First Posted: 12/22/2010 5:31:01 AM | Last Updated: 12/22/2010 1:33:18 PM
LAFAYETTE -- Lafayette-headquartered Andover Coils, 310 N. Earl Ave., which makes ignition coils, is growing its production capabilities and employment.
Andover Coils’ parent company, Carmel, Ind.-based The Accession Group LLC, last week invested $1.25 million to purchase the assets of a Morrison, Ill., competitor. That company’s equipment and business is being moved to the 48,000-square-foot Lafayette facility.
Within the next 90 days, Andover Coils plans to hire 25 new employees in Lafayette and then another 28 over the next four years, ultimately more than doubling today’s workforce of 35.
The announcement was made at a news conference at the Lafayette facility on Tuesday, Dec. 21, by Michael Coyle, co-owner with Kurt Walterhouse of The Accession Group, which purchased Andover Coils in 2007. Both co-owners are engineers, active in the day-to-day business. Coyle oversees administrative and financial processes; Walterhouse handles marketing and production operations.
The company obtained acquisition financing from Lafayette Community Bank. The bank and the Indiana Community Business Credit Corp. also provided a working capital loan to Andover Coils.
Through its government-funded training assistance program, Greater Lafayette Commerce is providing a training grant of up to $62,800 from the city of Lafayette to help cover skills training for Andover Coils employees. Training will include use of the equipment new to Lafayette, lean manufacturing concepts and ISO9000 quality standards.
“Some of this equipment is quite specialized,” Coyle said. “The new winders, for example, are used to wind wire that is thinner than human hair. That’s a really specialized skill that requires focused training.”
The new employees will be joining a top-notch workforce, Coyle said. “Our people are the cream of the crop, the best people. We’ve got a good workforce.”
Lafayette Mayor Tony Roswarski was especially glad the news included hiring new employees.
“Andover Coils certainly knows how to celebrate its 65th anniversary of operations in 2011,” Roswarski said. “It’s hiring 25 new employees in the next 90 days and another 27 over the next four years, more than doubling today’s workforce. Don’t those words sound great? Doubling today’s workforce.”
Continuing operations in Lafayette is also a feather in the city’s cap. “This is a hometown company, founded here in Lafayette in 1946 and operating continuously here in Lafayette since 1946,” Roswarski noted. “When the company was acquired in 2007 by two partners, Kurt Walterhouse and Mike Coyle, they kept the company here. And with their recent acquisition, they are not only continuing to operate Andover Coils here, they are expanding its operations. And, let me say it one more time because it sounds so great, they are more than doubling the company’s workforce. This is welcome news.”
John Knochel, president of the Tippecanoe County Commissioners, also attended the news conference.
“As it expands its operations, Andover Coils is bringing some highly sophisticated equipment into its plant and giving its employees an opportunity to expand their skills,” Knochel said. “That’s an endorsement of its Lafayette workforce and a vote of confidence in Andover Coils employees.
“Expanded employment “is every county’s dream,” Knochel said. “With the added production equipment and the growth in its workforce, Andover Coils is making an investment here that we hope will be well rewarded.”
Lafayette Community Bank President and Chief Executive Officer Bradley Marley said, “After the government incentives and acquisition financing were arranged, the working capital loan from the Credit Corp. put the final bricks in place to structure the deal.”
Jean Wojtowicz, executive director of the Credit Corp., said, “Andover Coils is a traditional manufacturer that evolves by developing new products and penetrating new markets. It thinks about the future: that’s a company the Credit Corp.’s pool of capital is designed to help.”
About Andover coils
Founded in Lafayette, Ind., in 1946, Andover Coils is one of the industry’s principal producers of ignition coils for high-performance automotive, large-industrial, motorcycle and aircraft engines. Andover also makes magnetic contactor coils and medical x-ray transformers. The company prides itself on producing coils that withstand the harshest environments and deliver superior reliability. Andover is the only U.S. producer of many of its coils. It serves customers all over the world, including many who prefer made-in-America products designed for high performance and demanding environments.
About The Accession Group
The parent company of Andover Coils, The Accession Group is a Carmel, Ind.-based investment company focusing on making strategic investments in niche manufacturing, service and distribution companies in Indiana and throughout the Midwest.
About the Indiana Community Business Credit Corp.
The Credit Corp. is a privately owned company that manages a pool of risk capital provided by Indiana banks (currently 34). One of the 34 banks must be a primary lender with at least a 50-percent exposure. The Credit Corp. participates in projects that need at least $200,000 in new financing.