By Meagan Ingerson meagan.ingerson@indystar.com Scott Beil stands at the back of the serpentine business park on the Eastside, his back to the sun. It’s not yet noon, and the temperaturehas almost hit 80. He’s sweating slightly , but for a man in the ice business, that’s a blessing. “This?” he says, nodding at the sun to his back. “This is what we need.” After a rainy , temperate June, Penguin Ice Co. and other Indi- anapolis ice manufacturers should experience aboom start- ing with the Fourth of July. The holiday is usually the biggest single day for the ice business, Beil says, with increased sales lasting through August. Beil, 42, with his shaggy blond hair , looks more surfer thanice king. But he has worked in the industry since he was 15, when he got his first jobas an assistant to a delivery driver. By 18, he was bagging and deliver- ing ice on his own. It was all part of the family business. His father , Daniel Beil, bought Redbud City Ice Co. in Anderson in 1975, ac- cording to the IndianaHistori- cal Society. Daniel Beil con- tinued to buy other ice businesses across the state. In 1988, he purchased Polar Ice Co., founded in 1892. After Scott Beil bought the company from his father in 1998, Polar Iceexpanded into Kentucky , Michigan and Ohio, and was selling 17 million bags each year. Beil sold the com- pany in 2000 to Cincinnati- based Home City Ice, which manufactures and distributes ice across the Midwest. “ At the time, it was just a good business decision, ” Beil says of the sale. But after taking abreakfrom the industry , Beil says he opened Penguin Ice in 2006 to give Home City Ice abit of competition. At the time, Home City was the only major ice company in Indiana. MATT KRYGER / The Star COOL JOBS: Jim Shaffner (left) and grandson Jimmy bagice in the freezer at Penguin Ice. The upstart ice business runs out of the Enterprise Business Center. The company produces about 40tons of ice per day. RETURN TO THE COLD: Scott Beil sold family business Polar Ice in 2000; he began Penguin Ice in 2006. PENGUIN ICE CO. » FOUNDED: 2006 » OWNER: Scott Beil » LOCATION: 55 S. State St. » TONS OF ICE MADE PER DAY: 40. THE ICE INDUSTRY Manufacturers first got into business in the late 19th century, when they would cut icefrom frozen lakes and ponds in the winter and storeit during the year to fill customers’ice boxes. Artificialice plants popped up in the 1890s. With the mass production of the home refrigerator in the 1950s, icemanufacturers focused on selling ice instead to restaurants and hotels,as well as for specialoccasions. » See Ice, Page C3 Se c ond t ime i s tw i c e a s ni c e for i c ema ker Ve t er a n re tu rn s t o ind ust r y r u nning s ma ll I nd y oper a t ion
A biotech startup with Indi-anapolis roots has raised an-other $25 million in venturefunding to help it develop a newmigraine drug it licensed twoyears ago from Eli Lilly and Co.
The company, CoLucid Phar-maceuticals, is expected to an-nounce today that it raised themoney in a Series B financingthat included all of its originalventure firms — a move thatshows its backers believe thecompany is on the right track.
Yet, in a telling indication thatdrug development is increas-ingly a portable endeavor, Co-Lucid, which was founded atthe Indiana Venture Center in2005, is doing little of its day-to-day business in Indianapolisthese days.
Its three full-time researcherswork in Research Triangle Parkin North Carolina. Its chief ex-ecutive, a former Lilly manager,works in Boston, where he mostrecently was a senior executiveat a drug-discovery companyspecializing in insomnia. Four ofits five investors are based out-side of Indianapolis.
CoLucidgarners$25M infunding
New VC infusion willfurther developmentof migraine drug
COLUCIDPHARMACEUTICALS
» FOUNDED: 2005 inIndianapolis.» WHAT IT DOES: Developsnew drugs for migraine painand other central nervoussystem disorders.» CURRENT OPERATIONS:Research Triangle Park, N.C.;Boston.» CHIEF EXECUTIVE: JamesWhite.» EMPLOYEES: Four.» SALES: None.» INVESTORS: Care Capital ofNew Jersey, Pappas Venturesof North Carolina, Pearl StreetVenture Funds of Indianapolis,Domain Associates of NewJersey, and Triathlon MedicalVentures of Cincinnati.Source: CoLucid
» See Funding, Page C2
SECTION C ! TUESDAY, JULY 1, 2008
Business1 S T
+ INDYSTAR.COM/MARKETS Track the performance of your investments online.
