O'Leary Named Kaydon CEO

O'Leary Named Kaydon CEO Kaydon Corp. announced it has found a replacement for retiring President and CEO Brian Campbell, completing a surprise transition plan announced just last month. Effective May 1, James O'Leary [bio], former Chief Financial Officer of Beazer Homes USA Inc. will take over from Mr. Campbell as President and CEO. Kaydon operates North American bearing plants in Muskegon, Michigan; Sumter, South Carolina; Mocksville, North Carolina; and Monterrey, Mexico. Bearing manufacturing and sales are part of its Friction and Motion Control segment. Mr. O'Leary has been on Kaydon's board of directors since 2005, and is chairman of the audit committee. He had been with Beazer since 2002, from LCA Group Inc., where he had been Chairman and CEO. Beazer is the sixth largest homebuilder in the United States, and also handles mortgage loans for Beazer-built properties and planned communities. In Beazer's most recent quarter, ended December 31, 2006, the company lost $59 million on sales of $807 million, down from a 2005 period profit of $90 million on sales of $1.1 billion. Beazer shares have fallen by more than half in the past year, as loan origination and default problems have surfaced. Beazer has since acknowledged reports it has been contacted by federal officials in a probe involving the FBI, IRS, HUD, and the Justice Department. Reportedly, the probe was triggered by problems in the Charlotte, North Carolina area, where Beazer's low-income mortgage origination operation and lending practices are under scrutiny for a high foreclosure rate. Just one Charlotte area neighborhood built by Beazer has experienced government loan default payouts of more than $5 million. Last month, Beazer fired Kenneth Gary, its General Counsel, citing "a personal pattern which includes violations of company policies." About Mr. O'Leary, Mr. Campbell said, "I'm delighted that Jim will be joining Kaydon as its new President and Chief Executive Officer. I have known Jim for eight years and have always been impressed by his well-honed intellect and broad and diverse skills. He brings a wealth of business, operations, and financial experience to Kaydon, and the Board and I enthusiastically welcome his forthcoming contributions to our Company. Jim is uniquely qualified to lead Kaydon to continue the outstanding growth and shareholder returns which the Company has achieved during the last five years." Mr. O'Leary said, "I am excited by the opportunity to lead the team Brian has assembled and build upon the strong foundation in place at Kaydon. The years ahead will provide many opportunities to create further value for our shareholders. I'm appreciative to Brian and the board for the opportunity to drive both growth and outstanding shareholder returns well into the future."