Local Biz Leaders Line Up, Pony up for Romney
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20120220-NEWS--0001-NAT-CCI-CD_-- 2/17/2012 5:03 PM Page 1 ® www.crainsdetroit.com Vol. 28, No. 8 FEBRUARY 20 – 26, 2012 $2 a copy; $59 a year ©Entire contents copyright 2012 by Crain Communications Inc. All rights reserved Page 3 Local biz Health care reform: Insurance agents feel pinch leaders line Wizard of odds Brewing up growth up, pony up Bhargava bets on big returns as he with a new finally emerges from behind the curtain business plan for Romney BY DANIEL DUGGAN his various funds: Desalinating lished earlier this month. CRAIN’S DETROIT BUSINESS sea water at 80 percent less than Crain’s is his first local inter- Bulk of statewide current cost, a hydroponic agri- view. Inside Manoj Bhargava, the man be- cultural system to use vacant $1.6M raised here hind 5-Hour Energy, is a man who warehouses as farms, an addi- Potential for a global impact Energy Conversion CEO has enjoyed being anony- tive to make diesel fuel 20 BY MIKE TURNER mous. percent more efficient, and Of his new endeavors, the de- on end of the line, Page 6 SPECIAL TO CRAIN’S DETROIT BUSINESS “Some people say that a way to remove mercury salination of saltwater is the one they don’t want to toil in emissions from the coal he’s most excited about. LANSING — At least in terms of obscurity,” the 58-year- used in power plants. The technology is a machine Focus: Law monetary contributions to the old Farmington Hills Bhargava was thrust that removes salt from water at a presidential campaign of Detroit- resident told Crain’s. “I NONPROFIT into the public eye last cost of only 20 percent of reverse born Mitt Romney, the Southeast don’t mind that. I’d be May when Crain’s re- Michigan business community fine if I were to toil in STRATEGY ported he was the $100 See Bhargava, Page 24 has a lot at stake in the Feb. 28 Re- obscurity.” Charitable million investor behind publican prima- But it’s a luxury, donations local private equity ry. Bhargava says, that he’s large, but fund Stage 2 Innovations The list of not likely to enjoy much complicated, LLC. Page 25 Romney donors longer. Up to that point, few reads like a The under-the-radar realized that the owner Largest settlements and who’s who of De- billionaire says he now of 5-Hour Energy was verdicts of 2011, Page 13 troit-area busi- has a pipeline of high- local, much less that nesspeople. potential investments that are his company, Living Essentials There’s shop- likely to throw him into the lime- LLC, had sales of $1.2 billion in This Just In ping mall mag- light. 2011. nate A. Alfred “If even one works out it will Despite being identified, Romney Taubman of be outrageous,” he said. “And if Bhargava declined to be in- Blue Cross appoints Bloomfield Hills; that’s the case, I won’t be able to terviewed and continued Bolton medical director TV ADS Peter Karmanos, hide any longer.” to do so until agree- CEO of Detroit- Among the invest- ing to a Forbes in- Mary Beth Bolton, M.D., is Spending up: In based Compu- ments spread among terview pub- the newest medical director tight race, ware Corp.; “super PACs” at Blue Cross Blue Shield of and Daniel Michigan. make their mark, Page 22 Gilbert, Bolton, chairman of De- who was troit-based chief Quicken Loans Inc. — to name just a health of- few who have given the $2,500 max- ficer at imum that federal election rules al- Health Al- low individuals to make to a candi- liance Plan date for each election. Gilbert also of Michi- is one of the Michigan finance co- gan for 10 chairmen for Romney’s campaign. years end- Bolton Michigan’s turn in the primary ing in Au- cycle also has shone the national NATHAN SKID/CRAIN’S DETROIT BUSINESS gust 2010, was Blue Cross spotlight on the issues affecting vice president of medical and the region, including the 2009 fed- care management clinical eral bailouts of General Motors Co. programs from 1997 to 2000. and Chrysler Group LLC. Romney’s After leaving HAP, Bolton opposition to the bailouts is a hot A different chamber for music: Piquette Plant was a medical home review- topic, although pundits differ on er with the National Commit- whether that stance will hurt him BY SHERRI WELCH ries this year and two additional tee for Quality Assurance. in the primary. CRAIN’S DETROIT BUSINESS performances at yet-to-be-deter- Bolton, a former oncology Southeast Michigan donors ac- mined sites in the coming year. nurse, was named 2009 count for the bulk of the $1.6 mil- Come April, the sound of a horn A $68,000 grant from the Com- Woman Physician of the