THE BIG ISSUEWhat’s the first thing new Cleveland Browns owner Jimmy Haslam, whose purchase of the team became official last week, should do to improve the team?

BOB LINTONWestlakeI think the first thing heshould do is send MikeHolmgren back to Seattle.… Bringing Joe Banner inwas the absolute bestthing he could do.

SEAN ALLENBay VillageI think he should restorecredibility by taking a personal interest in theteam, as he seems to bedoing, and build this teamslowly with good-quality,ethical players.

RALPH TYLERCleveland Restore faith. This town hasput a lot of commitmentand shown an unusualamount of tolerance forwhat has resulted in amediocre product.

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LETTERScontinued from PAGE 8

WRITE TO USSend your letters to: Mark Dodosh, editor, Crain’s Cleveland Business,700 W. St. Clair Ave., Suite 310,Cleveland, OH 44113-1230e-mail: [email protected]



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Turnpike: Kasich deals with backlog done unless you go along with leasingout the turnpike or using its bondingcapacity,’” Mr. FitzGerald told Crain’sOct. 9, expanding on comments he’dmade a few minutes earlier to CountyCouncil.

Steve Faulkner, press secretary forthe Ohio Department of Transporta-tion, discounted any link betweenthe second Inner Belt bridge andother stalled highway projects andthe future of the turnpike.

“We’re talking about two com-pletely different issues,” Mr. Faulknersaid in an Oct. 11 telephone inter-view. “Ed FitzGerald is making it apolitical football, and at ODOT wedon’t have time for that.”

However, Mr. Faulkner did acknowl-edge that the state has a $1.6 billionbacklog of highway and bridge pro-jects stuck in limbo as federal andstate gasoline tax revenues — the keysources of money for road projects— have declined, and because taxincreases are not in the cards.

Study timeAlmost from the day he was inau-

gurated in January 2011, Gov. Kasichhas talked about using the turnpike— a largely paid-for toll road operatedby an independent commission —

continued from PAGE 1 as collateral to raise as much as $1billion in order to pay for other badly needed infrastructure needs.The governor saw how Indiana cameinto $3.8 billion in 2006 when itleased the Indiana Toll Road to aprivate operator for 75 years.

Mr. Kasich’s $1 billion figure isbased on a 30-year lease or bond sale.

After some early pushback fromcritics, especially from public offi-cials in northern Ohio, the governorin January hired KPMG CorporateFinance to evaluate options for theturnpike. Those options include doing nothing; using excess turnpikerevenue to sell bonds that would beinvested in roads and bridges; orsigning a long-term lease with a private firm that would pay the stateto operate the toll road for as long as30 years.

Initially, the consultant’s studywas to be finished by July 1. Thecompletion date then was pushedback until the end of the year.

But when Gov. Kasich was inCleveland Oct. 4 for a ribbon cuttingof a $34 million link under the WestShoreway between the Detroit-Shoreway neighborhood and thelakefront, he told a Columbus Dis-patch reporter that the study wasdone and would be released withinthe next month.

He also discussed the potentialhe saw in unlocking the money inthe turnpike. Those comments ledThe Dispatch to headline its story,“Kasich closer to turnpike lease.”

Knowing release of the turnpikestudy is imminent has raised Mr.FitzGerald’s concerns.

Breaking into the bank?ODOT’s Mr. Faulkner said the

department is working on severalfronts to find money for highwaysand already has found $400 million

it will use to put projects into thepipeline over the next several years.He said the money is coming from avariety of sources, including $40million in the savings from the mild2011-12 winter and another from$65 million in federal money thatwasn’t spent on projects elsewhere.

Mr. Faulkner said another $35million will go into the pot from costsavings on existing road projects.

That money only makes a dent inthe $1.6 billion construction back-log, however, and keeps alive theidea that Gov. Kasich will break intothe piggy bank that is the turnpike.

To start work on the second Inner Belt bridge in 2014 and giveODOT time to gather more reserves,Gov. Kasich has talked about usinga form of alternative financing calleddesign-build finance, or DBF.

This process asks a contractor todesign and build a road or bridge,and to finance it as well. The statewould pledge to pay off the bridgecontractor’s financing two to fouryears after the project’s completion.

But Mr. FitzGerald and others aresuspicious that the only way the statewill be able to make good on thepledge to repay the contractor is toextract the money from the turnpike.

“It’s almost like it’s a done deal”when it comes to using the turnpikeas financial leverage, said LorainCounty commissioner Ted Kalo. “Idon’t think the process has been asforthright and as fair as it shouldhave been.”

Public officials in 13 northernOhio counties along the turnpikehave banded together to opposeany plan to privatize the road. Mr.Kalo said about 75 people came to atown hall meeting in Elyria on thesubject in July and the attendeeswere almost unanimously againstselling or leasing the turnpike. ■

Nature Stone’s name getsboost from dealer programBy GINGER [email protected]

Bedford-based Nature Stone isusing a dealer network to enhanceits position in the market.

The stone and epoxy flooringcompany about 18 months agolaunched an authorized dealer program, allowing approved dealersnationwide to sell the Nature Stoneproduct. Nature Stone now hasmore than 80 dealers in the UnitedStates, Canada and Barbados, andit’s on pace to add 50 to 80 more eachyear, said Russ Masetta, owner ofNature Stone.

Mr. Masetta, who founded thecompany in 1989, said he sees thedealership program as a cost-effec-tive way to grow Nature Stone’sbrand and business.

Already, the dealership programhas boosted Nature Stone’s sales,which typically are $10 million annually, by $1 million to $2 million,Mr. Masetta said. He expects another10% in sales growth this year.

“The name Nature Stone is becoming very prominent,” Mr.Masetta said. “The name is synony-

mous with the product.”Mr. Masetta turned to the dealer-

ship concept after testing franchising,a program that proved expensive tomaintain.

“What I saw was the franchises,while they were able to sell theproduct and make a living, I noticedthe growth was not happening likewe grew in Cleveland,” he said.

With the dealership program, approved contractors participate ina $500 training course and then areable to offer the Nature Stone line intheir stores without any contractualobligations or costs. In return, NatureStone provides marketing materialsto the dealerships and pays for national marketing campaigns.

In addition to its dealership program,Nature Stone in April launched a do-it-yourself online store fromwhich it sells maintenance and service products to consumers.

Mr. Masetta said he would like todevelop a larger network of dealersacross the country before he decidesto sell the online Nature Stone prod-ucts via retail channels.

“It’s something we will certainlyconsider,” he said. ■


In response to its call for interestingNortheast Ohio family businesses toprofile, Crain’s Cleveland Businessreceived nearly 100 suggestions.Coming from a variety of sectors,each had its own compelling history.On the following pages are just a fewof those stories, each offering a different look at the dynamics of mix-ing family and business.

Allstate Hairstyling & Barber Collegecleveland

By KATHY AMES [email protected]

Barbering has roots in theD’Amico family tree. Thevocation stems back gener-ations, with Mike D’Amico’s

great-grandfather and grandfatherrunning their own Cleveland barbershops.

Mr. D’Amico’s father also settledinto that line of business beforebranching out in 1974 to buy theAllstate Hairstyling & Barber College, which Mr. D’Amico tookover in 2008 when his father died.

The operation that educates andtrains future barbers and providesa variety of discounted serviceslikely will change hands again onceMr. D’Amico, 67, relinquishesownership to his son, Michael, anddaughter, Lisa, both of whom are

involved in the business along withdaughter-in-law, Jennifer.

“That’s a long way off, longer thanI want to think,” said Mr. D’Amico,who graduated in 1967 from the college, which was founded in 1961.

The 10-employee operation —one of 12 barber schools in the state— each year graduates 15 to 20students, with the 1,800-hour pro-gram taking about a year to complete.

“Some students think they’rejust here to learn how to cut hair,”Mr. D’Amico said. “But there’s awhole classroom component to it.”

The curriculum consists of customer service training, businessmanagement skills and even learningabout the body’s nervous system.

“You’re learning about the bodybecause you’re working around facial features while doing certainprocedures,” Mr. D’Amico said.

“You need to know if you’re doinga facial for someone who has highblood pressure because there canbe a reaction.”

Eric Wobser, executive directorof Ohio City Inc., said Allstate Bar-ber College is a neighborhood iconthat enhances the community’s

character.“Allstate is a celebration of the

neighborhood’s diversity, withlawyers sitting next to brewers andbartenders getting quality servicefrom the next-generation Clevelandbarber,” he said.