Chairman/CEO Robert Laikinannounces job cuts in Europe.» C3
Reorganizing atBrightpoint unit
[OPPORTUNITIES]
Land a job at the airportDo you like to work around planes and travelers?
Indianapolis International Airport, which isundergoing a major overhaul, might have a job for you.
The Airport Authority will conduct a job fair from10 a.m. to 8 p.m. July 9 at the Radisson HotelIndianapolis Airport. Among jobs available:maintenance technicians, parking custodians andcashiers, and public safety officers. Also, food, retailand rental car operators will be seeking job applicants.
— John Russell
JUSTONEMINUTE
[THE TICKER]
DOW JONESINDUSTRIALS11,350.01 3.50
NASDAQ2,292.98 22.65
BLOOMBERGINDIANA INDEX406.22 2.71
S&P 5001,280.00 1.62
JohnKetzenberger
Friday the 13th was prettylucky for shareholdersof Genesco. Last Fridaywas even better.
And former Hat World chiefexecutive Robert Dennis is morethan lucky in all of this.
This is the failed mergerbetween Indianapolis athleticretailer Finish Line and Genesco,which is based in Nashville,Tenn. It has been a year sincethe ballyhooed merger wasannounced and nearly fourmonths since it was called off.
Finish Line agreed to giveGenesco 6.5 million shares ofstock as part of the settlement.Genesco gave the Finish Linestock to its shareholders on June13 — the lucky Friday. You couldlook at the one-third Finish Lineshare for every Genesco share asa gift for all the trouble Genescoshareholders endured the pastyear.
Take for example, a pair ofWisconsin investors, Brian Starkand Michael Roth. They own2.1 million shares of Genesco’sstock, so they got 712,719 sharesof Finish Line stock. The stakewas worth $5.7 million the daythey got it.
But Finish Line is on a tearlately. It reported strongfirst-quarter earnings Thursdayand expects the Olympics to helpnext quarter. So the stock is up70 cents a share since Stark andRoth got theirs through Genesco.
Do the math: That’s a$498,903 increase in a little morethan a week. Not bad — even if itdoesn’t make up for the $17-per-share plunge in Genesco’sstock price since last June.
Oh, about Bob Dennis. AfterGenesco bought Hat World in2004 Dennis moved to Nashvilleand became president. It lookedlike he was headed back up I-65because he was set to becomepresident of Finish Line whenthe Genesco deal was completed,but that got dashed in thedivorce.
Well, things turned out OK.Dennis becomes chief executiveofficer of Genesco on Aug. 1.
Best wishesMany people know John
Myrland from his days leadingthe Greater IndianapolisChamber of Commerce. Moreare getting to know him as theirminister at McCordsville United
MethodistChurch.
So word spreadfast that Myrland,57, had suffered astroke in the weehours of Mondaymorning. Doctorsat MethodistHospital still are
conducting tests, according toRoland Dorson, who succeededMyrland at the chamber.
Myrland went to the ClarianNorth facility Sunday eveningafter feeling numbness andtingling in his right arm, Dorsonsaid. The stroke occurred about3:30 a.m., Dorson added, andMyrland was transferred to theDowntown hospital.
Nancy Myrland told friendsand family that it will be severaldays before doctors know thestroke’s full effect.
Get well soon, John. We’repulling for you.
! Catch John Ketzenberger onWTHR’s 6:30 a.m. news everyTuesday and Thursday. He can bereached at (317) 444-6081 or [email protected].
Scott Beil stands at the backof the serpentine business parkon the Eastside, his back to thesun. It’s not yet noon, and thetemperature has almost hit 80.He’s sweating slightly, but for aman in the ice business, that’s ablessing.
