Advanced Technical Products Inc. named ATP director Alan Baldwin as president of its troubled Alcore Inc. subsidiary, and appears back on track to sell ATP to two affiliates of Veritas Capital Fund LP. Roswell, Ga.-based ATP terminated two top Alcore officers March 1. The company had suspended Alcore President Edward A. Kiley and Chief Financial Officer Richard N. Orzechowski in January following disclosure of a federal criminal investigation into allegations of financial record falsification and mail fraud.
Federal agents served a search warrant Jan. 7 at Alcore of Edgewood, Md., which makes structural honeycomb core for aerospace and aircraft applications.
Baldwin had headed Lunn Industries Inc. of Glen Cove, N.Y. He was Lunn's chairman and chief executive officer until October 1997, when ATP bought Lunn and Baldwin became an ATP board member.
Alcore operations include a headquarters plant in Edgewood; a plant in Belcamp, Md.; and a unit in Anglet, France.
ATP said March 3 that it expects to make a material adjustment to its operating results for the nine months ended Oct. 1, based on an ongoing independent audit of Alcore records. The adjustment could eliminate reported profit of $4.9 million on sales of $137.3 million for the period.
Veritas of New York agreed Sept. 3 to buy ATP for $14.50 per share. In the wake of the Alcore disclosures, the deal was revised Jan. 28 to $12.75 per share, contingent on audited 1999 financial statements, Veritas' ability to arrange financing and ATP shareholder approval. About 5.3 million shares are outstanding.
Separately, ATP's board adopted a plan to avoid a hostile takeover. The plan is triggered if a person or group acquires at least 15 percent of ATP common stock without approval of ATP's board.