The college touts a 100% jobplacement rate for its 2011 class.

Some of the college’s graduatesleave for larger markets, includingChicago, Puerto Rico or California,where one former student operatessalons in Torrance and Hollywood.

And many stylists remain inNortheast Ohio and start their ownventures. Quintana’s Barber &Dream Spa in Cleveland Heightsand Dante Lucci in Rocky River andAvon represent upscale salonsfounded by Allstate graduates.

“A lot of graduates go on to opentheir own shops,” Mr. D’Amico said.“We get a lot of people who’ve beenmisplaced in their jobs or come offthe street or have no (career) direc-tion. We get them in the school, andthey find a lot of opportunities.”

JANET CENTURY

Mike D’Amico (center) of Allstate Barbers is flanked by his son, Michael, anddaughter, Lisa as longtime customer Michael Gordon of Parma gets a shave.

American CommodoreTuxedo

By KIMBERLY [email protected]

In 1918, Nick Simoni, an Italianimmigrant, came to Clevelandand used his master tailor skillsto create wedding tuxedos.

Word of his talents spread, and in1928, he ventured into the tuxedorental business.

Three generations later, Mr. Simoni’s family still is in the business,running American CommodoreTuxedo out of its South Euclidheadquarters.

Frank Simoni, Nick’s grandson,and Ray Caporale, Frank’s cousin,bought the business from Frank’sfather, also named Frank, in 1999.

Mr. Simoni, president of thecompany, and Mr. Caporale, vicepresident, grew up in the businessalong with Frank’s sister, ToniWick, treasurer/secretary.

Mr. Simoni said he and his sisterspent most days after school workingat the store, which started out asAmerican Dress Suit Rental. Thename changed to American Com-modore Tuxedo in the late 1960swhen the elder Frank Simonibought out another Cleveland-basedtuxedo business. Today the companyemploys about 150, increasing to185 during peak prom season.

The company’s headquarters andwarehouse are in South Euclid, withadditional locations throughoutOhio and Pennsylvania. Mr. Simonisaid what makes American Com-modore unique is that it has a local40,000-square-foot warehouse that

houses 28,000 tuxedos on site.Dave Morton, general manager/

director of store operations, saidthe company tries to raise its profileby locating stores in prime regionalmalls.

“We have an obligation to ... thereputation of (the Simoni) grand-parent and children and grandchil-dren who have been serving thou-sands of weddings for years,” hesaid, adding that he started out 26years ago as a part-time sales asso-ciate at the Summit Mall locationwhen he was a University of Akronstudent.

The economic downturn of thelast few years did lead to the closingof a handful of stores over the pastseven years, but the family says theclosures actually improved thehealth of the company. Mr. Capo-rale added that the business stillservices roughly the same numberof weddings annually, but the sizeof the wedding party is smaller.

Mr. Caporale said trends went ca-sual for a period, and it wasn’t un-common for a groom to don a regu-lar suit. But, he sees that changing assmaller weddings can turn into

more meaningful celebrations.“My father always said, ‘Did you

ever see anyone that didn’t lookgreat in a tuxedo?’” rememberedMr. Simoni, adding that AmericanCommodore offers a color-matchingservice to coordinate vests and tieswith bridesmaids’ dress colors.

Last year, the business invested$300,000 into the South Euclid location to increase its inventoryand add a prom and special occa-sion dress section.

The boutique shop carries high-end dresses that range in pricefrom $200 to $800. Mr. Caporalesaid the boutique is a prototype fora combination tuxedo-formalwearconcept the company plans tolaunch in each of its major markets.

South Euclid economic develop-ment director Michael Love saidAmerican Commodore has been ananchor business on the MayfieldRoad corridor for decades.

“They’ve been a great communi-ty partner, a great anchor institu-tion for South Euclid, and theymade a decision to make a long-term commitment to this city,” hesaid.

south euclid

MCKINLEY WILEY

Toni Wick and Frank Simoni, the sibling tandem behind American Commodore

MARC GOLUB

The family that makes Americon go, from left: architect Maria Coutris, CEO andpresident Angelo Coutris; environmental manager Alexis Trakas; vice presidentof sales and marketing John Coutris; and vice president of operations AnthonyTrakas.

Americon Inc.lakewoodBy CHRISSY [email protected]

When disaster recoveryspecialists from Americon Inc. were dispatched to the flooded

offices of the Cuyahoga Land Bankthis summer, they descended onthe water-logged workplace like“Navy SEALs of casualty loss,” saidGus Frangos, president and generalcounsel of the Cuyahoga CountyLand Reutilization Corp.

“An army of people came downhere with enormous pieces ofequipment — pumps, vacuums,fans — and they started removing water, moving furniture and evalu-ating computers. We didn’t have to shut down for even an hour,”said Mr. Frangos, noting that his See AMERICON Page 12

Lakeside Avenue office handleshundreds of time-sensitive transac-tions a month.

“It’s a story untold,” he said. “Ican’t tell you how profound it wasthat we were able to continue operating because any downtimewould have spilled over to createbottlenecks not only here but withother county agencies.”

With references like that it’s nowonder the 100-year-old businessis thriving in its fourth generationof leadership. Headquartered inLakewood, Americon provides disaster restoration services to resi-dential, commercial and institutionalcustomers across Northeast Ohio.

Family-owned and operated,Americon has grown into a multi-million-dollar corporation duringthe last four decades with AngeloCoutris at the helm.

“We are very unique. If you havea problem, a major, major problem


“It’s really a family business. We believe innepotism here.” – Angelo Coutris, CEO andpresident, Americon Inc.

and you want to think out of thebox, you want to call Americon,”Mr. Coutris said. The company specializes in both minor and catastrophic losses associated withfires, floods, severe weather andvandalism, as well as constructionand remodeling services.

“It’s very important for people toget back in their homes and back tobusiness right away after there is aninsurance claim on a structure,” hesaid. “We always answer ourphones, 24 hours a day, and we areready to respond within minutes ofgetting a call.”

The company remains rootedwith the same fearless work ethic ofits founder, Angelo Kiminas, Mr.Coutris’ grandfather and namesake,an immigrant from Greece whostarted a small painting company in1912 to serve Cleveland’s growingcommercial and industrial base.

Mr. Kiminas’ son-in-law, JohnCoutris, joined in the business inthe 1940s when the company expanded into residential painting.

“I used to go to work with my dadwhen I was a little kid and I lovedthe business,” said the 63-year-oldCEO and president. By the time hegraduated high school in 1968, theyounger Mr. Coutris was runningcrews and helping with estimates.His father, who battled cancer, died in 1973. “My father was firstgeneration from Greece, and hehad a thick accent but even so hecommunicated well. Our customersloved my father. He was a greatman with a great heart.”

By 1980, Mr. Coutris had renamedthe company Americon Inc., earnedtwo degrees, including one in lawfrom Ohio Northern University,and branched into a new field of assisting those who suffered struc-tural losses to their home or business.

“I started seeing a lot of my

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Leopold’s Furniturebrecksville

remaining in Cleveland, Mr. Lewissaid, in an industry hit hard by therise of national chains and onlinefurniture retailers.

“It’s the type of business like afamily restaurant,” said Mr. Lewis,who sold furniture to Leopold’s formore than 30 years. “It’s tough togo against someone like Applebee’s.It’s long hours and hard work, butpeople say it gets in your blood.”

Raised with fathers and grandfa-thers in the business, that’s thekind of connection Mr. Lutz andMr. Leopold have had with furni-ture from childhood.

“I was in kindergarten or firstgrade, my dad would sit me downin the back of the store with a handsaw and a box of nails,” said Mr.Leopold, 32, who recalled buildinga step stool that his own kids nowuse.

To succeed, Mr. Lutz and Mr.Leopold have stayed true to thestore’s high quality standards andmarket position while adapting tochanging home decor tastes. Theyplace high value on buying fromfamily-owned vendors, and seemany customers coming throughtheir doors because of the Leopoldfamily legacy.

“They are impressed when theysee that my last name is Leopold,”said Mr. Leopold, adding with alaugh: “Then some ask, ‘Hey, can Iget a discount?’”

Both men are committed toLeopold’s future as a family-ownedcompany. They’re making strategicplans now for long-term succession.

“We have a lot of respect for theage of this business,” Mr. Lutz said.“We’re still committed to keepingit in the family.”

