Corrections or additions?
These articles by Barbara Fox were prepared for the March 21, 2001
edition of U.S. 1 Newspaper. All rights reserved.
Exide Technologies Moves to Carnegie Center
Princeton is not known to the world as an energy
but it probably has more than its share of energy-related companies:
Hydrocarbon Technologies on New York Avenue off of Route 1, Energy
Photovoltaics on Bakers Basin Road, BlackLight Power on Edinburgh
Road, Millennium Cell in Eatontown, and Knite Inc. at Princeton
Plaza, to name a few. Now another one is moving to Princeton, and
this one is big: Exide Technologies.
Exide is the largest manufacturer of lead acid batteries in the world.
It owns the Champion battery brand, thanks to buying Atlanta-based
GNB last fall. It numbers Ford, Daimler Chrysler, Fiat, and Toyota
among its automotive customers, and it does private label batteries
for Walmart, Sam’s Club, K-Mart, Pep Boys, and NAPA.
This company has roots in Princeton that are not widely known: Until
10 years ago, the CEO of GNB, Stanley Gaines, maintained a small
at 330 Alexander Street because he lived here.
Now that Exide and GNB are consolidating, the 300-person headquarters
of Exide is moving out of Reading, Pennsylvania. Some of those staff
members, particularly in the finance area, are moving to about 21,000
square feet at 210 Carnegie, a space formerly leased by Covance. Craig
H. Muhlhauser, president and COO, and Kevin Morano, executive vice
president, currently have temporary quarters at 214 Carnegie Center.
Walter Schoenberg of Cushman Wakefield in East Rutherford represented
"The consolidation will help us get closer to our customers and
to be more efficient," says Michael Geylin, Exide’s director of
corporate communications. "As we move parts of our business into
the field, we are getting our corporate staff closer to their
customers, the banks and financial institutions on Wall Street."
The $3 billion company has 20,000 people overall, and of the 300
in Reading, about 50 will end up in Princeton. Among its products
are 42 volt systems for transportation, backup power for
industry, and batteries for submarines, electric buses, and floor
scrubbers. Its competitors include Johnson Controls for transportation
batteries and C&D for industrial products.
Muhlhauser took over as president and chief operating officer at Exide
last summer. He is a 1971 graduate of the University of Cincinnati,
where he also earned a master of science degree. He worked at General
Electric, United Kingdom-based Lucas Industries, Asea-Brown-Boveri,
United Technologies Corporation, and most recently for Ford Motor
Company in Dearborn, Michigan, where he was president of Visteon
The company was shaken when Exide suffered bad publicity over reports
that used batteries were being sold as new at Sears and other
Then Robert A. Lutz, a hotshot from Chrysler, was brought in to turn
the company around. As vice chairman, president, and COO of Chrysler
Corporation, he gets the credit for the popular Dodge Viper and
Chrysler’s second renaissance. His book "Guts: the Seven Laws
of Business That Made Chrysler the World’s Hottest Car Company,"
was well reviewed.
As for those other technology companies, Energy Photovoltaics is the
solar cell alternative/fuel company, and Millennium Cell is working
on borohydride batteries. BlackLight Power has the controversial
for hydrino hydride compounds. Hydrocarbon Technologies and Knite
Inc. are featured in the venture fair coverage starting on page 10
of this issue.
08540. 609-919-0817; fax, 609-919-4988. www.exideworld.com
Cambrex, a global supplier of products and services
to the life sciences industry, has moved a division to 42,000 square
feet at the Technology Center of New Jersey, the high tech space in
North Brunswick developed by the New Jersey Economic Development
Cambrex is based at the Meadowlands Plaza in East Rutherford and will
move its subsidiary, Chiragene, from Warren to the new center in North
Brunswick. Cambrex has two other firms in New Jersey: CasChem in
and Cosan Chemical Corporation in Carlstadt. Other operations are
BioWhittaker in Maryland, chemical firms in Pennsylvania, Connecticut,
Iowa, and Michigan, and a firm called Nepera in Harriman, New York.
The North Brunswick laboratory is going to be called Cambrex’ Center
of Technical Excellence and represents a brand-new research and
division. The company calls it "a full-service resource to
and biotechnology companies throughout the drug development
Among the technologies to be housed here are biocatalysis, general
synthesis leading to chirality, new tools for lead optimization (such
as cell-based toxicity screening), rapid throughput and high
screening for protenomics, novel drug delivery systems,
new tools for molecular biology, and online endotoxin monitoring.
Already in place is 20,000 square feet with a laboratory; the next
stage is a pilot plant and a general purpose laboratory. The CEO of
Cambrex, James Mack, says that the Center of Technical Excellence
"will provide dynamic synergies in scientific and engineering
knowledge to help our customers optimize drug leads, determine
pathways, and develop and optimize manufacturing processes in a cGMP
Cambrex saved $3.1 million by taking advantage of the $100 per square
foot tenant facility improvement allowance provided by the EDA. Other
perks include lower interest rate financing, direct loans, loan
EDA-provided bond financing, and other incentives. Tenants here also
qualify for access to services and facilities provided by Rutgers
University on a fee-for-use basis. Tim Lazura and Frank Luccesi of
NJEDA and Sab Russo and Tom Sullivan of CB Richard Ellis in Iselin
took care of the deal.
