Hartford Business Journal

6 Hartford Business Journal • March 7, 2016 www.HartfordBusiness.com TOP STORY Miami private equity firm buys Stag Arms Just months after its founding CEO accepted an industry ownership ban after pleading guilty to federal firearms' violations, New Britain gun maker Stag Arms LLC has been sold to a Miami-based private equity firm. White Wolf Capital LLC has acquired Stag Arms for an undisclosed price. As part of the deal, Stag Arms will continue to operate out of its current New Britain facility, under a new fed- eral firearms license. In December, Stag Arms, through its Founder and President Mark Malkowski, pleaded guilty in Hartford federal court to felony possession of a machine gun not registered to the company and agreed to no longer hold a federal firearms license. Malkowski also pleaded guilty to a misde- meanor charge for failing to maintain proper firearms records. Stag lost its license to make and sell firearms and had to be sold following a federal investigation, which found Stag Arms in possession of 62 machine guns and machine-gun receivers that were registered with another entity, or not registered at all, which is a violation of federal law. MANUFACTURING Honeywell drops pursuit of UTC New Jersey aerospace manufacturer Honeywell said last week it's no longer pursuing an acquisition of United Technologies Corp., even though it still thinks a deal would be good for shareholders. Honeywell is dropping the merger, it said, because Farmington-based UTC is no longer willing to engage in negotiations. UTC said it was an appropriate outcome given the strong regulatory ob- stacles, negative customer reaction and the potential for a protracted review process that would have destroyed shareholder value. Honeywell said in a statement it was interested in a combination with UTC because it saw compelling value creation for both sets of shareholders and a readily executable deal due to two largely complementary business portfolios. Stanadyne buys out India partner Windsor fuel-injection systems maker Stanadyne LLC has acquired full inter- est in its joint-venture churning out diesel-fuel systems in India. Financial terms weren't disclosed last week for Stanadyne's pre-arranged buyout of The Amalgamations Group in their 15-year-old joint venture. The joint venture produced a wide range of diesel-injection pumps and in- jectors at their Chennai, India, facility and serves customers in the Near East region, officials said. Stanadyne's recently announced EcoForce diesel fuel pump, a new com- pact fuel pump designed for engines below 50 horsepower, will be produced in Chennai, officials said. ENERGY & UTILITIES Mild Jan. weather drove down wholesale electricity costs Warmer January temperatures drove down the wholesale cost of electricity nearly 50 percent, according to grid operator ISO New England. A megawatt hour of electricity cost $33.99 in January, down from $65.59 in Jan. 2015, ISO-NE said. The lower electricity costs were linked to natural gas prices, which were down by a nearly identical margin over the year, to $4.73 per one million British thermal units. Demand for electricity — and the natural gas that produces nearly half of it in the region — was lower because of relatively warmer temperatures. January averaged 29.7 degrees, up from 16.7 degrees a year earlier. HEALTH CARE Aetna CEO says he supports Obamacare amid losses The head of Hartford insurer Aetna said last week he supports Obamacare insurance exchanges, even though he recently questioned their sustainability. Aetna CEO Mark Bertolini said Health and Human Services Secretary Sylvia Burwell called him shortly after he made critical remarks during an earnings conference call on Feb. 1. The nation's third largest insurer announced it had lost money on the exchanges last year. Before then, Aetna had struck a more upbeat tone compared to some rival insurers. Bertolini said he intends to continue working with the Obama administration and state officials but wants them to address some of the problems that are ham- pering enrollment under the Affordable Care Act, particularly among young people. Government officials, he said, should allow more flexibility in rates and benefit design to attract younger and healthier consumers. Those enrollees are crucial to offset the higher medical costs of insuring older, chronically ill patients. ADVERTISING, MEDIA & MARKETING Hartford Courant abruptly names new publisher As part of a companywide shakeup, Tribune Publishing abruptly replaced the publisher of The Hartford Courant after just two months on the job. Andrew Julien has been promoted to editor-in-chief and publisher. Gone is Tom Wiley who had just been named publisher Jan. 5. Previously, Wiley was executive vice president of sales at Digital First Media, which owns three Connecticut newspapers. Tribune replaced publishers at all nine of its newspapers and combined them into the editor positions. A 25-year veteran of the Courant, Julien has overseen an expansion and diversification of the newsroom's operations over the last four years as editor and vice president. ECONOMY & LABOR CT's GDP growth lags slightly behind region, nation Connecticut's gross domestic product grew 1.6 percent in the third quarter of 2015, according to a report by the federal Bureau of Economic Analysis. That growth places the state 35th in the United States. Connecticut's growth was slightly eclipsed by a national GDP increase of 1.9 percent. Connecticut's GDP for the third quarter was approximately $262.2 billion, up from $253.2 billion in the third quarter of 2014. The strongest growth for Connecticut on a percentage basis came from the retail trade sector at 0.37 percent. Construction also saw growth at 0.24 per- cent. Wholesale trade fell by 0.34 percent. New England as a region saw growth of 2 percent. Connecticut was last among the six states, just behind New Hampshire, which was ranked 34th. CT 9th worst state for retirement A new report by Bankrate.com says Connecticut is the ninth-worst state for retirement. Its main negatives are the nation's second-highest tax burden and a high cost of living. The study examined six key factors: cost of living, taxes, health care, weather, crime and residents' overall well-being. Connecticut residents fared well in the overall well-being category (ranking 20th nationwide), but that was offset by the state's high income and property tax rates, both being second highest in the country. HUMAN RESOURCES Study shows bias against disabled in the workplace New research says a large share of Americans don't believe the disabled can be as productive in the workplace as employees without physical limitations. The study, conducted by The Hartford Financial Services Group, found 76 per- cent of Americans said they would find a way to be productive after a physical disability, even if it meant training and taking a new job. And 45 percent strongly agree disabled employees are as productive as workers without disabilities. However, only 26 percent felt strongly that people with physical disabilities could perform most jobs done by individuals without disabilities. "Advances in technology and medicine, along with cultural changes, are helping to redefine what it means to be disabled, but this new research shows misconceptions linger," said Mike Concannon, executive vice president of The Hartford's Group Benefits business. The conflicting opinions found in the survey, The Hartford said, may stem from the range of definitions respondents assign to the term "disability." BY THE NUMBERS $33.99 New England's average megawatt hour wholesale cost of electricity in January, down from $65.59 in Jan. 2015, thanks to this winter's warm weather. 72B The number of toy blocks sold in 2015 by Lego, which has its U.S. headquarters in Enfield. $219.9M The state's projected deficit for its current fiscal year, according to the Comptroller's office, which is in line with recent budget predictions from the Office of Fiscal Analysis. $11K The amount UConn spent on a full- page promotional ad in the Dallas Morning News ahead of the men's basketball teams' game last week against Texas-based Southern Methodist University. TOP 5 MOST READ on HartfordBusiness.com ■ CT 9th worst state for retirement ■ Miami private equity firm buys Stag Arms ■ Quest Diagnostics acquires Clinical Laboratory Partners ■ UConn names new athletic director ■ Hartford Courant abruptly names new publisher STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Mark Malkowski, Founder and President, Stag Arms Stag Arms will continue making guns in New Britain after its recent sale. P H O T O | C O N T R I B U T E D

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