OCSTechnologies Inc.brooklyn heights

management over the next 70 years.Mr. Gunn assumed leadership

from his father in 1989 and 10 yearslater, recognizing the burgeoningdemand for product quality, espe-cially among American car makers,he shifted the company’s focus fromdistributing scales to providing testing and calibrating services.

“Over the last 20 years qualityhas become a much bigger issuefor manufacturing companies,” hesaid. “Companies were saying forthe first time, ‘We need to make carparts,’ for example, ‘with no morethan one bad part in 1 million.’

In 2000, OCS Technologies became one of the first calibrationlabs to achieve ISO 17025 certifica-tion, an accreditation standard forcalibration and testing providers.Soon, customers were asking forthe company to expand its calibra-tion services beyond scales to devices that measure pressure, tem-perature and force, among others.

John King, CEO of J.A. King, aNorth Carolina-based company

that also distributes and servicesindustrial measuring equipment,said OCS Technologies’ diversifica-tion was a key to its growth.

Once a company can calibrate a wider range of measurement prod-ucts for existing customers, it offers“a real value to customers,” he said,and could grow the bottom line by60% to 70% without adding a signifi-cant amount of new customers.

Family is still an important partof the mix for OCS Technologies.Mr. Gunn’s two sons, Tim and JoeGunn, head up the new productsales and calibration services departments, respectively. Mr.Gunn’s first cousin, John Corrigan,heads up the OCS weighing tech-nical services department.

Mr. Gunn said that being a family business has its advantages.One perk is trust. There is no timeclock; employees report their hours.Solidarity is another big bonus.

“Everybody wants this to work,”he said. “Everybody wants thecompany to be successful.”

MARC GOLUB

Leopold’s Furniture president Mark Lutz (left) and vice president Chad Leopold

JANET CENTURY

OCS president John Gunn (center) with sons, Joe (left) and Tim

Americoncontinued from PAGE 11

customers were struggling with insurance claims,” he said. “They didn’t know how to handle them,and I started learning the businessmyself and I started doing it for myrelatives, customers and friends.”

Now, about 85% of the businessis devoted to disaster recovery services and it is 99% referral based.The company has 13 employees, butin his early days of running the com-pany, Mr. Coutris wore all the hats.

“I always tried to spend a lot oftime with my family,” he said. “Iwould pile the kids in the car becauseI wanted to be a good father. I have abeautiful wife, Christine, who I amstill married to, 41 years. We wouldtake the kids for rides on estimates. Iused to drop them off at a mall anddo estimates around the mall andthen pick them up and go to dinner.”

Now his two oldest children,Alexis Trakas and John Coutris, andtheir respective spouses, AnthonyTrakas and Maria Coutris, all haveassumed significant roles at thecompany. His youngest daughter,Nicole, lives in Minnesota and isnot involved with the business.

As for succession planning, Mr.Coutris expects his children (andtheir spouses, who he considers hischildren, too) to take over the busi-ness. And who knows beyond that,but there are four grandchildren, in-cluding another Angelo, that couldmake it a fifth-generation business.

“We have great people workingfor us and we have a lot of familieseating out of this business,” he said,adding that other than his immediatefamily members Americon employstwo brothers, cousins and two sis-ters. “It’s really a family business.We believe in nepotism here.”

SMALL BUSINESSHave you started a new venture recently?

Crain’s, in its monthly Small Busi-ness section, highlights new businessesin a feature called Grand Openings.

To submit a new business, sendthe following by email to Amy AnnStoessel at [email protected]:

business name; address; city andZIP; website; brief description ofbusiness; business phone number;business fax number; business emailaddress; and date that businessopened.

By JENNIFER [email protected]

The yellowed receipt lists a6-foot dining table sold for$5, four chairs for $1.68and a rocking chair for $4.

It’s dated Sept. 29, 1894, signed personally by Henry Leopold, aGerman immigrant and cabinet-maker who founded Leopold’s Furniture in Cleveland in 1859.

“People bring these kinds of treasures in to us all the time, likeold invoices they found in their parents’ attics,” said Mark Lutz, 60,current president of Leopold’s Furniture.

He’s the family’s fifth generationto manage the business, alongsidevice president and co-owner ChadLeopold, Mr. Lutz’s second cousinand the company’s sixth generation.

Such historic documents, pho-tographs and other relics line thewalls of Leopold’s 16,000-square-foot Brecksville-based showroom,contrasted by contemporary furni-ture and fabrics from such middle-to high-end brands as Drexel Heritage, Bernhardt and Lexington.

This store is the fifth the companyhas owned in its 153-year history.

Historically, the furniture businesshas been one dominated by family-run companies like Leopold’s, according to Ron Lewis, a retiredindependent furniture sales rep.But Leopold’s is one of the last

By JUDY [email protected]

The pursuit of quality on thepart of manufacturers, evenin the face of a global reces-sion, has been the driving

force behind OCS Technologies Inc.The third-generation business,

based in Brooklyn Heights, hasgrown from 17 employees in 2002to 27 today. It has been buoyed inlarge part by long-term service relationships to test and calibrateindustrial equipment and help ensure manufacturers of everythingfrom automobiles to sophisticatedbiotechnology instruments thattheir products are up to par.

“It is a niche industry, but it is onethat is very important to manufac-turers,” said OSC Technologiespresident John Gunn.

The firm was founded in 1930 asOhio Counting Scale by Mr. Gunn’sgrandfather, Napoleon Cousineau.

At the time, Mr. Cousineau was atechnician for a scale company, buthe soon stepped up to fill a voidwhen his company manager com-mitted suicide in the wake of thestock market crash.

“He lived in Cleveland with fourkids and had to feed them. He justkept doing what he was doing, andeventually started his own companyto do that,” Mr. Gunn said.

Born out of Mr. Cousineau’s perseverance, Ohio Counting Scalefilled the need for industrial scalesand scale service among Cleveland’sbustling manufacturing base andgrew steadily under the family’s

20121022-NEWS--12-NAT-CCI-CL_-- 10/18/2012 11:11 AM Page 1

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Ozanne Construction Co.cleveland

JASON MILLER

Dominic Ozanne, the son of Ozanne Construction Co. founder Leroy Ozanne, ispresident and CEO. He is in front of Ozanne’s recent project, the Cuyahoga Met-ropolitan Housing Authority’s headquarters building.

Rose Iron WorksclevelandBy JENNIFER [email protected]

In 1903, Martin Rose arrived inthe United States with his wife,son, $200 and two chests ofblacksmithing tools. He’d left

behind a successful metalworkshop in Hungary for the promise ofnew opportunity in Cleveland,renowned then for steelmaking andmetalworking.

Martin Rose rebuilt his businessby cold-calling Cleveland’s elite,bearing a spray of iron-forged rosesthat became his calling card.

That piece introduced his dis-tinctive European style of metal-working to the region and turned See ROSE Page 14

names like Halle, Sherwin and Sev-erance into devoted patrons.

Three generations later, BobRose, Martin Rose’s grandson andnow president of Rose Iron Works,still has a photograph of that sprayon his business card and displaysthe original at the company’sCleveland headquarters.

“When my grandfather came,blacksmiths didn’t have the skillshe brought from Europe,” said Mr.Rose, who joined his father, Melvin,at the company in 1971. “He had tochange that culture.”

For 108 years, Mr. Rose and hisforebears have navigated the chal-lenges of growing the family’s busi-ness while also preserving a collec-tion of artwork created by Martinand Melvin Rose in collaborationwith masters like Paul Fehér — who

By KATHY AMES [email protected]

The environment, economyand sustainability are conductors of the cultureat Ozanne Construction

Co., a multidisciplinary concernthat has managed the developmentof prominent structures throughoutOhio and beyond.

The company, under LeroyOzanne, began reshaping Cleve-land’s landscape by constructingcommercial and industrial buildingsin the early 1950s. It subsequently ex-panded its geographical footprint toinclude the Midwest and South, andit now has a bevy of heavyweightclients in the aviation, health care,government, education, commercialand residential sectors.

Leroy’s son, Dominic Ozanne,joined the firm in 1980 and now, aspresident and CEO, oversees the 60-employee operation that is responsi-ble for $250 million in work under itsproject management program.

His cousin, Ken Auzenne, is the

firm’s project executive in the GulfCoast region. Dominic’s son, Dominic II, is a project engineer atthe firm’s New Orleans office and is astudent in Tulane University’s sus-tainable real estate developmentmaster’s program.

