Schmitt Industries Announces Strategic Reorganization
November 27 2018 - 8:30AM
Schmitt Industries, Inc. (NASDAQ: SMIT) today announced a strategic
reorganization that will position the company to capitalize on the
growing SBS Balancer business, while streamlining the company and
maximizing shareholder value through the disposition of non-core
assets.
The new Schmitt structure organizes the core SBS Balancer
business under Donna Witkowski, who is being promoted to SBS
President. David Case will transition from CEO and President of
Schmitt Industries to serve as Special Advisor to the Board of
Directors to steward the reorganization through mid-April 2019. All
product lines - SBS, Xact and Acuity - will report to Michael
Zapata, the newly appointed Executive Chairman and President of
Schmitt Industries. These changes will take effect December 1,
2018.
“We are strategically positioning Schmitt for the future and
committing to a more effective SBS business to better serve
customers worldwide, increase growth, and maximize shareholder
value,” said Michael Zapata, Executive Chairman and President,
Schmitt Industries. “On behalf of the Board I’d like to thank David
Case for his leadership and dedication over these years. His
commitment to Schmitt will continue to play a key role as he serves
as Special Advisor to the Board during this reorganization.”
Executive Chairman and President of Schmitt
Michael Zapata was recently elected to Schmitt’s Board of
Directors. He has an engineering degree from Texas A&M
University and an MBA from Columbia University. Mr. Zapata is the
founding member of Sententia Capital Management, LLC, a value-based
fund. Prior to founding Sententia he served as a Special Operations
Officer in the U.S. Navy from 2001-2010.
“The Schmitt Board has made a strategic decision to appoint
Michael as Executive Chairman and President to oversee this
reorganization. He comes with a unique combination of leadership,
strategy development, and operational execution on a global scale
that we believe will serve both our customers and shareholders
well,” Michael Ellsworth, Chairman of the Board of Directors,
said.
Schmitt Leadership Team
With these changes, the Schmitt Leadership Team will be
structured as:
- Michael Zapata, Executive Chairman and President
- Ann Ferguson, Chief Financial Officer; Xact General
Manager
- Donna Witkowski, SBS President
- Kelvin Woltring, North American Sales Manager; SBS Product Line
Manager
- Al Hooton, Chief Technology Officer; Acuity General
Manager
SBS President
Donna Witkowski has been promoted to SBS President and will lead
the SBS team as they focus on growth and optimization to support
Schmitt’s world-wide customer base. She will report to the
Executive Chairman. After 5 years with Coca Cola Refreshments as a
Production Manager, Witkowski accepted a Production Manager
position with Schmitt Industries in 2016 covering the SBS, Acuity,
and XACT product lines. In January of 2018 she was promoted and
took on the added responsibility of Supply Chain Management. With a
Bachelor’s Degree in Engineering and a Master’s in Business
Administration, Donna’s focus on streamlining operations and
developing processes has resulted in greatly improved customer
deliveries as well as decreased costs.
SBS Product Line Manager
Kelvin Woltring has assumed the role of SBS Product Line Manager
and will partner with Donna to direct customer base growth and
product development. Woltring joined Schmitt’s engineering team in
1999 and has been instrumental in product development for both the
SBS and Xact business lines. In 2017, Kelvin was promoted to SBS
Sales Manager for the North American and Japanese markets.
“Since joining Schmitt, Donna has proven herself a strong
executor with a keen understanding of team integration. I am
confident in Donna’s ability to lead the core SBS business with her
team and deliver enhanced execution and performance for the growing
customer base and industry. Further, Kelvin Woltring’s
understanding of our customers’ needs and product knowledge will be
key in future product development to lead the way in the grinding
industry,” David Case, Special Advisor to the Board, said. “I’d
like to thank the entire Schmitt team as they have worked
tirelessly to set the Company up for success and I am eager to
assist the Company during this transition.”
Board of Directors
The Board of Directors has expanded the Strategic Advisory
Committee, which now consists of Charlie Davidson, Andrew Hines and
Michael Zapata. The Committee will help to assess incoming
proposals and advise on the strategic direction of the Company.
Schmitt also announces the retirement of Michael Ellsworth, as
Chairman and director, which will be effective December 1, 2018.
Mr. Ellsworth has been a director since 2006 and served as Chairman
since 2017. Effective December 1, 2018, the Board of Directors will
consist of Charlie Davidson, Andrew Hines, Michael Zapata and David
Hudson. Messrs. Davidson and Hines will comprise the Audit
Committee, Compensation Committee and Nominating Committee. The
Board vacancy, created by Mr. Ellsworth’s retirement, is expected
to be filled in the near future to comply with NASDAQ independence
rules.
The Board of Directors expresses its gratitude to Mr. Ellsworth
for his years of service and leadership. “Those who know Michael
personally admire him not only for his business judgment but for
his personal values and beliefs,” Mr. Zapata said. “We thank him
for his service and dedication and wish him well on behalf of the
entire Company and Board.”
About Schmitt Industries
Schmitt Industries, Inc. (the Company) designs, manufactures and
sells high precision test and measurement products for two main
business segments: the Balancer Segment and the Measurement
Segment. For the Balancer Segment, the Company designs,
manufactures and sells computer-controlled vibration detection,
balancing and process control systems for the worldwide machine
tool industry, particularly for grinding machines. The
Company also provides sales and service for Europe and Asia through
its wholly owned subsidiary, Schmitt Europe Limited (SEL), located
in Coventry, England and through its sales representative office
located in Shanghai, China. For the Measurement Segment, the
Company has two core product lines: the Acuity® product line, which
consists of sales of laser and white light sensor distance
measurement and dimensional sizing products; and the Xact® product
line, which consists of sales of remote tank monitoring products
that measure the fill levels of tanks holding propane, diesel and
other tank-based liquids and revenues from the related monitoring
services associated with the transmission of data from the tanks to
a secure web site.
For more information contact: Ann M. Ferguson, CFO and
Treasurer, (503) 227-7908
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