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Detroit's top law firms PAGE 14
<OIIIIIIIICutting restaurant costs via computer PAGE 7
MichCon fuels growth of parent firm PAGE 3
WEEK OF FEBRUARY 11-FEBRUARY 17, 1985
Brokers say Highland is set to go public
Auto
supp6er for sale BY MATI' GRYCZAN and AMY BODWIN CRAINS DETROIT BUSINESS
BY MATI GRYCZAN
Ferro Manufacturing Corp., a Southfield-based automotive supplier, apparently is selling itself through the New York investment banking firm of Dillion, Read & Co., according to informed sources. Sources told Crain's Detroit Business that Ferro Manufacturing, which posted estimated sales of $110 million in 1984, has received bids from more than 30 of the nation's largest manufacturing concerns. An industry analyst said the purchase would be an acquisition of major proportions, considering that the sales price of manufacturing companies is from six to 10 times their earnings. Ferro reportedly had earnings after taxes of $11 million to $13 million last year. Several calls to Dale Offenbecher, president and manager of Ferro, were not returned. A See FERRO, PAGE 20
VOLUME 1 0 NO.2
CRAIN'S DETROIT BUSINESS
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Ousted VP seeks sale of Armada
DWIGHT CENDROWSKI
Retailers are offering exotic perks to woo customers, like the services of myomassologist Teresa Fortino at Birmingham's Queue beauty center, which also offers catered lunches and exercise classes. Story, Page 10 •
IRA STERNBACH Highland Appliance treasurer
because I'm not involved in that. I don't know when and if." Sternbach said the people who could cQmment on the possiblity of Highland going public were Eugene Mondry, the corporation's chief executive officer, or Mondry's brother, David, company president and owner. Both men were said to be out of town last week. Calls to Honigman Miller Schwartz & Cohn, a law firm in Detroit which lists Highland Appliance as one of its major clients, were not returned. A secretary who took calls said the attorney handling the Highland account had received the messages. Highland has stores in Michigan, Ohio, Indiana and Texas. CDe
Stroh plant likely to be razed
BY JANE WIDTE CRAIN'S DETROIT BUSINESS
A former director of Armada Corp. of Detroit, ousted last year for favoring the sale of the company, has bought 11.8 percent of the company's stock and says the manufacturer should be sold. Leonard Friedman, a former senior vice president and board member, disclosed his intentions in a 13D filing with the Securities and Exchange Commission . Friedman picked up small lots of Armada stock starting last June, and bought 80,400 shares - about 8.3 percent of the shares outstanding - on Jan. 28. In the filing, Friedman says the value of Armada common stock would be boosted by "selling all or See ARMADA, Page 20
Highland Appliance Inc. has been making arrangements to take itself public, local investment bankers say. But it looks as if the Taylor-based appliance chain will be selling its stock through a national brokerage house. Local investment bankers said it was common knowledge that Highland Appliance has been making arrangements in recent weeks to go public. A few said they had tried but failed to be named underwriter for Highland Appliance's offering. They said the retail chain was leaning toward national investment banking houses in New York City. Insiders say that Highland Appliance, a chain of 31 stores that sells appliances and electronic merchandise in four states, may soon announce a public offering. One analyst said Highland Appliance posted sales in the $150 million range last year. Ira Sternbach, treasurer of Highland Appliance, said: "As far as I know, it (going public) is still in the rumor stages. I cannot confirm the rumor
tI. cannot confirm the rumor because .'m not involved in that •• don't know when and if."
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BY MARY SOLOMON SMYKA and KATHY JACKSON CRAIN'S DETROIT BUSINESS
The announced closing of the Stroh Brewery Co.'s Detroit brewery, which shocked Detroiters and state officials Friday, means a reduction in the area's industrial base and less business for several kinds of companies. The plant closing by a company that has been one of the city's staunchest supporters means the loss of 1,000 jobs at Stroh's and $40 million in payroll. The closing dumps another million square feet of industrial buildings into a city that already has at least 10 million square feet unoccupied, industrial real estate brokers say. Stroh's 1 million square feet of brewery, bottling and warehouse buildings on Gratiot Avenue at 1-75 could come to a variety of ends. Mike Van Lokeren, of Hanzl, Kepic and Van Lokeren in Troy, who has had dealings with Stroh, says another
bottling company might buy the state-of-the-art, one-story bottling plant and the new warehouse and distribution plant. The location, near the freeway and Eastern Market, will help the sale, he said. Van Lokeren predicted that a historic preservation group would campaign to protect the original brewery with its elaborate offices, copper kettles and Pewabic tile work. The rest, in all likelihood, will be stripped of stainless steel vats and tubing, and razed. Several industrial realtors involved in the sale of smaller Detroit breweries, including Pfeiffer Brewing Co. and E&B Brewing Co. Inc., said that parts of each were converted to warehouses, and most of the remainder stripped of salvageable goods and demolished. Ralph Vigliotti of Ralph Vigliotti Realty Inc. on East · Peter Stroh's announceJefferson said the E&B brewery building was bought ment that the Stroh Brewby a beef processor who used the refrigeration ery Co. will close its Detroit facilities. plant stunned the commuSee STROH, PAGE 20 ~ nity.