Cambrex Moves To Tech Center

Helmsman/Ebudgets Sold for $7.8 million


New in Town

Management Moves


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 tenant.

"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.

Exide Technologies, 214 Carnegie Center, Princeton

08540. 609-919-0817; fax, 609-919-4988.

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Cambrex Moves To Tech Center

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.

Cambrex Corporation, 661 Route 1 South, Technology

Center of New Jersey II, North Brunswick 08902. Ron Carroll, vice

president of technology. 732-447-1900; 732-447-1910. Home page:

Top Of Page
Helmsman/Ebudgets Sold for $7.8 million

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, 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 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

this year.

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

truly lose."

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.", 666 Plainsboro Road, Suite 1236,

Plainsboro 08536. Kenneth Kay, president. 609-275-9416; fax,


Home page:

Top Of Page

Gallagher, Briody, Butler, 155 Village Boulevard,

Second Floor, Princeton 08540. Kevin Briody, partner. 609-452-6000;

fax, 609-452-0090.

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



Environmental Liability Management ELM, 218 Wall

Street, Research Park, Princeton 08540-1512. Joseph R. Fallon,


609-683-4848; fax, 609-683-0129. Home page:

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.

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New in Town

TechBanc (PFNC), 340 Scotch Road, Trenton 08628.

Kathleen Coviello, vice president and manager. 609-538-1888; fax,

609-538-9403. Home page:

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."

Clemens Construction Company, 231 Clarksville Road,

Suite 4A, Princeton Junction 08550. Scott Peters. 609-716-8011; fax,

609-716-8608. Home page:

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


Courtyard by Marriott, 420 Forsgate Drive, Cranbury

08512. Dan O’Connell, general manager. 609-655-9950; fax,


Home page:

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.

Top Of Page
Management Moves

Eric David & Sons Inc., 5 Independence Way, Suite

300, Princeton 08540. Steven Weiss. 609-514-3681; fax, 609-452-8464.

Home page:

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.

The Hermes Group LLP, 17 Hulfish Street, Suite

280, Princeton 08520. Mark I. Massad, senior partner. 609-924-7200;

fax, 609-924-7250. Home page:

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


Planned Parenthood Association of the Mercer Area,

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.

Top Of Page

Mary P. Watts, 98, on March 16. She operated the quirky

and invaluable Watts General Store on Route 206 from 1924 to 1986.

Edward J. Donovan, 91, on March 15. He had been a baseball

and basketball coach at Princeton University for 55 years and recently

published his memoirs.

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