Ozanne Construction, a memberof the U.S. Green Building Council,has more than 20 employees certi-fied in Leadership in Energy andEnvironmental Design. It also focuses on inclusion policies byrecording minority, female and local resident participation in theon-site work force, and by activelysoliciting those demographics withother project stakeholders.

“I admire my dad. From the beginning, he was incorporating diversity and inclusion before theywere even mentioned in the indus-try,” Dominic Ozanne said.

Notable projects locally includethe construction of both the Nord-son Corp. and the Cuyahoga Metro-politan Housing Authority’s head-quarters buildings, both of whichwere completed in 2011.

“We are pleased Ozanne Con-struction was able to align its eco-nomic development and innovativegreen efforts with CMHA’s strategicgoals and sustainability practices,”said Jeffrey Patterson, the housingagency’s CEO. “The company trulyplays a vital role in augmenting theoverall vibrancy of the community.”

Projects within both the Cleve-land Metropolitan School Districtand University Hospitals HealthSystem represent some of the sig-nificant investments with whichOzanne is involved.

As for what’s next, Mr. Ozannesaid the operation is looking fornew project opportunities and theability to apply emerging construc-tion technologies such as 3-Dbuilding modeling in the NortheastOhio market and beyond.

Dominic IIAuzenneL. Ozanne


was staff artist in the 1920s and1930s — Viktor Schreckengost andElsa Vick Shaw. Rose Iron Workscontinues collaborations with contemporary artists, architectsand sculptors, such as currentartist-in-residence Stephen Yusko.

More than 2,000 original piecesare on display in the Rose office,while others now are part of perma-nent collections at the ClevelandMuseum of Art and elsewhere.

“We’ve had to re-imagine what wedo many times in the 100-plus yearswe’ve been around,” Mr. Rose said.

1144 CRAIN’S CLEVELAND BUSINESS OCTOBER 22 - 28, 2012

Bob Rose at Rose

Iron Works’Cleveland

headquartersRUGGERO FATICA

RUGGERO FATICA

Jon Cromling (from left), Maureen Cromling, Bill Cromling II and Bill Cromling III

Ross EnvironmentalServices Inc.elyria

Rose Iron Works survived the eco-nomic blow of the Great Depression,two world wars — during whichmetal could only be fabricated forthe war effort — and a proliferationof overseas metalwork that nowdominates mainstream retail.

Their success through toughtimes can be attributed in part tothe creation of Rose Metal Indus-tries in the 1970s, which diversifiedthe company’s business modelinto industrial metal fabrication.

“What distinguishes (the com-pany) is that … they preserve boththe artistic side and the businessmanufacturing side,” said MikeBenz, retired United Way president

and CEO, and the first executivedirector of COSE, where Melvin andBob Rose were on the founding boardin 1973. “That’s what makes itunique and why it has lasted so long.”

After the death of his father earlier this year, Mr. Rose, 66, is theonly full-time family member in-volved in this 40-employee business,and he is focused now on creating asuccession plan that will sustain thebusiness and artistic legacy.

“There’s satisfaction in weatheringstorms and building staff, who arejust amazing people,” Mr. Rosesaid. “I want to see it continue, butit has to continue as a business.My goal is to find sustainability forthe work and the team.”

Rosecontinued from PAGE 13

By DAVID [email protected]

Ross Environmental ServicesInc. in Elyria is considered byits owners to be a “familyheirloom.”

But, the Cromling family ownerstake nothing for granted in pursuinga strategy that includes growing thecompany, keeping it in the familyand preparing the fourth generationto take over as owners and managers.

For example, chairman MaureenCromling, whose parents started thefirm in 1949, said a tour of the firm’sfacilities — which will include her sixgrandchildren — is being planned.

“We want them to understand thecompany and to give them a chanceto be involved,” she said. “We wantthem to know that owning and (thedemands of) managing are different.”

“We plan as a family, and we keepthe next generation in mind,” shesaid. Maureen (Ross) Cromling andher husband, William E. Cromling II,have two sons, William E. CromlingIII and Jon Cromling, who are offi-cials in the firm’s two business units.

Bill is the president of RossTransportation Services, and Jon isvice president of strategic businessand land development for Ross Incineration Services. Mr. CromlingII is retired and sits on the board’s

executive committee. For Mrs. Cromling, it is important

that family members avoid a senseof entitlement and instead concen-trate on effective management.“They have to earn their way.”

Mr. Cromling III put it this way:“You have to demonstrate that youare here to work and accomplishthe company’s goals. You don’twant anyone to think you are herejust because you are a member ofthe family.”

Mrs. Cromling said the emphasisalso is on building an effective workforce when it comes to those outsidethe family. Ross has 220 employees.

“We have always been impressedby the effort Ross puts into showingthey care for their employees andthey try to maintain a culture thatcelebrates and rewards performance,”said Marty Mordarski, director ofmember services for the EmployersResource Council.

Mrs. Cromling said her father,Robert C. Ross, was a farmer andtruck driver who started a businesshauling industrial waste shortly after World War II.

A man with no formal education,but with a knack for engineering,Mr. Ross designed a controlledcombustion unit to burn liquidwaste. The first unit was installedby the company in 1958 in EatonTownship in Lorain County.

The company’s waste disposal andtransportation businesses serve cus-tomers across the country, althoughcustomers in the Northeast and GulfCoast provide much of the business.Sales are an estimated $45 millionannually and are projected to increase 25% in the next five years.

Phil Vedda and Sons Printinglakewood

By KIMBERLY [email protected]

Aprint shop course at Lake-wood High School in the1950s planted the seed fora family business that now

boasts three generations.Phil Vedda and Sons Printing

has been family-owned since 1956.The company’s namesake took toheart a high school assignment toprint a business card for his grand-father, who owned a stand at theEast Side Market. After graduation,Mr. Vedda bought a $4,000 piece ofequipment to start his print shopbusiness on Detroit Avenue.

While Mr. Vedda is semi-retired,he still brings lunch for everyoneevery day — Mondays and Fridaysare spaghetti and meatballs — andhis wife, Grace, still takes care of thebooks.

In 2007, the business moved toBerea Road in Lakewood to expand

its commercial printing and mailingservice business. Services includegreen printing, pre- and post-press,digital printing, offset printing andbindery, along with mailing services.

Today, brothers Joe and Jim Vedda — both vice presidents —have picked up where their parentsleft off. Joe Vedda said his parentsweren’t the vacationing type, so theVedda clan spent summers at theprint shop. After school, they walkeddown the street and around the corner from St. Edward High Schoolto help out around the business.

While Jim Vedda dove into theproduction end of the business,Joe Vedda went to Cleveland StateUniversity to earn an associate’sdegree in business.

“I was never the type to get myhands dirty and run the equipment.I was going to be an accountant torun the business side of things,”said Joe Vedda, adding that it wasnever really a question what they


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RUGGERO FATICA

White Dove Mattress’ Henry and Bruce Goodman

White Dove Mattress Ltd.newburgh heights

“Transitions don’t work if theolder generation doesn’t let theyounger generation take over. Isaid to Bruce, ‘Tomorrow, you’rethe driver and I’m the passenger.’”

Company net sales have increasedeight-fold since 1996, Bruce said.Several factors contributed to the100-employee company’s growthincluding: becoming a nationalplayer through their own Sleep-Logic brand; securing licensingagreements with other vendorssuch as Comfort Solutions; andserving larger regional and nationalaccounts.

This year’s sales are expected toexceed $20 million; year-to-date netsales reflect a 30% increase fromlast year, he said.

The company’s longevity “is anaccomplishment to be applauded,”said Karin Mahoney, director ofcommunications for the Interna-tional Sleep Products Association ofAlexandria, Va. Mattress purchasesare deferrable, she added.

“It’s a competitive market,” shesaid. “Everybody tries to come outwith the latest and greatest to try toplease people; to stay afloat takes alot of work.”

“The world has changed,” Mr.Goodman said, from when his father conducted 80% of sales volume within a 40-mile radiusfrom the company’s factory head-quarters. By comparison, currentsales are generated primarily withina 300-mile radius from headquarters;

additionally all 48 mainland statesare served.

Someday, Bruce will address succession. Whether his childrenenter the business remains an unknown; he prefers they exploretheir own career paths.

“The most important startingpoint is that individuals wanting tocome into the business have to becommitted,” he said. “It can’t bebecause they think they should orothers want them to. They shouldbe comfortable in that decision.”

By SHARON [email protected]

Acollege project guidedBruce Goodman’s return tohis family’s business.

