Kaiser Brothers Sell 70 Percent of Stock in Kaiser Electric Inc.

For more than 50 years, Kaiser Electric Inc. has been a family-owned and run business. But on January 1, the company's three owners, brothers Robert, James and John Kaiser, sold 70 percent of their stock in the company to five long-time and trusted Kaiser employees.

Robert B. Kaiser founded Kaiser Electric Inc. in 1952 and passed ownership of the company to his sons when he retired in 1988.

"Since the three Kaiser brothers are each beginning to reach retirement age, and there are no second generation Kaisers to take over the company, we thought it was a good time to address succession in the company," said Robert Kaiser, 65. "This stock deal was also important because it allowed us to keep the good employees that we had, while providing them with a tremendous incentive."

Executive Vice President of Operations Steve Giacin, 45, holds the majority of the stock in Kaiser Electric at 30 percent. Four employee shareholders, and the three Kaiser brothers, now each own 10 percent of the company's stock:

• Jerry Dorhauer, 43, senior estimator, has been with Kaiser Electric for six years.
• Mike Lundry, 40, CFO (CPA), has been with Kaiser Electric for eight years.
• Mike Murphy, 44, vice-president/project manager, has been with Kaiser Electric for seven years.
• Ken Naumann, 43, vice-president/project manager (PE, RCDD), has been with Kaiser Electric for eight years.

"The Kaiser family has owned this company for a long time and we have enormous shoes to fill as new owners," Giacin said. "We are very aware of the responsibility that comes with maintaining the well-respected image that Kaiser Electric has achieved in this community."

Giacin, who has worked for Kaiser Electric for 10 years, will succeed George Azzanni as president of the company in January 2009. Azzanni, 59, has been with Kaiser Electric for eight years, with more than five years served in the president's seat.

"I have served in almost every role in the business other than being president," Giacin said. "I am very much looking forward to the president's position with the team that we have in place. I have been very fortunate throughout my career to observe and learn from some key individuals. My goal in the top position will be to continue operating and growing the company in the manner it has been done for the past 50-plus years."

Kaiser praised the work that Azzanni has done for Kaiser Electric. Azzanni will remain with the company until his retirement.

"George's vision and his ability to assemble an excellent staff has been a large part of Kaiser's success and we are excited that he will continue on our management team after January 2009,"Kaiser said.

In 2007, Kaiser Electric Inc. generated sales of $34 million in commercial, industrial and communications electrical projects. Major projects have included:

• Lighting of the Gateway Arch
• Cardinal Glennon Children's Hospital addition/renovation
• Metropolitan Sewer District's Lower Meramec Lift Station in St. Louis County
• SSM St. Joseph's Hospital expansion in Lake St. Louis
• St. Charles Community College expansion
• BJC O'Fallon (Progress West)
• Westar Headquarters in St. Charles
• St. Lukes OSB
• Vatterott College, North Park
• Emerson Auditorium

Kaiser and his brother Jim, 61, will continue to be active in the company until their retirement.

"Kaiser Electric is fortunate to have a large group of veteran project managers that are the back-bone of the company. Their expertise and relationships are invaluable. But, to bring long-term continuity to our company, I needed to build the company around our key, younger employees," Kaiser said. "These five are extraordinary individuals that have great skills in this industry and have done a fabulous job for Kaiser. I am convinced that this new leadership will enable Kaiser to grow, continue to perform the excellent work that we do for our customers, and to carry on Kaiser's reputation for providing a great place to work for its electricians and office staff."

Kaiser Electric Inc., based in Fenton, MO, has been providing electrical contracting and engineering services to the St. Louis metro area for more than 50 years. The company focuses primarily on industrial, commercial and communications projects and employs about 155 electricians and 34 staff members and has a fleet of 60 vehicles. For more information visit www.kaiserelectric.com or call 636/305-1515.

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