Next month the EDA breaks ground for an 80,000 square foot building
that will include 20,000 square feet, called the Commercialization
Center, for alumni of incubator facilities or small high tech firms.
Modules will be available that are as small as 800 square feet.
is being done by CB Richard Ellis and costs $27.50 for the larger
space, with price to be determined on the smaller spaces.
"We found the Tech Center particularly appealing because its
along the Route 1 corridor is near one of the largest concentrations
of pharmaceutical companies in the world," says Cambrex’ Carroll.
Center of New Jersey II, North Brunswick 08902. Ron Carroll, vice
president of technology. 732-447-1900; 732-447-1910. Home page:
Asked five years ago about selling out to a larger
Kenneth Kay said, "Most software entrepreneurs are stubbornly
independent and would rather make less money than be an employee.
But everyone has their price."
Two companies slated to be acquired by Microsoft have found Kay’s
price. FRx and Great Plains Software (Nasdaq: GPSI) will pay $7.8
million in stock for ebudgets.com, which has 19 employees, all but
two at the Princeton Meadows Office Center on Plainsboro Road.
known as the Helmsman Group, it will keep its ebudgets.com name and,
as of now at least, retain its identity and location. Great Plains
Software, of Fargo, North Dakota, is the parent company to
FRx and has 130,000 people. Microsoft expects to buy Great Plains
When contacted last week, just after the sale of his firm was
Kay said, "In my case, since the IPO market had melted down, being
bought was clearly the most likely scenario."
The son of a Korean diplomat, Kay majored in finance at the University
of Chicago, Class of 1978, and earned his MBA there as well. He
his company in 1989, and its clients are firms that do $50 million
to $1 billion in sales and need budgeting, forecasting, and planning
software (U.S. 1, June 16, 1999).
Kay’s Helmsman product allows users to control expenses and set
limits to keep the budget aligned with corporate goals. For instance,
the software can monitor employee purchase requests in real time and
take steps to control spending before an unauthorized or "over
budget" item is purchased. It is also easily revised, so any
are immediately reflected in the procurement system. Managers can
collaborate on budgeting in real-time by using their web browsers,
user bulletin boards, automated E-mail reminders, shared documents
in collaborative folders, and posted budgeting instructions.
Back in 1995, Kay was saying that software was an industry "where
you can find a niche, do an IPO, and get everyone happy. If you get
into a niche market and have a leading product, growth is almost
Early in 2000 he began to push to get his company noticed, whether
by investors or potential buyers. "We changed the name at the
beginning of 2000 to try to ride the wave in the dot com arena, and
the ebudgets name itself attracted a lot of attention," says Kay.
"In retrospect I should have taken an earlier deal because I could
have been a much wealthier man," says Kay. "The reason I
sell last year was entrepreneurial pride. I felt I could grow the
business better on my own and sell out later. But when FRx became
part of Microsoft, the whole equation changed. I was faced with
against a division of Microsoft, and that would be a game that I would
Kay doesn’t mourn his lost opportunity, because it would have been
riskier. Here’s how it went: He was contacted by FRx when FRx was
poor. When FRx was bought by Great Plains last year, it turned into
a more likely suitor. Just when Kay was ready to proceed to the altar,
the price of Great Plains stock dropped. Once as high as 70, it was
28 when the offer was made, and then plummeted to 20.
"They had disappointed Wall Street with the earnings and
they had made. Since then they have turned around and the stock is
now near 60." When Kay spurned the offer, they turned to another
company, Sage Software, for a budget product. "But at the chapel,
something broke out. In January we restarted negotiations."
The current deal is priced the same as the Kay’s earlier deal but
involves a lower number of shares. "Last year’s deal would have
doubled my price," says Kay, "but it was a much riskier
back then. Many companies that sold in the dot com boom ended up
Kay plans to stay for the year required by the contract and then start
yet another venture. "I have an inside look on what Microsoft
is doing, I have connections, I can get funding on my own terms,"
says Kay. "I’m like a kid in the candy store."
Plainsboro 08536. Kenneth Kay, president. 609-275-9416; fax,
Home page: www.ebudgets.com.
Second Floor, Princeton 08540. Kevin Briody, partner. 609-452-6000;
Tom Gallagher, Kevin Briody, and John Butler moved their law firm
from the fourth floor of Carnegie 212 to the second floor of Village
Boulevard. The 20-person firm has 10 attorneys and practices law in
the areas of securities, corporate, litigation, commercial, and
and wills. Also in this building are IndustryClick and Kemper
Street, Research Park, Princeton 08540-1512. Joseph R. Fallon,
609-683-4848; fax, 609-683-0129. Home page: www.elminc.com.
