Worcester Business Journal

4 Worcester Business Journal • August 17, 2015 www.wbjournal.com W yman-Gordon has a rich history in Worcester, dating back to 1883 when it was founded as a manufacturer of crankshafts for looms. Through many decades and industrial transformation, the company was able to stay rele- vant, evolving into its modern-day status as a manu- facturer of specialized, forged components made from titanium- and nickel-based alloys used by the aero- space and energy industries. Today, Wyman-Gordon employs about 550 in the region at operations in Worcester and North Grafton, and has facilities in a handful of other states. So when Berkshire Hathaway, the multinational holding com- pany owned by billionaire Warren Buffett, announced last week its plans to buy Wyman-Gordon's parent company, Precision Castparts Corp (PCC) in early 2016, in what will be the largest deal in Berkshire Hathaway's history, the buzz in Central Massachusetts was no surprise. What's in it for Berkshire Hathaway? In a statement, Buffett recognized PCC for its lead- ing edge in serving a specialized niche in the aero- space industry, saying he has long admired the Oregon-based company. "For good reasons, it is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports," said the 85-year-old Buffett, who is known for long-term value investing. His strategy is widely considered a gold standard for investors seeking to make wise decisions. What's Wyman-Gordon's history with PCC? PCC agreed to acquire all of Wyman-Gordon in 1999 for an estimated total of $825 million, according to a company statement released in May of that year. "The combination of our respective businesses should result in a stronger entity that will be able to capitalize on opportunities that we could not realize on our own," former Wyman-Gordon chairman and CEO David Gruber said at the time. Today, PCC sees the acquisition by Berkshire Hathaway as a "unique alignment between (Buffett's) management and investment philosophy" and the company's long-term management strategy, according to Mark Donegan, PCC's chairman and CEO. "This transaction offers compelling and immediate value for our shareholders, and allows PCC's employ- ees to continue to operate in the same manner that has generated many years of exceptional service and performance to our customers," Donegan said in a statement." Will this impact Central Massachusetts operations? It's unlikely operations in Worcester and North Grafton will change significantly, according to a spokesman for PCC. Letters were sent to all PCC employees when the deal was announced, stating that operations are expected to remain largely the same following the sale. n HOLLISTON — Life sciences firm Harvard Apparatus Regenerative Technology will work with a Connecticut hospital to develop a way to fix or replace a child's esophagus to treat life-threatening conditions, the Holliston firm announced. Harvard Apparatus (HART), which develops bioengineered organs for life-threat- ening conditions, will work with Connecticut Children's Medical Center in Hartford. One of the condi- tions to be treated is esophageal atre- sia, a rare disorder in which a child is born without a portion of his or her esophagus, a statement from HART said. NATICK — Wegmans will open a second Central Massachusetts super- market in 2017, moving into a prime spot in the Natick Mall that will be vacated by JC Penney, the Rochester, N.Y.-based grocery store chain announced. The store would become Wegmans' fifth in Massachusetts, the first of which is in Northborough, which opened in 2011. The space in Natick would take up 194,000 square feet on three floors, with most of it — 125,000 square feet — occupying all of the first level and half of the second. Wegmans will lease the remaining space to complementary tenants, the company said. Wegmans' fourth Bay State store, in Westwood, is scheduled to open this fall. MARLBOROUGH — Life sciences firm Ocata Therapeutics, working toward commercialization of a drug to treat a form of macular degeneration, substantially lowered its net loss for the second quarter, the company announced. Ocata said its net loss for the second quarter, which ended June 30, was $7.2 million, or 20 cents a share. Its loss in the second quarter of 2014 was $16.1 million, or 55 cents a share. But the company cited "signifi- cant progress" across the business, especially toward the start of second- phase studies of its treatment for Stargardt's macular degeneration (SMD) and dry age-related macular degeneration (AMD). WORCESTER — UMass Memorial Health Care has renewed and expand- ed its contract with an Atlanta-based services provider to help manage its supply chain and procurement opera- tions, the firm announced. The firm, MedAssets, said UMass Memorial agreed to a multi-year deal that will also include consulting, sourcing ser- vices and spending analytics. MedAssets said UMass Memorial, Central Massachusetts' primary health care system and the region's largest employer, has saved an average of $5 million a year since 2006 by working with MedAssets. WORCESTER — Worcester Polytechnic Institute has landed a grant for genetic research from the National Institutes of Health that will take aim at cancer cells, the school announced. The grant, $747,000, will help fund a three-year project that will explore the molecular mechanisms associated with the genetic mutations and chromosome instability observed in all cancer cells, according to a state- ment from WPI. The goal is to turn the genetic tables against cancer by learning more about the molecular basis of cancer cells' uncontrolled growth in order to improve the effec- tiveness of cancer treatments and the lives of cancer patients. SOUTHBOROUGH — Sales for Sevcon surged again in its third quar- ter as the maker of microprocessor- based controls for hybrid and electric vehicles reported strong customer demand from the automotive sector. Revenue jumped 6.2 percent, to $10.3 million, and would have topped $11 million had it not been for foreign currency fluctuations tied to a stron- ger U.S. dollar against European cur- rencies, the company said in a state- ment accompanying its report. Sevcon reported net income of $279,000, a jump of 26 percent over the third quarter of its 2014 fiscal year. For the first nine months, its revenue of $30.6 million is up nearly 10 percent over $27.9 million last year. MARLBOROUGH — Despite a slow- er quarter, ReWalk Robotics saw a revenue jump of more than 20 per- cent, but declared a $5.8-million loss as the manufacturer of robotic exo- skeletons for those with spinal cord- injuries seeks more customers. ReWalk, which also has a headquar- ters in Israel, took in $610,000 during the second quarter, which ended June 30, it said. That was up from $500,000 in the same quarter last year. It turned a $60,000 gross profit, a turnaround from a $225,000 loss. For the first half of 2015, ReWalk took in $1.25 million in revenue, up nearly 32 percent over last year. DEVENS — AMSC more than dou- bled revenue in the first quarter of fiscal year 2015, while cutting losses and expanding cash reserves. The global power grid and wind power company, formerly known as American Superconductor, reported revenue for the first quarter of fiscal 2015 of $23.7 million, compared with $11.7 million for the same period of fiscal 2014. The year-over-year REGIONAL BRIEFS >> Continued on next page Verbatim "This really floored me. I'm really sad that it's coming to an end." Fitchburg Mayor Lisa Wong, about a Fitch- burg Art Museum project, "The Alphabet," which ended Aug. 11. It was collaboration of typographers and other contributors who took over the design of the front page of the city's daily newspaper, the Sentinel & Enterprise, for 26 days. Source: Sentinel & Enterprise, Aug. 12 >> "We feel this is the cleanest and best way to put this to rest." Worcester City Manager Edward M. Augustus Jr., on the city's agreement to repay $3.4 mil- lion in federal grant funding to the U.S. Dept. of Housing and Urban Development, after an audit identified areas of noncompliance. Source: Telegram & Gazette, Aug. 8 >> "(The economy) is hugely important to the vast major- ity of middle-class America, who gets up every day and plays by the rules, does the right thing, and does not feel like they are getting ahead." Gov. Charlie Baker, before the Republican presidential candidates' debate Aug. 6, speculating on debate topics. Source: MassLive.com, Aug. 6 >> CENTRALMASS In Review BRIEFING: BUFFETT'S PIECE OF WORCESTER

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