Pallet Holdings opens in former Millwood facility

Toledo Business Journal, Jan 01, 2004

Pallet Holdings was formed in August 2003 when three investment banking professionals in Boca Raton, Florida bought the assets of Pallet Management Systems out of bankruptcy. Pallet Holdings' primary client contacted them shortly thereafter about a facility that was not being utilized in Fremont, Ohio.

Millwood, Inc., a pallet refurbishing company, had been operating in a 260,000 square foot building in Fremont that was being leased by Pallet Holdings' client. Since Millwood closed in early 2003, the facility and its equipment, still under lease by the client, was not in use. A partnership was formed between the two companies to start operations at the facility.

Operations are now ramping up in Fremont. As we go to press, the facility expects to have 40 to 50 employees operating two shifts by January. Pallet Holdings has been working closely with Kay Hofacker at The Job Store in Fremont to find employees.

"The Job Store has been a real benefit in screening potential employees and putting the word out that we're hiring," stated Eric Thomes, chief operating officer and a partner in Pallet Holdings. "They made it very easy for us. They had interviews lined up, facilities for us to interview in, and everything else. I can't say enough good things about what they did for us.

The Fremont facility will be the only Pallet Holdings facility dedicated solely to pallet repair. The company's Plainfield, Indiana facility does some repair work as well as manufacturing new pallets. Pallet Holdings' Lawrenceville, Virginia plant focuses on new pallets only.

Although Pallet Holdings has formed a partnership with its primary client for the Fremont facility, the other two locations are owned completely by Pallet Holdings, but the company has an agreement with the client involving production at all three facilities.

The three Pallet Holdings facilities serve customers from New Hampshire to North Carolina. The company's pallets are used by such companies as Kraft, Procter & Gamble, and Tropicana to ship goods to Big Box-type stores.

Much of the machinery and equipment from the former Millwood operation is still at the facility. Pallet Holdings is investing in upgrading the facility - updating the existing equipment as well as adding some. "We've put a considerable amount of money into it to get it up and operational," stated Thomes.

The Fremont facility may see another change in the future. "We are entertaining the possibility of Putting some new pallet manufacturing into Fremont," stated Thomes.

Pallet Holdings was formed by Lloyd Beirne, David Davidson, and Eric Thomes. The company's corporate office is in Boca Raton, Florida. After Pallet Management Systems filed bankruptcy, Mark Steinberg was promoted from CFO and vice president to president of the company. When it was acquired, Steinberg was kept on as president. Jim Embry was hired from Pallet Holdings' client company to ensure a smooth transition, according to Thomes.

Thomes explained the company's plans for the future: "We're looking to expand our operations and acquire other facilities." This will focus on expanding the company's geographic coverage and will probably not involve expanding the three current facilities.

Once Pallet Holdings adds all of the jobs in Fremont, the company will have between 100 and 120 employees at its 3 facilities.