From 1983 to 1993, Mr.Goodman, now 52 and president of White Dove Mattress Ltd., afourth-generation operation,worked for the family business.

Back then, however, Mr. Goodmanwas managing another of the family’senterprises — five J.L. Goodman Furniture Co. stores and three EthanAllen furniture stores — not the New-burgh Heights bedding productscompany that he now leads.

“I made a decision, after 10 yearsin the business, that furniture retailing was not for me; I didn’t enjoy this to do this the rest of myworking life,” Mr. Goodman said.

Due to that decision, he said, in1993 the J.L. Goodman furniturestores were closed; the Ethan Allenstores were sold. Mr. Goodmansubsequently attended school,starting in 1994, and earned an executive MBA from Case WesternReserve University in 1996. Thattime, he said, energized him.

Returning to the family businesshappened as Mr. Goodman re-searched the family’s bedding prod-ucts company for a school project.Founded in 1922, H. Goodman Inc.was a business that included mat-tress and box spring manufacturing.

Meanwhile, Mr. Goodman alsowas pursuing company ownershipelsewhere through networkingchannels. Ultimately that college-driven analysis of H. Goodman Inc.,now known as White Dove Mattress,helped him identify the “perfect opportunity.”

He approached his father. “I toldhim I only had two preconditions:One is I make all the decisions; and two, I own the majority of thecompany. He ended up saying,‘Yes.’ The time was right for him;the time was right for me.”

Henry Goodman, 80, said he supported both his son’s 1993 departure and 1996 return.

would do when they grew up. “Wewere doomed from birth.”

That family tradition is carryingon with Joe and Jim Vedda’s sons,both named Phil. Joe Vedda ex-plained it’s an old Sicilian traditionto name the first-born son after thechild’s grandfather. Joe’s son, Phil,is the executive sales manager andinvolved in a variety of networkinggroups to grow the business. Jim’sson, Phil, followed in his father’sfootsteps and runs the bindery andmailing department. Each son isbeing groomed to take over his father’s role in the company.

“I see the two Phils taking it astep further than us one day,” saidJoe Vedda, adding that they agreedto limit family involvement in thebusiness to the two sons. “Wethought we’d cut it off there. Itseemed like an even thing to eachhave one son or daughter in thefamily in the business.”

Since that first $4,000 press, theVedda brothers have grown thebusiness into a 20,000-square-footwarehouse with 26 employees.With the opening of the new facilityin 2007, also came the purchase of a

new $2 million press.Less than two years ago, Vedda

and Sons added another press andupgraded its mailing equipment.The new space was projected tocarry the business for 10 to 15years, but there already are plansto expand the building another20,000 square feet within two years.

The Beck Center for the Arts inLakewood has a long-standing relationship with Vedda and SonsPrinting, using the printer for themajority of its printing, includingcatalogs and postcard mailings.

“The quality of their work is out-standing,” said Kathleen Caffrey,director of marketing and externalaffairs. “That’s why we’ve contin-ued the relationship. They are oneof our longest-standing vendors.”

Joe Vedda said running a familybusiness means knowing thateveryone has the same goals.

“We all came from the sameblood. We all think the same,” hesaid. “Our thing is we don’t haveanything else to do except succeed.Our sons are coming up in thecompany, so there is no option tofail.”



YOUR BUSINESS IS OUR BUSINESS

Number of local CPAs Practice personnel engaged in

Rank

NameAddressPhone/Website 8/31/2012 8/31/2011 % change

Number of localdegreed

professionals8/31/2012

Full-timepermanent local

employees8/31/2012

Audit-accounting Tax Consulting Other

Top local executiveTitle

1Ernst & Young LLP925 Euclid Ave., Suite 1300, Cleveland 44115(216) 861-5000/www.ey.com

248 222 11.7% 1,053 1,265 259 172 168 666C. Lee Thomas, managingpartner, Cleveland; EdwardT. Eliopoulos, managingpartner, Akron

2SS&G Inc.32125 Solon Road, Cleveland 44139(440) 248-8787/www.ssandg.com

133 121 9.9% 395 370 114 76 167 81 Gary S. Shamismanaging director

3PwC LLP200 Public Square, 18th floor, Cleveland 44114(216) 875-3000/www.pwc.com

131 127 3.1% NA 303 153 75 45 39Robert (Bob) Saada, LakeErie Market and Clevelandoffice managing partner

4Deloitte127 Public Square, Suite 3300, Cleveland 44114(216) 589-1300/www.deloitte.com

117 115 1.7% 405 433 119 64 186 64Craig Donnanmanaging partner,Deloitte LLP

5Cohen & Co.1350 Euclid Ave., Suite 800, Cleveland 44115(216) 579-1040/www.cohencpa.com

100 100 0.0% 186 210 70 61 44 35 Randall S. Myeroffpresident, CEO

5KPMG LLP1375 E. Ninth St., Suite 2600, Cleveland 44114(216) 696-9100/www.us.kpmg.com

100 100 0.0% 170 185 60 15 95 15 John S. MacIntoshmanaging partner

7Meaden & Moore LLP1100 Superior Ave., Suite 1100, Cleveland 44114(216) 241-3272/www.meadenmoore.com

82 82 0.0% 114 130 56 34 58 28 James P. CarulasCEO

8Skoda Minotti6685 Beta Drive, Mayfield Village 44143(440) 449-6800/www.skodaminotti.com

68 55 23.6% 138 155 58 35 49 13 Gregory J. Skodachairman

9Grant Thornton LLP1228 Euclid Ave., Suite 800, Cleveland 44115(216) 771-1400/www.grantthornton.com

61 59 3.4% 104 110 54 34 11 9 Daniel S. Zittnanmanaging partner

10Maloney + Novotny LLC1111 Superior Ave., seventh floor, Cleveland 44114(216) 363-0100/www.maloneynovotny.com

60 61 -1.6% 90 110 60 25 8 17 Matthew J. Maloneymanaging shareholder

11McGladrey1001 Lakeside Ave., Suite 1400, Cleveland 44114(216) 523-1900/www.mcgladrey.com

56 54 3.7% 73 84 46 20 3 4 Donna Sciarappamanaging director

12Bruner-Cox LLP388 S. Main St., Suite 403, Akron 44311(330) 376-0100/www.brunercox.com

50 50 0.0% 83 102 32 32 19 19 Steven O. Pittmanmanaging partner

13CBiz Inc.6050 Oak Tree Blvd. S., Suite 500, Cleveland 44131(216) 447-9000/www.cbiz.com

49 51 -3.9% 129 178 22 21 53 116 Steven L. Gerardchairman, CEO

14Barnes Wendling CPAs Inc.1350 Euclid Ave., Suite 1400, Cleveland 44115(216) 566-9000/www.barneswendling.com

37 32 15.6% 61 69 33 16 12 8 Jeffrey D. Neumanpresident and director

14Hill Barth & King LLC7680 Market St., Boardman 44512(330) 758-8613/www.hbkcpa.com

37 42 -11.9% 51 79 NA NA NA NA Phillip L. WilsonCOO

16Bober, Markey, Fedorovich & Co.3421 Ridgewood Road, Suite 300, Akron 44333(330) 762-9785/www.bobermarkey.com

36 35 2.9% 68 73 41 21 6 NA Richard C. FedorovichCEO, managing partner

16Howard, Wershbale & Co.23240 Chagrin Blvd., Cleveland 44122(216) 831-1200/www.hwco.com

36 38 -5.3% 72 79 23 14 25 10 Stephen E. Stanisapresident, CEO

18Apple Growth Partners1540 W. Market St., Akron 44313(330) 867-7350/www.applegrowth.com

34 38 -10.5% 62 63 14 32 12 19 David J. Gainochairman

19Ciuni & Panichi Inc.25201 Chagrin Blvd., Suite 200, Cleveland 44122(216) 831-7171/www.cp-advisors.com

33 34 -2.9% 51 56 28 13 8 7 Brian D. Maritamanaging partner

20BCG & Co.1735 Merriman Road, Akron 44313(330) 864-6661/www.bcgcompany.com

32 31 3.2% 58 78 18 29 21 0 David A. Brockmanpresident, managing partner

21Walthall Drake & Wallace LLP6300 Rockside Road, Suite 100, Cleveland 44131(216) 573-2330/www.walthall.com

30 30 0.0% 39 48 30 8 1 NA Richard T. Lashchairman

22Zinner & Co. LLP29125 Chagrin Blvd., Pepper Pike 44122(216) 831-0733/www.zinnerco.com

