To the surprise of many, three successful, family-owned local manufacturing and machining companies merged into Hatboro-based KMM Group last year when their two owners decided to devise a plan on how to phase into retirement, writes Brent Donaldson for the Modern Machine Shop.
Hatboro-based M&S Centerless Grinding and Meron Medical were led by John Shegda, while Huntingdon Valley-based KVI Group was led by Eric Wilhelm.
When they decided to devise their exit strategy, both men considered their options, including a mix of seeking equity groups, selling the companies, or transitioning into an employee stock ownership plan.
However a suggestion from a mutual friend made them choose a different path.
“It was actually a part-time business development guy who said, ‘You guys ought to just merge your companies,’” said Shegda. “And Eric and I kind of looked at each other like, ‘Huh. You know that’s not a bad idea!’”
This idea was also supported by the fact that the current owners’ fathers were colleagues in their businesses. This combination of factors made for a smooth merger process.
“It was almost like two jigsaw puzzle pieces coming together,” said Shegda.
Read more about the KMM Group at the Modern Machine Shop by clicking here.