Year lion raised statewide by Romney once again will reverberate munity Foundation for Southeast by the Michigan State Medical through Dec. 31 — according to through Detroit’s historic Pi- Michigan to sup- Society. She also was named a records available from the Federal quette Avenue Plant. port programs Woman to Watch in 2009 by Election Commission. Nationally, The Detroit Chamber Winds & around the De- Crain’s Detroit Business. Michigan supporters have given Strings plans to break from its rou- troit Chamber — Jay Greene tine of performing at suburban Winds’ 30th an- See Romney, Page 22 churches with a new series beginning COURTESY OF WILL LAWSON The factory where Henry Ford first niversary sea- April 1 at the birthplace of Henry built Model T’s will host a concert by son will cover Ford’s Motel T. the Detroit Chamber Winds & Strings. the estimated The Piquette Plant perfor- $5,000 cost of mance will set the tone for “Struc- presentations that highlight the the first perfor- turally Sound,” a series that will significance of the space. mance, said feature Detroit Chamber Winds & In 2000, the Model T Automotive Maury Okun, Okun Strings ensembles performing at Heritage Complex Inc. acquired the executive director of the Detroit architecturally interesting build- plant with a mission to preserve it. Chamber Winds, the Great Lakes NEWSPAPER ings, with music programmed es- The Detroit Chamber Winds pecially for the site and spoken plans one concert as part of the se- See Music, Page 25 20120220-NEWS--0002-NAT-CCI-CD_-- 2/17/2012 3:15 PM Page 1 Page 2 CRAIN’S DETROIT BUSINESS February 20, 2012 MICHIGAN BRIEFS Snyder, Schuette oppose Lansing First LEED-certified brewery casino; supporters push ahead Kellogg adds Pringles crunch to snap, crackle, pop If you read last week’s Crain’s Michigan Business story about Two people who probably won’t Perhaps Kellogg Co. executives sensed the limited Kellogg was able to buy Pringles after Diamond “smart” meters (“To watt end?” be attending public forums on a pro- appeal of beer and Frosted Flakes or an oaky Foods Inc.’s proposed $1.5 billion acquisition fell Page 8), you know that Brewery Vi- posed casino in Lansing are Gov. Chardonnay washing down a fistful of Fruit Loops. through. Diamond replaced its CEO and CFO after vant in Grand Rapids takes energy Rick Snyder and Attorney General (White zinfandel, perhaps?) What is certain is that the company’s board found payments to walnut Bill Schuette. efficiency seriously. breakfast isn’t quite as important a meal at the Bat- growers had been booked in the wrong periods. So much so that it has been In a letter last week, they said tle Creek-based cereal maker. The transaction will reduce Kellogg’s earnings the plan is “inconsistent with granted LEED Silver certification. Last Wednesday, Kellogg scooped up the Pringles this year by up to 16 cents a share, the company state and federal law.” The Sault Owners Jason and Kris Spauld- line of potato snacks for $2.7 billion from Procter & said. Kellogg said that debt is likely to increase by Ste. Marie Tribe of Chippewa Indians ing say theirs is the first commer- Gamble. The deal makes Kellogg the world’s second- about $2 billion and that it will limit stock buybacks responded by saying that’s not go- cial brewery in the U.S. to achieve biggest maker of so-called savory snacks behind for about two years to reduce that debt. ing to stop the $245 million pro- the LEED designation. Frito-Lay. Pringles now joins an assault of Kellogg Pringles is sold in more than 140 countries and ject, which would include a LEED’s leaders, the U.S. Green salted snacks that includes Cheez-Its and Keebler gets two-thirds of its $1.5 billion in annual revenue 125,000-square-foot casino next to Building Council, told The Grand Townhouse and Club crackers. from overseas. the Lansing Center and two park- Rapids Press that it could only at- ing decks. test that Brewery Vivant is the Snyder and Schuette write that first commercial brewery in they will “take whatever steps are Muskegon and an office in Grand CEO Gary Black, who joined Next biggest distributor, with a net- Michigan to become so certified. necessary to prevent the opening Rapids, has purchased a company I.T. after the acquisition. work of more than 300,000 sales- of the proposed casino, and if the in the border town of Sturgis to ex- — Matthew Gryczan people across China, The Journal Tribe persists in these efforts, it pand into a wider area that includes reported. That’s one in every 10 Find business news from does so at its own risk.” Indiana as well as Michigan.