25 24 4.2% 26 32 15 13 4 1 Robin L. Baummanaging partner

23Pease & Associates Inc.1422 Euclid Ave., Suite 400, Cleveland 44115(216) 348-9600/www.peasecpa.com

24 21 14.3% 41 48 20 19 2 7 Joseph V. Pease Jr.president

24Hobe & Lucas CPAs Inc.4807 Rockside Road, Suite 510, Independence 44131(216) 524-8900/www.hobe.com

22 21 4.8% 29 34 25 3 1 5 Jerome J. Lucaspresident, COO

25Plante Moran PLLC1111 Superior Ave., Suite 1250, Cleveland 44114(216) 523-1010/www.plantemoran.com

21 16 31.3% 42 48 23 8 11 0 Daniel P. Hurshoffice managing partner

26Four-Fifteen Group4100 Holiday St., Canton 44718(330) 492-0094/www.415group.com

20 19 5.3% 40 42 11 20 6 5 Frank J. Monacomanaging partner

27Corrigan Krause2055 Crocker Road, Suite 300, Westlake 44145(440) 471-0800/www.corrigankrause.com

19 21 -9.5% 33 35 NA NA NA NA Thomas L. Harrisonmanaging director

27Rea & Associates Inc.7325 Production Drive, Suite C, Mentor 44060(440) 266-0077/www.reacpa.com

19 21 -9.5% 27 42 20 14 3 0 Ryan DumermuthMentor office manager

Source: Information is supplied by the companies unless footnoted. Crain's Cleveland Business does not independently verify the information and there is no guarantee theselistings are complete or accurate.

RESEARCHED BY Deborah W. Hillyer

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offsetting the skilled worker shortage. “There’s a need to find a way to

increase productivity and overcomethe challenge of not having enoughpeople. Resounding out of manu-facturing right now is the call thatthey don’t have people with the rightcapabilities,” said Deanna Postleth-waite, marketing manager of LincolnElectric Co.’s automation division.

John Stropki, chairman and CEOof Lincoln Electric, said a companycan buy a $100,000 machine that cando the work of two to three people.And that’s why Lincoln Electric,which sells automation in the formof welding equipment, is highly automated itself.

“If you’ve been to Lincoln andyou’ve walked the floor, just thechange of the face of the manufac-turing floor from 10 to 20 years agois amazing,” Ms. Postlethwaite said.

Lincoln Electric views its automa-tion division as one of its major areas of growth moving forward,thanks to the large demand fromcompanies looking for ways to domore with less.

“Automation is a clear opportunitywhen you don’t have enough people,”Ms. Postlethwaite said.

Astro adjustsAstro Manufacturing and Design

is in the process of spending $1.5million on new fabricating machinesfor its fabricating division to reduceits reliance on skilled workers.

“One of the compelling reasonsto buy the new fabricating equip-ment was to be in a position to uselesser skilled fabricators,” said RichPeterson, a community and publicrelations representative and formervice president of business develop-ment for Astro, an Eastlake custommachining and fabricating shop.

The new machines are more automated and will allow Astro toemploy workers with less specializedskill sets, rather than higher-paid

journeymen fabricators, to run each.“We, like everyone else in our

industry, have difficulty in findingskilled workers,” Mr. Peterson said.“Finding skilled manufacturingworkers is a huge challenge and isexpected to get worse ... as the babyboomers leave the work force.”

Astro is looking for a plant man-ager, manufacturing engineers andskilled machinists. Those needs areamong the reasons it participates inthe Alliance for Working Together, aLake County manufacturing coali-tion dedicated to promoting manu-facturing careers.

From bad to worseThe manufacturing sector could

face a severe worker shortage by theend of the decade, according toBoston Consulting Group, a globalmanagement consulting firm.

Boston Consulting estimates theskilled worker shortage currently isin the rangeof 80,000 to 100,000workers, which is less than 1% of thecountry’s manufacturing work forceand less than 8% of its skilled man-ufacturing workers. Yet, based onU.S. Bureau of Labor Statistics data,the global consulting group estimatesthe skilled worker shortage couldworsen to 875,000 workers by 2020.

While automation can help companies offset a short supply ofworkers, it doesn’t eliminate theneed for skilled laborers, accordingto Michael Marlowe, managing director and director of governmentrelations for the Automation Feder-ation, a manufacturing and processautomation association based inNorth Carolina. If anything, manyautomated processes require workersto have even more training to runthe complex machines behind them.

“For the automation processes towork from the operational and safe-ty aspects, you need the men andwomen skilled in the automationprofession to make it happen,” Mr.Marlowe said. ■

corporate securities group at lawfirm Dechert LLP of New York. “I’mgetting lots of term sheets.”

None of the companies provideddetails saying why they wanted totake on debt to pay big dividends.

However, the sources who spokewith Crain’s said most companiesengaging in so-called dividend recapitalizations are doing so forthe same reasons: Credit is cheap,taxes might go up and the ownersbelieve the companies are strongenough to handle more debt.

The idea of a business taking ondebt without reinvesting the moneyis controversial. For instance, someof Mitt Romney’s opponents havebashed him for doing so during histime at private equity firm BainCapital. The sources who spoke withCrain’s, however, say most compa-nies doing dividend recaps these daysare healthy enough to handle them.

“You don’t see sick companiesdoing this,” said Gregory Gale, apartner at law firm Squire Sandersin Cleveland. “You see healthycompanies doing this.”

Eye on the electionHyland, AssuraMed, TransDigm

and Aleris are profitable and shouldbe able to make payments on thenew debt, according to credit ratingsagencies Moody’s and Standard &Poor’s. However, S&P did lower AssuraMed’s corporate rating by onelevel, as did Moody’s with Aleris.

According to Moody’s and S&P:■ Hyland plans to raise $395 mil-

lion to refinance debt and pay a $94million dividend to shareholders.

■ AssuraMed — which formerlywas known as Edgepark Medicaland in 2010 was sold for nearly $900million to private equity firms Clay-

ton, Dubilier & Rice and GoldmanSachs Capital Partners — plans toraise $660 million in new debt.About $400 million will be used torefinance existing debt, but thecompany plans to use the rest to issue a dividend.

■ TransDigm announced last weekthat the company had raised $550million through the sale of seniorsubordinated notes and had securedan incremental term loan of $150million. The publicly traded com-pany plans to use most of the money to pay a special dividend of$12.85 a share. The company as ofJune 30 had roughly 53.9 millionshares outstanding, so by that measure, TransDigm would pay outroughly $692 million with the special dividend.

TransDigm conducted a dividendrecap three years ago. Hyland didone two years ago, as did Aleris,about eight months after it emergedfrom Chapter 11 bankruptcy.

AssuraMed, the only companythat provided comments for thisstory, said in a statement that itwanted to do the deal because of “thefavorability of the capital marketsand the relatively high cost of ourexisting debt.”

That’s probably the main reasonwhy companies are pursuing divi-dend recaps these days, said Mr.Gale, of Squire Sanders.

Many companies also are worriedthat the federal government — whichis expected to engage in a big budgetdebate after the election — could letthe Bush-era tax cuts expire, whichwould cause tax rates on invest-ment income to rise. The chancesof that happening are higher if Pres-ident Barack Obama is re-elected,said Mr. Alicandri, of Dechert.

“Everybody’s concerned with

who’s going to be the next presidentand how much the tax rates are going to be,” he said.

In controlMost companies doing dividend

recaps have been fairly conserva-tive, Mr. Alicandri said. Few busi-nesses engaging in such transactionsend up with debt levels that are seven or eight times greater than theirannual earnings, which is a partic-ularly high ratio, he said. After thedeals are finalized, the four localcompanies would have debt-to-earnings ratios that are at leastslightly lower than that range.

“I’m not seeing things that areout of control,” Mr. Alicandri said.

Most companies that do dividendrecaps are able to make their debtpayments because they had to behealthy to get the loans in the firstplace, Mr. Gale said. However, theymight have “a little less flexibility” ifsales drop, he added.

Companies that pursue dividendrecaps are less likely to make acqui-sitions or other large investments,said Matthew Bristow, managingdirector at ClearRidge Capital, aninvestment bank in Tulsa, Okla.However, TransDigm’s 2009 recapdidn’t slow it down too much: Thecompany two years ago paid $1.27billion for McKechnie AerospaceHoldings Inc., and it has made othersignificant acquisitions since then.

