Debt purchase, joint venture bode well for new partnership
NORTH BAY – A joint venture between Codding Enterprises and Genesis Worldwide received additional impetus from Codding acting as an angel to the Canadian maker of steel frames.
[caption id="attachment_21687" align="alignright" width="360" caption="Codding Steel's frame buildings have an international market under Genesis SFS."][/caption]
Genesis SFS, formerly Codding Steel Frames, was recently launched to grow the market for Genesis technology in the U.S., South America and the Caribbean. Codding SFS previously licensed the technology.
Under the terms of the new partnership, Genesis Worldwide will own 40 percent of the new company, and Codding Enterprises and other Codding Steel investors will own 60 percent.
"The timing was excellent for both companies," said J.R. Gunter, new president and CEO of Genesis SFS.
"We're rapidly growing our commercial markets across the U.S. and eyeing the international market. Genesis Worldwide is looking for a way to expand its brand, especially in the U.S."
Codding Enterprises has also promised to pick up a term loan that was troubling the Ontario, Canada-based company.
An earnings statement released by Genesis on May 14 stated Codding Enterprises had promised to purchase an $894,177 debt within 10 days as demanded from the lender.
The same Genesis statement detailed a first quarter 80 percent drop in revenues compared with the first quarter of last year, from about $4.9 million to $965,000. The company laid off 47 employees.
Along with the divestiture of an engineered homes subsidiary, the partnership with Codding represents a "new strategic direction," for Genesis, the statement read.
Genesis SFS is in a position to grow, with both Genesis Worldwide and Codding Enterprises putting in initial cash contributions. And the new company will have the advantage of Genesis Worldwide's network of engineering and distribution partners in Canada, Egypt, Abu Dhabi, Eastern Europe and Russia.
According to Richard Pope, Genesis Worldwide CEO and chairman of Genesis SFS, the partnership "will propel the new Genesis towards success and recognition in the future."
Headquartered in a 50,000-square-foot zero-carbon fabrication plant at the Sonoma Mountain Village, Genesis SFS has about 25 employees.
"We expect to grow the staff by about a third during the next few months," said Mr. Gunter.