Joint Venture Partnership with Centerline

The C.A. Lawton Co. and Centerline Machining & Grinding Inc. Enter Joint Venture Partnership – Partnership will increase capabilities and market diversity

Media Release

January 8, 2013 – FOR IMMEDIATE RELEASE

Contact Patrick Kotowski

Director of Business Development

(920) 983-4091

pkotowski@calawton.com

De Pere, WI – On December 28, 2012, The C.A. Lawton Co. (Calco) formed a joint venture with

Centerline Machining & Grinding Inc. This new partnership between two Green Bay, WI, area businesses, to be known as Centerline Machining & Grinding, LLC (Centerline), consists of Centerline’s assets and operations, as well as contributions of capital and equipment from Calco.

It will allow the companies to market the capabilities of both businesses to their distinctive sets of existing customers, as well as plan and invest together in new projects and capabilities. The joint venture increases the customer base and market reach for both companies.

“We are very excited to be joining forces with Centerline. One of Calco’s strategic objectives is to increase the number of machined components we provide. This will enhance our ability to increase production in our foundry,” said Alex Lawton, Calco’s CEO.

The relationship allows the current owners and managers at Centerline to continue their success in directing day-to-day operations. The limited overlap in capabilities creates an opportunity for future investments in new machines to increase capacity and flexibility, allowing the shops to jointly manage workloads and capitalize on new opportunities. The partnership with Centerline improves Calco’s ability to meet an increasing demand for machined components in markets including mining, oil & gas, and agriculture.

“This is not a wholly owned subsidiary or ‘plant 2’ for Calco, but a partnership with a distinct operation and its own identity, ownership structure, management, and so on. We’ll sell together, invest together, and over time look for opportunities to make both sides stronger. It fits nicely between our own onsite shop and our key external sourcing partners. As we continually increase the percentage of castings that we sell machined versus raw, Centerline will play a critical role in that growth,” added Lawton.

About The C.A. Lawton Co.

The C.A. Lawton Co. is ISO 9001:2008 certified and has well over a century of experience as a leading manufacturer of industrial components, employing approximately 150 people between two facilities in De Pere, WI. Its integrated business includes patternmaking, casting, and machining capabilities. The C.A. Lawton Co. provides large iron castings and machining to domestic manufacturers in the HVAC, municipal pump and valve, oil & gas, mining, and power generation industries. Its customers include General Electric, IR/Trane, Metso, and Siemens.

About Centerline Machining and Grinding, LLC

Centerline Machining & Grinding, LLC is a state-of-the-art machine and fabrication shop employing approximately 20 people in its 30,000-square-foot facility located in Hobart, WI. Its focus is to be a complete source to customers by providing CNC horizontal and vertical machining centers, CNC horizontal boring mills, CNC lathes, CNC OD and surface grinding, and CNC laser and press brakes. Centerline Machining & Grinding, LLC serves the packaging, converting, and machine-building industries.

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