Dividend recaps do hurt a com-pany’s balance sheet, but Mr. Bristowsaid shareholders who push forthem often have confidence in thebusiness: They think the companycan handle the new debt and will beworth more in a few years. Other-wise, they’d sell it now.

“It’s a positive reflection on theinvestment,” he said. ■

Automation: Workershortage could worsen continued from PAGE 3

continued from PAGE 1

Recaps: Capital markets favorable



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“We’re receiving hundreds ofboxes a day from … physicians acrossthe U.S.,” Mr. Orville said.

In addition to Mutual CapitalPartners, which invests in compa-nies that already have a steady revenue stream and appear readyto expand, Cleveland HeartLab re-ceived capital from most of its existing

investors as part of this latest investment. Included in that mix areExcel Medical Ventures and Health-Care Ventures LLC, two Bostonventure capital firms that last yearled an $18.4 million investment inCleveland HeartLab. The ClevelandClinic also participated.

The company has raised about$38 million since it was founded in

November 2009.Cleveland HeartLab began to

expand its sales and marketing efforts in August, when it hired three new executives, includingStephen A. Massaro, vice presidentof sales.

Most of the samples the companytests come from the South and themid-Atlantic regions of the United

HeartLab: Company eyes bigger footprint States, where heart attacks andstrokes are more common, Mr.Orville said. Now the company wantsto increase sales in other parts ofthe country. Plus, Cleveland Heart-Lab plans to do more marketingthrough events and groups focusedon health and wellness, he said.

Cleveland HeartLab also plans touse the money to develop and license more proprietary tests, Mr.Orville said. The company made itsdesire to expand its product lineupclear in August: The other two

executives it hired that month wereDeborah H. Sun, vice president oflaboratory operations, and Cory Bystrom, director of research anddevelopment.

Cleveland HeartLab is targeting abig market, and it has a great man-agement team — and a lot of otherassets, said Wayne Wallace, generalpartner at Mutual Capital Partners.

“They have a great brand, theyhave a great platform, they have agreat pipeline and lots of happycustomers,” Mr. Wallace said. ■


Kent State universities showing gainsbut the University of Akron andYoungstown State University seeingdeclines.

Community college officials saythe downward pressure on enroll-ment was expected once the reces-sion’s grip started to loosen andfewer people sought to enhancetheir job skills and employmentprospects by heading back to theclassroom. Thus, the declineswon’t force drastic staff reductionsor budget cuts. One reason is thatmuch of the academic muscle atcommunity colleges is in the formof adjunct, or part-time, facultyhired on a class-by-class basis.

“This is part of a cycle we’re allgoing through,” said Tracy Green,vice president for strategic and institutional development at LorainCounty Community College. “Wehave weathered this before, but itgives us an opportunity to examinewhat types of programs we need tooffer students so we can stay relevant.”

Don’t leave — please!Community college officials say

their students — often parents carrying full-time jobs and other responsibilities — are harder to retain than those at traditionalfour-year institutions, and the datasupport those claims.

The first- to second-year reten-tion rate for the state’s communitycolleges, for example, hovers at atepid 52%, according to the mostrecent data compiled by the OhioBoard of Regents. The retentionrate for Ohio’s selective public uni-versities stands at 84%, while theretention rate at those with openadmission policies averages 65%.

“Community college studentshave so many priorities,” Tri-C’sMs. Miller said. “If they don’t haveassistance with jobs or children orwhatever else they have going on,that in many cases prevents themfrom coming back to us.”

To plug those holes in which theylose students, community collegesare taking a more activist approachat shepherding the most at-risk stu-dents toward degree completion.

Tri-C, for instance, last year startedoffering practice tests for the col-lege’s placement exams. The idea,

according to Ms. Miller, is to placemore students into college-levelcourses rather than remedialcoursework.

“It saves them dollars in the longrun and shortens their time to completion,” Ms. Miller said. “All ofthose things affect whether some-one stays in school.”

Lakeland Community College,which saw a 3.16% enrollment decline this fall, now requires students testing into remedial Eng-lish to complete that coursework intheir first semester. The hope is thatby fine-tuning those language skillsearly on, students will use thatfoundation in other coursework.Also, Lakeland is offering new stu-dent orientation programs that focuson honing students’ study and timemanagement skills.

“We’re really focusing on the in-coming students, making sure firstsemester get off on strong footing,”said William Kraus, Lakeland’s asso-ciate provost for enrollment man-agement.

Give us the adultsMs. Green at Lorain County

Community College suggested thatcommunity colleges don’t existsolely to award degrees but also togrant certifications and other cre-dentials. Consequently, her schoolis exploring new programs relatedto the shale boom, which couldbring more students to its campus.

“If a student has a degree, theireducation is not necessarily over,”Ms. Green said. “Their return to ourcampus might be for a specific skillset, so we have to keep our fingers onthe pulse of what those might be.”

Meanwhile, the number of students at Kent State University’sseven regional campuses, which serveas the institution’s in-house com-munity college network of sorts,has trended downward over the lasttwo years. Systemwide enrollment,however, has been buoyed by theexplosive growth of the university’smain campus in Kent.

This fall, Kent State’s only regionalcampus to see an enrollment increase was its Geauga campus inTwinsburg — also the university’sonly location falling outside theMarcellus shale area, where oil andgas exploration has boomed using

hydraulic fracturing, or fracking. Assuch, a portion of the enrollmentdeclines at the six other regionalcampuses could be chalked up to anincrease in available energy-relatedjobs, said Wanda Thomas, the university’s associate provost forsystem integration and dean of theregional college.

To cope with those declines andan expected dip in high schoolgraduates as the children of babyboomers age beyond their teenyears, Dr. Thomas said Kent State isramping up its efforts at recruitingnon-traditional college students —adults. At present, about 60% of thestudent body at the university’sseven regional campuses is com-prised of students enrolling rightout of high school, while the rest ismade up of what Thomas called“adult learners.”

To increase that adult learnerheadcount, Dr. Thomas said KentState has made a big push to marketits bachelor of technical and appliedstudies degree — a broad academicoffering designed for someone whoat one time or another earned somecollege credit. ■


Drop: Dip in high school graduates leads schools to adults


The skinny on Hyland’s hefty debt plans■ Hyland Software Inc. plans to take on debtto pay a $94 million dividend to its share-holders, but the Westlake company appar-ently can handle it.

Northeast Ohio’s biggest software company had sales of $234 million in the 12months that ended June 30, according tocredit ratings agency Standard & Poor’s,which released a document evaluating thedeal (read more about it on Page One). Thatfigure is up 25% from $186 million in the likeperiod a year earlier, the document stated.

The S&P document also provides a roughglimpse of the privately held company’searnings. The content manage-ment software provider plans tosecure $395 million in debt,with about $300 million goingto refinance existing debt.Once the deal is done, thecompany’s debt will be fivetimes higher than its annualearnings before interest, taxes,depreciation and amortization, or EBITDA.

As long as Hyland Software is refinancingall of its debt, that puts its EBITDA at about$79 million.

Hyland shouldn’t have a problem makingpayments, given its steady cash flow, S&Psaid. But the agency noted that it expects thecompany to put a higher priority on makingacquisitions and other investments in thenear future, as opposed to paying downdebt. It also said Hyland needs to demon-strate “a more consistent financial policy.”

The company, a majority of which is

owned by private equity firm Thoma Bravo,two years ago took on $225 million in debtand issued a $114 million dividend. Thecompany recently scrapped a proposal thatwould have involved taking on debt to financea $268 million dividend; going that routemeans Hyland would have taken on debt inexcess of its annual EBITDA by about seventimes, which is considered high. — ChuckSoder

Think of it as weight control■ And now for a weighty matter in theweight loss business.

Akron-based Physicians Weight LossCenters of America Inc. has sueda similarly named company in NewYork for trademark infringement.

Filed Oct. 18, the lawsuit asksthe court to enjoin PhysiciansWeight Loss Clinic of HuntingtonVillage, N.Y., from infringingthe Akron company’s federallyregistered trademark (“Physi-

cians Weight Loss Centers”) and to award itprofits derived from the defendant’s use ofthe mark. The suit also asks that www.physi-cians weightlossclinic.com — the websitedomain name used by the New York compa-ny — be assigned to the plaintiff.

Both companies offer weight reductionand control services, according to the law-suit, and the defendant’s use of the trade-mark “is likely to cause confusion … and tomislead the public into believing that defen-dant’s services are approved, sponsored orauthorized by plaintiff.” Physicians Weight

Loss Centers alleges its Akron office alreadyhas received complaints due to the othercompany’s infringement.

