Stores Make Call on Selling Synthetic
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20120611-NEWS--0001-NAT-CCI-CD_-- 6/8/2012 5:53 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 24 JUNE 11 – 17, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Battery maker A123 has growth plan – and doubters Compuware CRAIN’S MICHIGAN BUSINESS Chicago design show readies IPO inspires West Michigan, Page 8 for Covisint GLENN TRIEST World Watch: Karam Bahnam makes sure his gas station customers in Novi know he decided not to sell products like K2 and Spice. Spotlight on Paul: Hot market is trigger Michigan biz in Taiwan, Page 12 BY TOM HENDERSON crazy. It’s a hot market for cloud- Stores make call on CRAIN’S DETROIT BUSINESS based IPOs, and Covisint was in the cloud before the cloud was Crain’s Lists Compuware Corp. has engaged ever a term,” said Compuware an underwriter for an initial pub- CEO Bob Paul. Covisint provides Largest Michigan banks, lic offering of its Covisint LLC busi- secure, Web- ness unit, marking the first based ex- Page 14 selling synthetic pot Southeast Michigan tech compa- change of data ny IPO planned since 1996. for large com- Largest auto dealers, The computer services compa- panies, health Some saw profits, others red flags ny hopes to raise $200 million by care organiza- Page 20 taking Covisint public by the end tions and units BY SHERRI WELCH could sell for $5 to $50. of the current fiscal year, which of government. CRAIN’S DETROIT BUSINESS But once he did some research ends March 31, and selling 20 per- “It’s really This Just In and talked with his store managers cent of its shares to the public. exciting for me Two years ago, Karam Bahnam and primary wholesaler, The H.T. While all the media attention to be able to do Mahle Industries to expand began to get a surge of customer Hackney Co. in Knoxville, Tenn., he for months has been on Face- Paul a tech IPO out requests at his four metro Detroit decided not to sell it. book’s ultimately disappointing of Detroit,” Paul said. “It’s great after deal for adjoining site gas stations for an “incense” called “The fact that national whole- IPO in May, other recent tech for the region. I can’t even think K2 or Spice. Germany-based Mahle In- IPOs have been far more success- of the last tech IPO here.” Seeing the potential for new See Synthetic pot, Page 22 dustries Inc. will expand its ful, particularly those in Web- An IPO by Covisint would be sales, Bahnam — whose gas station Farmington Hills research based or so-called cloud comput- the first by a tech company in minimarts in Commerce Township, and development center, fol- ing, which is Covisint’s forte. Southeast Michigan since Aug. Novi, New Hudson and Howell do lowing the purchase of the Those high-flying IPOs (See sto- 12, 1997, when Troy-based Syntel business as Gas 2 Go — began former Nailco Group Inc. oper- ry, Page 24) helped convince the Inc. went public, and the second checking into the product. ation next door. management at Compuware since Plymouth-based Rofin-Sinar At first, he was enticed by The acquisition of the site, (Nasdaq: CPWR) that the time is Technologies Inc. went public on the 400 percent to 500 percent at 23200 Haggerty Road, adds right to revive a spinoff of fast- Sept. 26, 1996, said David Sower- profit margin promised by dis- 50,000 square feet of office growing Covisint. tributors, who said the products See Covisint, Page 25 space to Mahle’s North NATHAN SKID/CDB “The IPO market has been American location, as well as additional warehouse space. Mahle will move its opera- tions in Novi to the Farming- ton Hills location. By 2013, Rock Ventures, employees raise $1.2M for riverfront the company expects to have more than 350 employees on BY NANCY KAFFER “It clearly exceeded our expectations,” said velopmental and operational efforts. the fully occupied campus, a CRAIN’S DETROIT BUSINESS Cullen, who also is chair of “We did everything from having groups press release said. the conservancy’s board of come together to buy bricks and benches to auc- The company will invest A combined fundraising effort by Rock Ven- directors. tioning parking spaces, all kinds of creative $11 million in the move. tures LLC and its employees has resulted in a Donors bought bricks and things to get people engaged financially,” Mahle’s products include en- $1.2 million gift to the Detroit Riverfront Conser- benches that will be etched Cullen said. “But at the event itself, we expect gine components such as pis- vancy, Rock Ventures COO Matt Cullen told with their names and placed to have thousands of our folks down