Mainebiz

V O L . X X I I N O. I JA N UA R Y 1 1 , 2 0 1 6 6 Warmer temps mean tighter scallop market Unseasonably warm weather in December extended the lobster fi sh- ing season in New England, meaning fewer Maine scallops on the market, e Associated Press reported. e increased supply of lobster hasn't aff ected the price of lobsters, which are selling for $8 to $10 per a pound, but Maine scallops have been more expensive and harder to come by. Maine scallops usually cost around $20 per pound, but they're now selling sometimes in the $25-per-pound range, the AP reported. Bank tellers to help target fi nancial abuse of seniors A state-sponsored program to combat fi nancial abuse of seniors in Maine by training bank and credit union tellers has led to the reporting of 30 suspected cases so far. e program, called Senior$afe, was launched in early 2014 by the state, trade associa- tions and agencies involved in senior issues. Since its launch, the program has trained more than 300 tellers to identify and report suspected fi nan- cial abuse of seniors, according to the Portland Press Herald. More than 32,000 seniors in Maine age 60 and older are victims of fraud annually, according to the Press Herald. e Maine Bankers Association, along with the Maine Credit Union League, joined the Maine Department of Health and Human Services' Offi ce of Aging and Disability Services; the Maine Department of Professional and Financial Regulation; the state's Legal Services for the Elderly; and all fi ve Area Agencies on Aging in launching the program. Paper mill decline hurting logging elsewhere Vermont's logging industry is taking a hit from Maine's shrinking paper industry, the Times Argus of Barre, Vt., reported Jan. 3. "A signifi cant market that is drawing wood from all over the region is going to go away," Michael Snyder, commissioner of the Vermont Department of Forests, Parks and Recreation, told the Times Argus. " at represents a direct and signifi cant challenge for the work- force." ere are fewer than half the number of mills in Maine as there were in 1980. Nationwide, there are 326 mills versus 426 in 2005. Maine's population loses ground to N.H. Maine's static and aging popula- tion is a constant source of discus- sion. David Brooks of the Concord (N.H.) Monitor reports that New Hampshire's population has surpassed Maine's for the fi rst time since 1800. Darren Fishell of the Bangor Daily News points out that Maine's rate of deaths outpaces the birth rate. Why does this matter to Maine's businesses? We see it every day with employees retiring or business own- ers posting a "for sale" sign without the next generation available to step in. New Hampshire has grown by 14,000 people since 2010 and now has 1,330,600 people, versus 1,329,300 mil- lion in Maine, the Monitor reported. N O T E W O R T H Y S T A T E W I D E USDA Rural Development announced four Maine businesses received a total of $247,702 from the organization's Value-Added Producer Grant program. Cara Sammons, doing business as Flying Goat Farm, received $125,000; Maine Top Mill LLC, $49,990; Century Elm Farms, dba Boothby's Orchard and Farm, $48,299; and Aroostook Hops LLC, $24,413. The Maine Health Access Foundation in Augusta announced that Eastern Area Agency on Aging, SeniorsPlus and York County Community Action Corp. will received a total of $872,057 over three years in grant support as part of the foundation's Thriving in Place initiative to promote community efforts to assist people with chronic health conditions stay healthy and in their homes rather than needing hospi- tal or nursing home care. Kepware sold for $100M PTC, an Internet of ings technol- ogy company based in Needham, Mass., announced Dec. 23 it signed a defi nitive agreement to acquire Kepware, a Portland-based software development company that provides communications connectivity to industrial automation environments, for $100 million. e company stated the purchase agreement includes up to an additional $18 million based B U S I N E S S M A I N E Business news from around the state S T A T E W I D E S O U T H E R N Kennebec Technologies' owner sells fi rm to employees Kennebec Technologies, a precision machining company in Augusta, converted to an employee stock ownership plan, effective Jan. 1, owner Charles "Wick" Johnson said recently. The company's 65 employees were told of the deal on Dec. 22. "I conferred with our board. I did not want to sell the company [outright]. Local ownership goes away. Company after company has confronted that," Johnson told Mainebiz. Specifi c terms of the deal were not disclosed. Johnson, who bought the com- pany in 1984, has been the sole owner. That gave him the fl exibility to structure the deal in a way that gives employees additional time to fi nd outside fi nancing. "Our ESOP has a lot of moving parts," Johnson said. "I'm sole owner of the company, so I'm willing to hold [fi nancing] paper. I'll also get cash up front." Johnson said he was not eager to sell the company, but was persuaded employee ownership could be an option after watching the ESOP transition at GAC Chemical Co. in Searsport. Susan Scherbel and Bill Haskell at Bellview Associates oversaw the ESOP process. Bellview has offi ces in Chicago, New York City and Ellsworth. It handled ESOPs at Rockland-based Prock Marine Co. and Stillwater-based Sargent Corp. "We're seeing this so much with the aging baby boomers," Scherbel said. There was little activity during the recession, but now leaders are poised to sell, she added. "Wick was all set to sell, but now [Kennebec Technologies] stays in state and the company is in charge of its own destiny," Scherbel said. Johnson, 67, will remain with the company while making a transition to retirement. The company plans to recruit a general manager who can take over many of his duties. "This gives us a longer time horizon. In the next two to three years, we'll do major positioning so the company can run without me," he said. The company is well-capitalized and profi table, Johnson said, but hiring a GM will allow the company "to grow aggressively in the future." Kennebec has a long history in Maine. Ed Prendergast launched Kennebec Tool & Die from his garage in 1972. By 1978, it was manufacturing skin dies for Boeing 757s and 767s. In the early 1980s, it produced aerospace parts, including fuel cells for the space shuttle, according to the company history on its site. Johnson joined the company in 1982 and acquired it two years later. It wasn't until 1987 that the company moved from Prendergast's garage to a 10,000-square-foot plant at 150 Church Road in Augusta. It has remained at that site, thought it has since undergone two expansions, and is now in 24,000 square feet. Between 2006 and 2008, it invested $3 million in equipment and technology. The company's name was changed to Kennebec Technologies in 2009. Today, it serves a range of industries, including aerospace and defense, medical products, semiconductors, telecom and alternative energy. — P e t e r V a n A l l e n P H O T O / A M B E R WAT E R M A N Charles "Wick" Johnson said his company, Kennebec Technologies, converted to employee stock ownership, effective Jan. 1.

• Cover