“This?” he says, nodding atthe sun to his back. “This iswhat we need.”
After a rainy, temperate June,Penguin Ice Co. and other Indi-anapolis ice manufacturersshould experience a boom start-ing with the Fourth of July. Theholiday is usually the biggestsingle day for the ice business,Beil says, with increased saleslasting through August.
Beil, 42, with his shaggyblond hair, looks more surferthan ice king. But he has workedin the industry since he was 15,when he got his first job as anassistant to a delivery driver. By18, he was bagging and deliver-ing ice on his own.
It was all part of the family
business. His father, DanielBeil, bought Redbud City IceCo. in Anderson in 1975, ac-cording to the Indiana Histori-cal Society. Daniel Beil con-tinued to buy other icebusinesses across the state. In1988, he purchased Polar IceCo., founded in 1892.
After Scott Beil bought thecompany from his father in1998, Polar Ice expanded intoKentucky, Michigan and Ohio,and was selling 17 million bagseach year. Beil sold the com-pany in 2000 to Cincinnati-based Home City Ice, whichmanufactures and distributesice across the Midwest.
“At the time, it was just agood business decision,” Beilsays of the sale.
But after taking a break fromthe industry, Beil says heopened Penguin Ice in 2006 togive Home City Ice a bit ofcompetition. At the time, HomeCity was the only major icecompany in Indiana.
MATT KRYGER / The Star
COOL JOBS: Jim Shaffner (left) and grandson Jimmy bag ice in the freezer at Penguin Ice. The upstart icebusiness runs out of the Enterprise Business Center. The company produces about 40 tons of ice per day.
RETURN TO THE COLD: Scott Beilsold family business Polar Ice in2000; he began Penguin Ice in 2006.
PENGUIN ICE CO.» FOUNDED: 2006» OWNER: Scott Beil» LOCATION: 55 S. State St.» TONS OF ICE MADE PER DAY: 40.
THE ICE INDUSTRYManufacturers first got into
business in the late 19th century,when they would cut ice fromfrozen lakes and ponds in thewinter and store it during the yearto fill customers’ ice boxes.
Artificial ice plants popped up inthe 1890s. With the massproduction of the home refrigeratorin the 1950s, ice manufacturersfocused on selling ice instead torestaurants and hotels, as well asfor special occasions. » See Ice, Page C3
Second time is twiceas nice for ice maker
Veteran returns to industryrunning small Indy operation
Associated Press
Drug maker Eli Lilly and Co.will pay $64,400 to settle a law-suit accusing the company ofwithholding severance pay toforce an employee to withdraw adiscrimination charge.
The company also must spellout in future severance agree-ments that employees don’t haveto waive the right to file a chargewith the Equal Employment Op-
portunity Commission orcooperate in an investigation, ac-cording to an EEOC statement.
The EEOC accused Lilly ofviolating federal law by retaliat-ing against employee Starr E.Johnson after she filed a dis-crimination charge.
“A company may not condi-tion receipt of benefits, such asseverance benefits, on an em-ployee’s promise not to cooper-
ate with the EEOC,” Laurie A.Young, regional attorney for thecommission’s Indianapolis of-fice, said in a statement.
Lilly will pay Johnson $54,400in severance and $7,000 in inter-est and compensatory damages,according to a settlement orderfiled inU.S. District Court for theSouthern District of Indiana. Italso will cover $3,000 in attor-ney fees.
“The company’s settlementinvolves no admission of wrong-doing on Lilly’s part,” companyspokeswoman Carla Cox said inan e-mail. “And since we had al-ready altered the language towhich the EEOC objected, weagreed to resolve this dispute.”
Johnson worked for Lillymore than 23 years before shewas fired in 2005, weeks after fil-ing the charge with the EEOC.
