SEYMOUR, Ind. -- Robert R. Myers, chairman and CEO of Kocolene Development Corp., and Andy Royalty, president of roofing firm Royalty Cos. Inc., have announced the intent to merge, forming a new holding company, Crown Investments LLC, reported the Seymour Daily Tribune.
Kocolene Development is the parent company of Kocolene Marketing LLC, which operates approximately 35 Kocolene- and Sunoco-branded gas stations and Fast Max convenience stores in Indiana, Kentucky and Ohio, as well as 13 Smokers Host Discount Tobacco stores.
We bring a lot of what Andy needs to the table right now, Myers told the newspaper. Andy is a true entrepreneur and is at a point where he needs some strong management talent and capital to help grow his company. At the same time, Kocolene is interested in transitioning out of the convenience store and gasoline business. We think the synergies will be very good.
Divesting from the c-store and gasoline business means selling off many of its stores and stations, said the report. Only the most profitable are expected to remain part of Kocolene Development Corp., and those for perhaps just three or four years, Myers said. They would be kept to provide cash flow to finance expansion of the Royalty subsidiaries. He did not indicate which stores might be retained.
Commercial roofing would be a primary target for Crown Investments, much as it is a key component of Royalty Roofing, the report said. Royalty is now limited to within a 100-mile radius, Myers said. We want to expand that business to a much wider area. We want to get into the entire Midwest.
In a news release cited by the Daily Tribune, Royalty said he is excited about the merger and possibilities it brings for his company. We feel that our roofing business can be a model capable of being expanded into other states. Kocolene's plan to diversify their investments and operations is going to accelerate the growth of our core roofing, glass, construction and real estate development businesses. We are very excited about the combined synergy of our two companies.
Another venture could see Royalty developing properties that Kocolene now owns. As an example, it could develop retail strip malls on properties owned by Kocolene. Andy has looked at those properties and has made some determinationsthat several of them would make a good little strip center, Myers said.
The genesis of the merger is traced to a conversation that Andy Royalty had with Myers' brother, Gary Myers, president of Kocolene Development Corp. Andy indicated a tremendous frustration he was having with his company, Robert Myers said. That frustration centered on being overworked to the extent of infringing on time with his family. The talks went from there. Andy is following the path of true entrepreneurs, where they have grown and developed their companies to a point where they need help operating the business. Some entrepreneurs aren't managers. They're entrepreneurs and creative people. Andy was smart enough to see that and to seek help.
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