Global Fastener News

Haggerty Replaces Schonholtz at Heads & Threads

John Wolz

Don Haggerty is the new CEO of Heads & Threads International after the departure of Steve Schonholtz, officials of parent company Alleghany Corporation confirmed.
Haggerty was president of Reynolds Fasteners when it was part of Acktion Corporation. He became executive vice president of HTI when New York-based Alleghany acquired Reynolds in 2000.
�By mutual agreement, Mr. Schonholtz has stepped down as president and CEO of HTI and plans to pursue other opportunities,� according to the official company statement. �Mr. Schonholtz has been a leader in the fastener industry domestically and internationally and has contributed significantly to the growth of HTI over the past several years.�
Heads & Threads recorded pretax losses of $3.9 million in the opening quarter this year, compared with $2.8 million in earnings in the first quarter of 2000. Alleghany said the results reflect a material slowdown in the markets for its products and costs of assimilating the acquisitions made in 2000.
Overall, Alleghany reported first quarter 2001 income of $460.5 million from continuing operations, compared with a loss of $33.3 million a year ago. Excluding a gain of $474.8 million from the disposition of Alleghany Asset Management, income from continuing operations was $14.3 million.
The company�s quarterly report noted that the results �are not indicative of operating results in future periods.�
One competitor speculated that Heads & Threads had discounted prices too much recently. �We wondered what was going on,� the competing importer said.
Schonholtz reportedly has a noncompete agreement with Alleghany for the next 18 months.
Schonholtz headed Gardenbolt International when it was acquired by Alleghany in 1998. Schonholtz succeeded Lee Bookman as CEO of Heads & Threads when Bookman retired soon after the Gardenbolt acquisition.
The departure of Schonholtz surprised the industry. Last year Alleghany vice president Jeff Kirby told FIN that �Steve was a very important part of [buying Gardenbolt].�
Alleghany treasurer Peter Sismondo said the corporate office never paid much attention to Heads & Threads under Bookman. �Lee Bookman ran the company so well,� Sismondo said of the past management relationship. �He sent up cash and didn�t require attention. He was the first one in with the numbers and always had good numbers.�
As an importer and member of the Public Law Task Force, Schonholtz testified before the U.S. Senate on the 1999 changes to the Fastener Quality Act. The National Fastener Distributors Association presented Schonholtz with special recognition for his FQA work.
Heads & Threads is an importer and master distributor with annual sales of more than $150 million. Alleghany also is in the industrial minerals and global insurance and reinsurance businesses.\
�2001 FastenerNews.com