Lilly settles discrimination suit for $64,400
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THE INDIANAPOLIS STAR ! INDYSTAR.COM 2 N D TUESDAY, JULY 1, 2008 C3
The Bloomberg Indiana Index is a weightedmeasurement of the performance of nearly60 public firms with strong ties to the state.The index over the last six weeks:
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13 15 19 21 23 28 2 4 6 10 12 16 18 20 24 26 30
52-week high:52-week low:
632.67 (7/16/07)406.22 (6/30/08)
Base value = 100 = July 1, 1994
406.22
MAY JUNE
ONLINE: Get market updates, trackIndiana winners + losers, and sign up forstock alerts at IndyStar.com/markets
INDIANA INDEX INDIANA WINNERS + LOSERS
HOOSIER STOCKS AT A GLANCE
52-HI 52-LO STOCK TICKER DIV. YIELD VOL LAST CHG 52-HI 52-LO STOCK TICKER DIV. YIELD VOL LAST CHG
NEW YORK — Wall Streetended a grueling first halfquietly Monday, closing mixedas investors again based theirtrades on what has become themarket’s dominant force: oil.
This was the worst first halffor the Dow Jones industrialssince 1970, when the countryfell into recession. The morediverse Standard & Poor’s 500and Nasdaq composite indexeshad their worst first half since2002, whenWall Street still wassuffering through the aftermathof the dot-com bust, the 2001terror attacks and a recession.
On Monday, stocks pulledback in the early going as oilreached another record, thistime above $143 a barrel. Themarket gathered some strengthas crude lost momentum.
There is little expectationthat the chaos of the first halfwill end soon. Besides the pun-ishing effect of higher oil prices,which threaten the stifle con-sumer spending and in turn, aneconomy struggling to grow, thestock market is contending withthe housing slump and thecredit crisis.
Investors made relativelysmall bets ahead of the comingearnings reports. The Dow rose3.50, or 0.03 percent, to11,350.01.
The S&P 500 index rose 1.62,or 0.13 percent, to 1,280.00, andtheNasdaq fell 22.65, or 1.21 per-cent, to 2,292.98.
The day’s modest movesstood in contrast to the heavylosses the market has suffered:
» In June, the Dow dropped10.19 percent, the S&P fell 8.60percent; and the Nasdaq lost9.10 percent.
» For the quarter, the Dowfell 7.44 percent; the S&P lost3.23 percent; and the Nasdaqhad an anemic 0.61 percent gain.
» For the first half, the Dow isdown 14.44 percent, the S&P12.83 percent, and the Nasdaq13.55 percent.
» Since their high point lastOctober, the Dow gave up 19.87percent, the S&P 18.22 percent,and the Nasdaq 19.80 percent. A20 percent drop from a marketpeak is considered the start of abear market.
ON WALL STREET
Volatile first halfhas subdued end
Now Beil runs his small operation out of the EnterpriseBusiness Center on South State Street. Beil says he hasspent about $1 million in startup costs.
The company produces about 40 tons of ice per day, justa small slice of the 1,000 tons daily that Polar Ice was pro-ducing in 2000. But Beil says running the smaller com-pany has been more enjoyable.
“Obviously, the headaches aren’t as big,” he says.“They’re two totally different animals. I always had toworry about fighting off guys like me. (Now) we’re excitedto get two stops.”
As Beil gives a tour of his ice factory, housed in a formersupermarket warehouse, he shows off the company’s twonewly installed 20-ton turbo ice makers. Together the twoice makers produce about 3,200 pounds an hour.
To make such large quantities, the equipment runsnearly 24 hours a day, Beil says.
Tap water is first run through a carbon filter, then fedinto the ice makers. The water is frozen for about half anhour in a series of large sheets, each a few inches thick.
Hot gas is used to separate the ice from the plates, re-leasing the sheets down into a grinder. The ice is thenground into cubes and carried by a conveyor belt to a bag-ging room. The cubes run through a baggingmachine, andthe bags are piled on wooden pallets several feet high fordelivery.
Before building the facility about six months ago, Beilwas buying ice from Cincinnati-based United DairyFarmers. Now he says he is making all the ice he sells.
Penguin fills about 300 ice boxes at gas stations, conve-nience stores and groceries around Indianapolis, with Beil
set to add a few dozen more boxes that he bought used.Business has gotten better as the Penguin name becomesbetter known, Beil says.
