Kerr Group changes management after buy-out

After a nearly $100 million buy-out, Lancaster-based Kerr Group Inc. has reshuffled its top brass.

Richard Hofmann has replaced D. Gordon Strickland as president and CEO. Lawrence Caldwell has replaced Geoffrey Whynot as vice president and CFO.

Prior to taking the helm at Kerr, Hofmann and Caldwell were with New Canaan Investments Inc. of New Canaan, Conn., Hofmann said.

Strickland and Whynot both left the company. And former senior vice president of sales, Robert S. Reeves, retired after the buy-out, according to Hofmann.

New Canaan Investments is associated with Fremont Partners of San Francisco, which purchased the ailing Kerr group in July for almost $100 million, according to Hofmann.

"After all the changes which took place, things are starting to settle down here," said Hofmann, adding the company has "no specific plans for further changes."

Kerr's private investors have bought back 93 percent of its stock. They hope to turn the once publicly held company into a private one by the end of the year, Hofmann said.

"We're planning to acquire a few other businesses," he added. Kerr, a manufacturer of plastic bottles and lids, is looking at similar companies "around the world and in the East (Coast).

"We think we have a great company here," Hofmann said. "The company was having some financial difficulties, but we think we've ken care of them."

Prior to the buy-out, Ken. had been in the red for almost two years, struggling with a debt burden equal to almost half its annual revenues.

Last year, the company suspended its dividend after losing $12.8 million during the first quarter--$4 million from its normal operations and another $7.5 million in restructuring costs.

It then sold off its home-canning-supply operations. laid off some top brass, closed a California plant and moved its headquarters from California to Lancaster.

After the shuffle, Kerr was $50.9 million in debt. In September 19961 a group of undisclosed investors proposed to purchase the debt with aspirations of acquiring the company in a debt-for-stock swap. But negotiations for the swap broke down earlier this year.

At the time of the buy-out, former president Strickland said the company's board had been debating over "two different paths for the company"--whether to refinance or sell the company.

Hofmann said Fremont has refinanced the debt.

In 1996, Kerr lost $23.1 million of $107 million in revenues.

The company has a total of 900 employees and five manufacturing facilities in Ahoskie, N.C.; Bowling Green, Ky.; two in Jackson. Tenn.; and one in Lancaster with 290 employees.