Buffalo News: Buyers of Buffalo factory get $2 million loan
Friday March 27, 2015
The Buffalo News.com
Buyers of a Buffalo factory get $2 million loan from ECIDA affiliate
Deal aims at keeping Northland Ave. plant, 124 jobs, in Buffalo
BY: David Robinson Published: March 25, 2015, 11:33 AMUpdated: March 25, 2015, 06:33 PM
Keeping a longtime factory rooted in Buffalo is the goal of a $2 million loan awarded by an affiliate of the Erie County Industrial Development Agency.
An acquisition group led by a pair of top executives at TMP Technologies is getting the loan to help finance their purchase and keep the company's 124 jobs in Buffalo.
TMP Acquisitions, led by company President Robert Laughlin and Vice President Kirk Dorn, are trying to buy TMP from current owner Jeff Dorn in a deal valued at $27.5 million. The deal would preserve the company's local jobs and maintain its operations at its factory at 1200 Northland Ave.
TMP, which makes the Mr. Clean Magic Eraser for Procter & Gamble and other products requiring applicators sold under other brand names, has roots in Buffalo that date back to 1954. But with current owner Jeff Dorn looking to sell the company, TMP has drawn interest from several of its main competitors, including Inoac Corp., Rogers Foam, UFP Technologies and FoamEx Inc., prompting fears that an acquisition by one of those companies could lead to a shutdown of its Buffalo operations.
The IDA, through its Regional Development Corp. affiliate, agreed Wednesday to provide a $2 million, five-year loan to help with the financing of the local acquisition group's bid.
"This is the kind of company we could use more of in Buffalo," said Dottie Gallagher-Cohen, the president of the Buffalo Niagara Partnership and an RDC board member. "I'm just thrilled there's a path to keep them here."
The $2 million loan, which will carry a 4 percent interest rate, will be one of the largest ever made by the RDC.
"It is a very large loan for us," said board member Michael Hoffert. "We usually don't do loans of this size."