But Penguin’s growth is limited by geography and thelogistics of having only one manufacturing facility, Beilsays. The company depends entirely on small sales, whilelarger grocery chains like Marsh Supermarkets have con-tracts with the bigger Home City Ice.
“You can only go 60 to 80 miles (to deliver ice),” Beilsays. “Why does Wal-Mart want to take five stores andgive them to me when Home City’s got 500 of them?”
But surrounded by a field of new boxes waiting for thePenguin Ice label, Beil says the slow approach suits himjust fine.
“I’m trying to get every customer I can,” he says. “It’sjust more fun.”! Call Star reporter Meagan Ingerson at (317) 444-6304.
Ice» Penguin was buying from a supplier beforebuilding its facility six months ago.From C1
MATT KRYGER / The Star
ICE FOR INDY: Scott Beil’s Penguin Ice has onemanufacturing site that supplies 300 ice boxes in the city.Beil says he has spent about $1 million in startup costs.
The Bloomberg Indiana Stock Index movedlower again Monday. The 56-stock index fell0.7 percent on a day of active trading. Losersoutnumbered gainers 3-to-2.
Semitrailer maker Wabash National Corp.saw a sharp drop in its share price. Thecompany was in positive territory for theyear until its stock dropped 9.9 percent onthe day. Shares fell 83 cents to $7.56.
Shares of mobile-home maker PatrickIndustries jumped 15.2 percent on news thecompany planned to use proceeds from astock sale to pay down debt. Shares were up99 cents to $7.49.
Brightpoint is cutting a fewhundred jobs overseas, including po-sitions at the Denmark-based com-pany it bought last summer to makeBrightpoint the No. 1 cell phone dis-tributor in the world.
Brightpoint Chairman and ChiefExecutive Robert Laikin said Mon-day the cuts at the former DangaardTelecom facility were made to re-align its European operations to im-prove efficiency. Cuts are not a resultof a slowdown in handset sales that isoccurring in the industry, he said.
“It’s part of just a natural transi-tion of that integration,” Laikin said,referring to the $384.9 million pur-chase. “We think it will generatesome significant savings.”
Brightpoint said among the first 50to 75 positions to be cut is that of
Brightpoint’s European president,Steen F. Pedersen. He will leave thecompany Nov. 19 and be replaced byMichaelKoehnMilland, who will be-come president of Europe, MiddleEast and Africa operations.
Pedersen said in a statement hehad “mixed emotions” but that thecuts will aid the growth of Bright-point.
Brightpoint will shed an additional225 to 250 positions in its Europeanoperations, shrinking the work forcethis year to just under 3,000. No cutsare planned in the U.S. The savingswill range from $25 millionto $30 million, the company predicts.
Also as part of the reorganization,Mark Howell was named presidentof the Americas division and BruceThomlinson president of the Asia Pa-cific operations that cover India, Sin-gapore, Australia and New Zealand.
Brightpoint also lowered its globalwireless unit’s sales expectations —now predicting sales to be relativelyflat to slightly up, compared with aprior estimate of a 3 percent to 5 per-
cent increase.The news was received positively
on Wall Street. Shares of Brightpointrose about 2 percent to $7.30 in trad-ing Monday. The company’s stock isdown 52 percent since Jan. 2 andreached its 52-week low Friday whenit closed at $6.71. Brightpoint’s 52-week high occurred Nov. 13 at $18.28per share.
Analyst Oppenheimer & Co. re-ported Monday that it views as posi-tive last year’s Dangaard acquisitioneven though it “underdelivered oncost savings.”
“The organization changes shouldonly help it deliver on what we see asa strong pipeline of opportunities,”the report said.
Brightpoint is on pace to distribute100 million units in 2008, up from83 million last year, Laikin said, andis gaining more strength after agree-ing recently to become a supplier forBlackBerry specialist Research InMotion and Verizon Wireless.! Call Star reporter Tom Spaldingat (317) 444-6202.
Brightpoint to ax jobs in EuropeUnit’s president and up to