there to ton systems and cylinder Crain’s last week. along the riverfront. The connect to the riverfront. components. Rock Ventures — an umbrella organization etching will be complete by “It’s great to support things financially, but Mahle Industries is a sub- for companies owned by Dan Gilbert, including June 21, when the company the thing I think distinguishes it a lot is to con- sidiary of the Stuttgart, Ger- Quicken Loans Inc. — made a corporate gift of $1 will hold a pre-Detroit River nect people.” many-based Mahle Group. million. Employees of the companies donated Days event to celebrate the The event will be attended by employees and Cullen — Ryan Kelly $100,000 in about three weeks, an amount that fundraising effort. The mon- Rock matched, Cullen said. ey will be used as part of the conservancy’s de- See Riverfront, Page 22 “A non-MBA KEYNOTE SPEAKER Manoj Bhargava June 26 approach to DETROIT GOLF CLUB CEO of Living Essentials LLC To register, please visit growing a The creator of www.crainsdetroit.com/events business” Five-Hour Energy or call 313.446.0300 NEWSPAPER 20120611-NEWS--0001-NAT-CCI-CD_-- 6/8/2012 5:59 PM Page 1 CRAIN’S MICHIGAN BUSINESS A special edition of ® Cwww.crainsdetroit.comRAIN Vol. 28, No. 24 ’SDETROITJUNE 2012 BUSINESS$2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Inside Michigan Chicago design Compuware show inspires West Michigan, Page 8 readies IPO Averting layoffs: Bills would help firms keep employees, Page 11 for Covisint GLENN TRIEST World Watch: Karam Bahnam makes sure his gas station customers in Novi know he decided not to sell products like K2 and Spice. Spotlight on Paul: Hot market is trigger Michigan biz in Taiwan, Page 12 BY TOM HENDERSON crazy. It’s a hot market for cloud- Stores make call on CRAIN’S DETROIT BUSINESS based IPOs, and Covisint was in the cloud before the cloud was Crain’s Lists Compuware Corp. has engaged ever a term,” said Compuware an underwriter for an initial pub- CEO Bob Paul. Covisint provides Largest Michigan banks, lic offering of its Covisint LLC busi- secure, Web- ness unit, marking the first based ex- Page 14 selling synthetic pot Southeast Michigan tech compa- change of data ny IPO planned since 1996. for large com- Largest auto dealers, The computer services compa- panies, health Some saw profits, others red flags ny hopes to raise $200 million by care organiza- Page 20 taking Covisint public by the end tions and units BY SHERRI WELCH could sell for $5 to $50. of the current fiscal year, which of government. CRAIN’S DETROIT BUSINESS But once he did some research ends March 31, and selling 20 per- “It’s really This Just In and talked with his store managers cent of its shares to the public. exciting for me Two years ago, Karam Bahnam and primary wholesaler, The H.T. While all the media attention to be able to do Mahle Industries to expand began to get a surge of customer Hackney Co. in Knoxville, Tenn., he for months has been on Face- Paul a tech IPO out requests at his four metro Detroit decided not to sell it. book’s ultimately disappointing of Detroit,” Paul said. “It’s great after deal for adjoining site gas stations for an “incense” called “The fact that national whole- IPO in May, other recent tech for the region. I can’t even think K2 or Spice. Germany-based Mahle In- IPOs have been far more success- of the last tech IPO here.” Seeing the potential for new See Synthetic pot, Page 22 dustries Inc. will expand its ful, particularly those in Web- An IPO by Covisint would be sales, Bahnam — whose gas station Farmington Hills research based or so-called cloud comput- the first by a tech company in minimarts in Commerce Township, and development center, fol- ing, which is Covisint’s forte. Southeast Michigan since Aug. Novi, New Hudson and Howell do lowing the purchase of the Those high-flying IPOs (See sto- 12, 1997, when Troy-based Syntel business as Gas 2 Go — began former Nailco Group Inc. oper- ry, Page 24) helped convince the Inc. went public, and the second checking into the product. ation next door. management at Compuware since Plymouth-based Rofin-Sinar At first, he was enticed by The acquisition of the site, (Nasdaq: CPWR) that the time is Technologies Inc. went public on the 400 percent to 500 percent at 23200 Haggerty Road, adds right to revive a spinoff of fast- Sept. 26, 1996, said David Sower- profit margin promised by dis- 50,000 square feet of office growing Covisint. tributors, who said the products See Covisint, Page 25 space to Mahle’s North NATHAN SKID/CDB “The IPO market has been American location, as well as additional warehouse space.