The environmental consulting firm has a new engineering division,
Princeton Planning and Engineering, headed by Kenneth Hart. It will
work in site plan preparation, regional planning, and municipal
services. "Now we can offer our clients more of a turnkey
says Joseph Fallon, president of ELM Inc. "At the same time, we
are now also able to offer our engineering and planning services to
a broader base of private developers and municipalities."
With 30 workers and branch branches in Boonton, New Jersey, and
Pennsylvania, ELM is a full service environmental engineering and
risk management firm that focuses on site investigations and
of commercial and industrial sites. It recently received a national
award for a development project in Edison.
Kathleen Coviello, vice president and manager. 609-538-1888; fax,
609-538-9403. Home page: www.techbanc.com.
Steven D. Hobman and Kathleen Coviello have opened a technology
of Progress Bank on Scotch Road. TechBanc’s customers come from such
industries as manufacturing, healthcare, and software development.
"We’ve been doing business in New Jersey for the past two years,
and have found it to be an excellent market for emerging growth
especially those that are technology-based," says Hobman, senior
vice president. He is an alumnus of Franklin and Marshall, Class of
1983. "The new office communicates to existing and potential
that we’re very serious about doing business in New Jersey. TechBanc
will help to ensure that tech companies are able to continue to offer
existing technologies while investigating and pursuing new ones."
Coviello majored in business administration at Albright, Class of
1988, and focused on finance and accounting for her MBA at LaSalle.
Her mother was a bank teller and her father was the vice president
of an international plastics distribution firm. (U.S. 1, March 29,
Based in Blue Bell, Pennsylvania, Progress Bank is known for its
to work with venture-backed emerging growth businesses. It has its
roots in Norristown, Pennsylvania; it went public in 1983, and until
five years ago was known as Progress Federal Savings. As a thrift
bank it has an unusual focus on banking services for small to medium
businesses and entrepreneurs, and it qualifies as a New Jersey
Development Authority approved lender. It has 18 branch offices, is
a founding sponsor of Early Stage East and a First Tier Partner for
e-Consortium, a virtual partnership of leading service providers for
emerging growth companies.
"We understand the dynamics of the VCs (venture capitalists),
but we are not VCs," says Coviello. "We still take collateral,
still expect to be repaid, and we still do senior debt financing,"
(meaning that the bank gets repaid before the investors do).
Coviello says she likes to watch a company grow from early stages
to a successful IPO — "especially when you see a management
team enjoy the fruits of the labors." To pick winners, she says,
"we look at the management teams, at who their investors are,
and their track record. Management is key."
Suite 4A, Princeton Junction 08550. Scott Peters. 609-716-8011; fax,
609-716-8608. Home page: www.clemensconstruction.com.
Numerous jobs from Princeton-area companies have jump-started the
new New Jersey office of Clemens Construction. It has no fewer than
five jobs from Commerce bank, plus fitouts for UCCNet and the law
office of Hale and Dorr, which is new at 650 College Road. Among the
more fantasy laden jobs was the dance/banquet pavilion at Rat’s
and a gypsy wagon entrance for the vestibule at Rats. It also
and built Atlantic Clubs, health clubs, in Wall Township and Red Bank.
Scott Peters, the New Jersey division manager, studied construction
management at Drexel, Class of 1992. The 22-year-old company has its
headquarters on Walnut Street in Philadelphia. Its three-person office
supervises construction crews from 1,200 square feet on Clarksville
08512. Dan O’Connell, general manager. 609-655-9950; fax,
Home page: www.courtyard.com.
Owned and managed by Ocean Properties Limited in Portsmouth, New
this new Marriott facility is scheduled to open April 1 in South
It has a Cranbury mailing address. Each of the 144 rooms has a
seating area with sofa bed, a large work desk, and two telephones
with data ports.
300, Princeton 08540. Steven Weiss. 609-514-3681; fax, 609-452-8464.
Home page: www.ericdavid.com.
Steven Weiss put together a company, First Domain Names, to resell
domain names during the dot com explosion, but he found it to be less
profitable than he thought. His new company, at the same location,
does marketing services for the financial industry.
280, Princeton 08520. Mark I. Massad, senior partner. 609-924-7200;
fax, 609-924-7250. Home page: www.thehermesgroup.com.
Kelly Massad LLP and David J. Ambrose combined to form the Hermes
Group and were recently joined by Peter Croghan, formerly of
& Croghan on Route 1. The rest of Croghan’s office formed Bartolomei
437 East State Street, Trenton 08608. Lynne Azarchi, executive
609-599-4881; fax, 609-989-4846.
Lynne Azarchi succeeds Leslie Potter as executive director on March
1. She has been managing director of the division of the American
Society of Civil Engineers and a management consultant in Princeton.
An anthropology/archaeology major at Penn State, Class of 1975, she
has an MBA in marketing for nonprofits from Columbia.
and invaluable Watts General Store on Route 206 from 1924 to 1986.
and basketball coach at Princeton University for 55 years and recently
published his memoirs.
Corrections or additions?
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