Cohesant Announcement to Business Partners
TO: CuraFlo Dealers, RLS Certified Applicators, Cohesant Materials Customers
SUBJ: Cohesant Sells GlasCraft Subsidiary
Today Cohesant announced that it has signed an agreement to sell its GlasCraft subsidiary to Graco Inc. This transaction will be completed following shareholder approval in early 2008. In concert with this transaction, the company will drop “Technologies” from its legal name and will be known as Cohesant Inc. The new Cohesant will focus solely on its infrastructure protection and renewal businesses.
Cohesant Inc. will simplify its legal structure to more accurately reflect how the company’s businesses are organized:
- CuraFlo Franchising Inc. will be responsible for managing and supporting its CuraFlo’s franchisees and licensed dealers. Tom Fihe will continue to be responsible for the day to day operations of this business unit and his franchising team will be responsible for supporting all of CuraFlo’s franchisees and dealers.
- CIPAR’s Rehabilitation Services division will be consolidated into CuraFlo Services Inc. This subsidiary operates company owned franchises in Vancouver and Cleveland, as well as CuraFlo Spincast Services. Brian LeMaire will continue to serve as President of CuraFlo Services Inc. As President of CuraFlo’s largest Franchisee, Brian will continue to provide peer technical, sales and other advice regarding the operation of a CuraFlo business to our other dealers and franchisees.
- A new legal entity, RLS Inc., will be created to focus on providing solutions to the municipal market. RLS Inc. will have ownership and responsibility for the Raven brands and for the Raven Certified Applicator network. RLS will also represent the AquataPoxy and CuraFlo Spincast brands in the municipal market. RLS has already begun spreading this message to the market. Stewart Nance will serve as the Acting President of RLS Inc.
- Cohesant Materials has been merged into CIPAR Inc. and will be part of “new” Cohesant. This subsidiary will continue to manufacture Cohesant’s CuraPoxy, Raven and AquataPoxy products and other materials for RLS and CuraFlo Franchising. It will also continue to sell direct any non-exclusive AquataPoxy products to markets not served by CuraFlo and RLS.
Morris H. Wheeler will continue to serve as CEO of Cohesant Inc. and the rest of the Cohesant management team will be largely unchanged. Joanne Hughes, formerly the President of the Raven division, will join the Cohesant management team as a Director of Business Development. Joanne will also have responsibility for Technical Sales and Marketing.
Cohesant will be headquartered in Cleveland, OH along with CuraFlo Franchising and CuraFlo Services. The RLS business unit will remain headquartered in Tulsa, OK. Cohesant’s business and contractual commitments with Raven Certified Applicators, CuraFlo Franchisees, and CuraFlo Dealers and Cohesant Materials customers are unaffected by these organizational changes.
We believe there is significant opportunity for profitable growth in the pipe rehabilitation, infrastructure renewal and corrosion protection markets. The divestiture of GlasCraft is an important strategic move that will position Cohesant to focus exclusively on serving these markets. We are confident this focus will enable us to move more quickly to capitalize on market opportunities, and to better respond to the needs of our Certified Applicators, Franchisees, and Dealers and other customers.
If you have any questions or concerns about this announcement please contact us. We thank you for your patronage and look forward to a long and prosperous relationship with you as we work together to bring superior solutions to our customers.
Brian LeMaire and Tom Fihe – CuraFlo. Stewart Nance – RLS Inc.