Management buyout at Stopol would reorganize business

(Solon, OH) intend to purchase the company’s four operating business divisions and run them as independent units. Stopol employees Donald Kruschke, John Muzyczka, and Scott Mihalic have agreed in principle to purchase the Thermoforming, Extrusion, Injection Molding, and Auctions businesses, and contingent on the deal’s closing, all four units will continue to market and sell used plastics processing equipment and offer liquidation, auction, and appraisal services. Under the deal’s current terms, Kruschke would oversee the Thermoforming and Extrusion units and be joined by Stopol veterans Bud Hoffmann and Todd Harrell. Muzyczka would run the Injection Molding business, with Mihalic heading up Auction services.

Bryan Kokish, Stopol marketing director, told MPW the deal is expected to close at the end of June, pending standard due diligence. Each new owner will be free to name the distinct companies as he sees fit, but Kokish says the brand equity built into the Stopol name will likely impact any new name. Kokish believes nearly all employees will be retained in some capacity within the different units.

Stopol CEO Neil E. Kruschke Jr., Donald Kruschke’s brother, is divesting the company to focus on his real estate and other business interests. The proposed new owners say this deal will not interrupt current business, and they believe the new decentralized structure will improve responsiveness and reduce operating expenses, with savings passed on to customers. Kokish told MPW that Kruschke Jr. will have no ownership in the remaining businesses, but will offer guidance as requested. After traveling 50% of the time or more the last few years, Kokish said the former CEO is interested in spending more time with his family.

Founded in 1990 by the Kruschke brothers and their father, Neil Sr., Stopol runs three lines of business: Equipment Sales, Auctions & Liquidations, and Business Services, which include merger and acquisition consulting, appraisal services, and financing. In 2004, the company launched Stopol Auctions LLC, an online auction portal that allows traders in disparate locations to buy and sell new and used equipment and other assets remotely. Kokish said recent economic turmoil has equated to a “substantial increase” in its business as companies have liquidated or wound down operations over the last 12-18 months.

On the company’s website, Stopol reports generating more that $50 million in annual sales, with a 15,000-ft² headquarters in Solon, OH and approximately nine U.S. warehouses. Stopol did have international offices in London and Shanghai, hoping to exploit business in the Pacific Rim in particular, but it has since closed the sites. —[email protected]