Yaffe Announces Plan to Sell to Alter Trading

Yaffe Iron & Metal Co., Inc. has signed a letter of intent to sell all of the company's operations to Alter Trading Co., a St. Louis scrap metal operation.

"It doesn't mean we have sold, it doesn't mean we have a deal yet, there are still unknowns," said Lyle Bachman, executive vice president of administration for Yaffe. "But we have signed a letter of intent for Alter to buy and for us to sell."

The St. Louis company is expected to keep the Muskogee facility open, Bachman said. All of the facility's 87 employees have already been notified of the deal.

The deal is set to be finalized May 31, and has been in the works for more than a month, Bachman said.

Bob Ellis, a spokesman for Alter Trading, said that the two companies decided to officially announce the acquisition after news started to leak out about the preliminary discussions.

Yaffe, headquartered in Muskogee, has 14 processing facilities in Oklahoma, Kansas, Arkansas and Missouri. Yaffe's Muskogee facility has been open since 1944.

Alter has 16 scrap facilities and five trading offices. According to Ellis, there is very little overlap between the two companies, indicating a likelihood that most if not all of the Yaffe locations will remain open.

The Yaffe company has come under fire from Muskogee residents after a furnace exploded at the Muskogee facility Dec. 28, killing two workers, injuring 14 people and damaging hundreds of surrounding buildings. The cause of the blast is still unknown.

Neighbors of the facility have petitioned the city and county to regulate the facility closer, and emotions erupted last week at a meeting of neighbors, Yaffe representatives and public officials.

Bob Yaffe, the company's board chairman, said there are many reasons behind selling the company, and the outcry from neighbors may have had "something to do with it."

Ellis, vice-president and general council for Alter, said the company is in the process of evaluating all Yaffe facilities.

"There are definitely no plans on shutting (the Muskogee facility) down," Ellis said. "No plans whatsoever."

Ellis would not say how much Alter has offered for the Yaffe company.

Paul Schwartz, the Yaffe company's CEO and top shareholder, said the company would be passing into good hands.

"I have known the principals of Alter Trading for many years, and I am very pleased that they are acquiring our business," Schwartz was quoted as saying in a news release. "Alter Trading has the management experience, systems and resources necessary to continue to grow and improve the Yaffe organization."

The release also said Robert Goldstein, Alter's CEO, was eager to complete the deal.

"The Yaffe employees and locations represent a very good strategic fit for our growth plans and we look forward to adding them to our organization," Goldstein was quoted as saying.

Alter Trading Company was founded in 1898 and has 16 processing facilities and five trading offices located in seven states throughout the Midwest.

Local officials were surprised to hear the Yaffe company is planning to sell all of its operations, saying they did not see the move coming.

Muskogee Mayor Hershel McBride said late Tuesday he had not heard the company was planning on selling .

"I'd hate to lose Yaffe," McBride said. "Hopefully (Bob Yaffe) will still live in Muskogee."

Gene Wallace, District 1 county commissioner for Muskogee County, said he was shocked to hear the company plans to sell.

"They have been a presence here in Muskogee for over 50 years, and the Yaffe family has been one of the more philanthropic families in the community," Wallace said. "I'm personally shocked. (Bob Yaffe) is a personal friend of mine. I'm just really surprised. It's a note of sadness for Muskogee that the family will divest themselves of their assets."

City councilman David Ragsdale Jr. would not offer comment on his thoughts on the deal.

Ronnie Pevehouse, District 2 county commissioner, said Muskogee was losing more than a business.

"I think it will be a detrimental loss to the city of Muskogee," Pevehouse said. "The man's been awful generous in making improvements in Muskogee."

When the Yaffe company announced the sale plan, not all said they were unhappy to see it go.

Some of those affected by the Dec. 28 furnace explosion at the facility, which killed two workers, injured 14 people and damaged hundreds of houses and businesses, are ready for the change.

"I think it will be a good thing, as long as the company doesn't treat us like Yaffe treated us," said Ivory Vann, a neighbor of the facility who has asked city and county officials to do something about the plant. "Maybe we'll get better results with this company. I just hope those employees don't lose their jobs."

Vann said he still plans to petition the city council to annex the property the Yaffe facility is on now into the city.

However, the new company may replace the furnace that was destroyed during the blast, a move Vann said he has no problem with as long as the property is annexed into the city limits.

"If they're going to put another furnace in - find out why the other one blew up first," Vann said. "I just hope the new company has a safer record."

Diane Kuehn, who's husband was a furnace operator at the facility until the explosion, said she hopes the company is not sold.

"Mr. Yaffe is one hell of a moral and ethical man," Kuehn said. "He's done so much for his employees and their families. It would be a sad day if Mr. Yaffe plans to sell, but I would respect his wishes."

Kuehn said the company is like a big family, where everyone is on a first name basis.

"I think it would be a huge loss," Kuehn said. "I feel like a Yaffe family member, that's how well he treats his employees. I think we'll be losing one heck of an employer." Muskogee (Oklahoma) Phoenix