Caltech and KHIC Calibrate for Future Growth
Monday March 25, 2002
Equity deal positions Caltech to keep up with growing demand for calibration work
A local calibration laboratory has signed an equity agreement with a business development firm focused on Southern and Eastern Kentucky, the firm announced today. Kentucky Highlands Investment Corporation (KHIC) will hold an equity stake in Caltech, Inc., and help the internationally accredited company receive financing and other assistance.
“This agreement between Kentucky Highlands and Caltech enables us to grow at a rapid pace, keeping up with the demand for our work,” said Michael Matthews, president of Caltech. “Kentucky Highlands brings a lot of specialty services and ideas to the management at Caltech.”
Caltech is one of a handful of similar laboratories in the South, calibrating electrical, thermodynamic, mechanical and dimensional instruments. With its ISO/IEC 17025 accreditation, the company is certified to calibrate equipment for virtually any industry in the world—industries as diverse as biomedical, nuclear and automotive.
For instance, Caltech’s newest customer is Honda. Caltech is opening a new site office in Oxford, Ala., to serve Honda’s newest facility in Lincoln, Ala.
Opening out-of-state offices is a far cry from just a few years ago when Matthews was a one-man operation in Albany, Ky. He incorporated Caltech in 1997. The company now employs four full-time workers and five contract workers for specific customers.
“Kentucky Highlands is very experienced in helping small corporations gain national recognition as leaders in their industries,” Matthews said. “As we began to grow rapidly, we went to Kentucky Highlands to keep that growth constant and steady.”
As the business grows, KHIC will make other investments in Caltech and raise other financing as well as help the company execute its business plan.
“Kentucky Highlands is encouraged and excited about working with an entrepreneur of Mike Matthews’ caliber,” said Birdie Watkins, Investment Analyst at Kentucky Highlands.
Matthews said KHIC was the natural choice for the partnership.
“Kentucky Highlands has an enormous amount of knowledge in the arena of financing and stabilized growth,” he said. “They have worked with me from the inception of the corporation. No matter what I asked for, they had an answer. I can’t imagine having a better partner in any business venture.”