John D. Gugliotta, a patent attorney inRichfield, sees hurdles for the plaintiff. Forone, the names are different, and the argu-ment can be made the New York company’sname is merely descriptive of what it does.

“I don’t think it’s a nuisance suit, but Ialso don’t think it’s a slam dunk,” said Mr.Gugliotta, who is not involved in the case.“It’s going to come down to whether there’sa likelihood of confusion between the two.”

Calls placed to one of the Akron company’sattorneys and to the New York company’soffice were not returned as of Crain’s dead-line last Friday, Oct. 19. — Michelle Park

All hail this tale: Dale’sPale Ale is for sale here■ New data from the Washington, D.C.-based Beer Institute show Ohio ranked No.7 in 2011 in beer shipments. However, agrowing Colorado brewer is banking onOhioans’ consumption habits as it shipsbeer into the state.

Coincidentally timing its release withCleveland Beer Week, which launched lastFriday with events across the region, OskarBlues has partnered with Superior BeverageGroup in Glenwillow to distribute its Dale’sPale Ale in the Buckeye State.

Oskar Blues says it was the first brewer tocan its craft beer over 10 years ago. It recentlyexpanded its distribution to Chicago andAlabama with the help of a new North Car-olina brewery, the capacity of which shouldreach 40,000 barrels next year. — Joel Hammond

WHAT’S NEW

THE COMPANY: The Garland Co.,ClevelandTHE PRODUCT: Quick-Slope modified acrylic cementitiousmaterial

Garland, a maker of roofing and buildingmaintenance products for the commercial,industrial and institutional markets, describesQuick-Slope as “an easy-to-apply material thatredirects or disperses harmful standing wateron low-slope modified bitumen roofing.”

The Quick-Slope material “is designed toreduce and redirect water toward existingscuppers or drains,” according to Garland.“It can also be used to provide increased localized slope.”

The company says Quick-Slope “is a cost-effective alternative to adding drains or crickets,and provides a tenacious bond to new or existing smooth or mineral roof systems.” Italso can be added to pond areas “to help water travel in multiple directions, therebyspeeding up evaporation.” Once a surface iscleaned and prepared, Garland says, “theproduct can be troweled out in minutes, withoutremoval of existing roofing material.”

Garland product manager Rick Catley saysQuick-Slope “is low-odor and non-volatile, soit can be applied without any disruption to theworkplace, and with minimal waste.”

For information, visit www.GarlandCo.com.

REPORTERS’ NOTEBOOKBEHIND THE NEWS WITH CRAIN’S WRITERS

THEINSIDER

THEWEEK OCTOBER 15 - 21

Jimmy loves the Cleveland Browns:Now Jimmy Haslam can get down to charting

the course for the immediateand long-term futures of theCleveland Browns. The chair-man and former CEO of PilotFlying J — the behemothKnoxville, Tenn.-based opera-tor of truck stops his dadfounded — officially was approved as the new owner ofthe Browns at a meeting of theleague’s owners in Chicago.

He needed only 24 of 32 owners’ votes, and wasapproved unanimously. See editorial, Page 8.

A full Spectrum: Medical equipment makerSteris Corp. of Mentor acquired two companies— including one based in Northeast Ohio — fora total of $110 million. Both Spectrum SurgicalInstruments Corp. of Stow and Total Repair Express LLC of Hillsborough, N.J., provide sur-gical instrument repair services and instrumentcare products. The two companies are expectedto generate a combined $72 million in revenueduring 2012, producing net income of about $7million, or $11 million excluding one-time costs.

Back at it: Ben Venue Laboratories said it “resumed production on a limited number ofmanufacturing lines” at its complex in Bedford.The move represents the end of a year-long shutdown. Ben Venue, which has 1,400 employees,voluntarily stopped producing drugs last fall soit could address quality control issues identifiedby the U.S. Food & Drug Administration and international regulators. The company has spentabout $300 million to upgrade its facilities andchange its processes since May 2011, when theFDA released its first inspection report.

The French connection: The GoodrichElectric Power Systems plant in Twinsburg willchange hands as part of Goodrich Corp.’splanned sale of its electric power systems business to Paris-based Safran. The Frenchaerospace and defense company has agreed toacquire Goodrich Electric Power Systems, a supplier of on-board aerospace electrical powersystems that’s based in the United Kingdom, for$404 million. Goodrich Electric employs about560 people, 100 of whom work at the Twinsburgplant at 8380 Darrow Road.

Sea change: Parker Hannifin Corp. agreed toacquire Sea Recovery, a maker of reverse osmosissystems for sea water desalination, from Dan-foss A/S of Denmark. Parker did not say what itwill pay for Sea Recovery, which is based inCompton, Calif. Sea Recovery is a 70-employeebusiness that had sales of $26 million in the 12months that ended Aug. 31.

Read all about it: Case Western ReserveUniversity received another significant gift forits Kelvin Smith Library. Marian K. Freedmanand her family added a gift of $500,000 to theSamuel B. and Marian K. Freedman Library En-dowment fund that is conditional on matchinggifts from other university contributors. Theuniversity said matching funds have been se-cured, bringing the total endowment to $1 mil-lion. Earlier this month, the university secured a$5 million gift from an anonymous donor.

This and that: The National Association ofSeed and Venture Funds, which has close ties toLorain County Community College, is mergingwith a nonprofit in the Columbus area, the West-erville-based State Science & Technology Insti-tute. … OurPet’s Co. received a U.S. patent forthe Durapet technology related to “non-skidmaterial permanently bonded to the base ofmetal pet bowls.” The pet supply companybased in Fairport Harbor said utility patents alsoare pending in Canada and other countries.


BEST OF THE BLOGSExcerpts from recent blog entries onCrainsCleveland.com.

If you have to askhow much it costs …■ We’ve known for a long time that collegecosts are out of control, but that doesn’t diminish the shock of a new list of the stickerprices of the country’s 100 most expensiveschools for the 2012-13 academic year.

CampusGrotto.com ranked schools witha “total costs” comprising tuition, room andboard, and required fees. (The website didnot attempt, though, to find out what per-centage of students actually pay that listprice. Given the prices, it’s hard to imaginemany students pay the full price.)

Two Northeast Ohio schoolsare in the top 100: Oberlin College, at No. 25,with a total cost of$57,025, and CaseWestern Reserve Uni-versity, at No. 100, with atotal cost of $52,926.

The most expensiveschool in the country isSarah Lawrence College inBronxville, N.Y., where, withoutdiscounts, a year will set you back$61,236.

Mitt’s next song could be‘Me and My Shadow Senator’■ Sen. Rob Portman isn’t on the Republicanticket — it’s Rep. Paul Ryan who had thehonor of enduring 90 minutes of hell withJoe Biden — but the Cincinnati political veteran has emerged as something of a“shadow running mate” for GOP nomineeMitt Romney.

BusinessWeek.com noted that Sen. Port-man is the most powerful Romney surro-gate on the campaign trail and is a frequent

presence in ads.“It’s tempting to suspect that the Romney

campaign is intentionally burying Ryan because he’s turned out to be a liability,”wrote political analyst Joshua Green.

“Conspiracy theorists might suspect thatRomney’s advisers, some of whom didn’twant Ryan on the ticket and preferred Port-man or Tim Pawlenty, are passive-aggres-sively having their revenge,” he wrote. “Myown hunch, though, is that Romney’s shadow running mate in these ads is reallya reflection of how vitally important it is forRomney to win Ohio.”

Did you get this much outof your history textbooks?

■ Need to convince your kid to read?Maybe this story will provide

him or her with someincentive.

Mental_floss, agrowing national magazine

with business operations inGeauga County, shared on itswebsite an email it receivedfrom reader Erik Dresner

about his experience on thegame show “Jeopardy!”

The correspondence was a bit long, but atbase, it came down to this: A mental_flossstory Mr. Dresner read on an airplane aboutthe modern opera “Nixon in China” helpedhim correctly answer a Final Jeopardy! ques-tion in the category of … Modern Opera.(Sometimes you just get lucky.)

His winnings? More than $22,000.Mr. Dresner’s email ended with a decla-

ration any publisher would love to hear: “Sothanks to you, mental_floss, I can forevercall myself a ‘Jeopardy!’ champion, even ifit’s just for one day. If I wasn’t already plan-ning on being a lifetime subscriber, that cemented it.”

Haslam



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