ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, September 17, 1996 TAG: 9609170074
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
SOURCE: JEFF STURGEON STAFF WRITER
THE CAP AND GOWN manufacturer was founded more than a century ago in Salem. Now it's leaving the family.
The Rite Aid drugstore chain's founder and an associate have purchased a graduation cap and gown manufacturer that was founded more than 100 years ago in Salem.
The new owners of Oak Hall Industries Inc. said Monday they plan no immediate changes that would affect the company's 100 employees. The seller of the company was Malcolm Rosenberg.
Drugstore executive Alex Grass, who left as chairman of Rite Aid Corp. six months ago, and Rosenberg have known each other for about 15 years through their involvement with United Jewish Appeal. The New York charity raises funds for humanitarian and social programs for Jews worldwide.
Over the years, Rosenberg built the company into one of the four largest such U.S. makers competing for shares of the $75 million domestic market for academic caps and gowns and robes.
Under Grass, Rite Aid expanded from one store in 1962 to more than 2,500 at his retirement in March. The Camp Hill, Pa., chain earned $150 million on sales of $5.5 billion last year.
Grass could not be reached Monday, but Peter Morrison, his partner in the purchase of Oak Hall, said Grass wanted the company because of his "high regard" for how Rosenberg ran it.
"I'll take that as a compliment," Rosenberg said. "I think he considered it a business opportunity."
Rosenberg said only that "it is the time" for him to sell the company, which was founded by his family in 1889.
Oak Hall Industries was renamed Oak Hall Industries LP when the sale was completed Sept. 6. Terms of the sale of the private company were not released. Morrison will manage the business's daily affairs.
"Our plan is to run the company the way it's been run in the past, which has been highly successful," he said. Morrison is a former senior vice president with NationsBank Corp. in Bethesda, Md.
LENGTH: Short : 45 linesby CNB