Corporate Profile History

Koch Enterprises, Inc. is beating the odds.  Studies show that 80 percent of U.S. businesses are family owned or operated by families.  While 30 percent of these businesses reach the second generation, only 10 percent make it to the third generation.  In other words, 90 percent of all family businesses fail, dissolve or are sold before reaching the third generation.  Koch Enterprises, Inc. is being run by Robert L. Koch II, fourth generation family member. 

Koch Enterprises is beating the odds in more ways than one.  As Koch Enterprises enters the 21st century, not only are they celebrating over 135 years of service, they have been named the 12th largest private company in Indiana and one of the top 500 privately held businesses in the US. 

Current President and CEO, Robert L. Koch II, believes the longevity and success of the company can be attributed to its willingness to change with the times.  “In the early days, the company sold tin horns and metalcraft.  Then we changed to paint finishing systems.  Now we are an upscale engineering firm with subsidiaries that range from sealants and adhesives to aluminum die castings.  In the ever changing world of business, if you don’t change with the times, you’re going to fall behind,” said Robert L. Koch II.  One thing that has remained constant is the involvement of the Koch family.

Early Years
The history begins with George Koch, the founder of George Koch Sons, Inc.  George was born the fourth son of five to Phillip and Anna Margaretha Koch of Albig, Germany.  The Koch family set sail from their German home to come to America in 1843.  Their plan was to reunite with family members in Evansville, Indiana. 

Young George was always in search of an adventure.  Every year it was his custom to build a flatboat, load it with handcrafted merchandise, and float down the river to trade with townspeople.  One year, George decided not to return to Evansville.  He had sold everything aboard his flatboat by the time he reached Vicksburg, Mississippi and decided to call this home. 

When the Civil War broke out in 1861, George drafted in the Confederate Army.  Little did he know his four brothers were fighting on the opposite side in the Union Army.   Fortunately the men never came face to face.  After the war, George married and started a small tin shop in Vicksburg.  In 1872, a tragic fire destroyed his tin shop, and shortly thereafter, George and his wife Anna decided to board the Robert E. Lee Riverboat to return to Evansville, Indiana.

In 1873, George Koch established the George Koch Tin Shop in Evansville with financial support from his family. In 1903, George Koch died, and his wife, Mary C. Koch, became president of the company. In 1904, Mary and her three sons incorporated the company name from the George Koch Tin Shop to George Koch Sons, Inc. in honor of their father. All three sons and their mother were directors and officers. Louis was elected secretary and treasurer. Though the name had changed, the sons maintained their father’s philosophy of hard work, quality, service, and innovation.

In 1906, Albert, the youngest brother, was elected as president. Albert’s older brother, George W., became vice president. Louis J. remained secretary, treasurer, and manager while Mary remained as a director.

The same year George died, 1903, Louis married Clarice Ashburn.  Over the years, thecouple had nine children, Roderic Malcolm, George Ashburn, Mary Ellen (Helen), Robert Louis, William Albert, Martha Lois, Amelia Virginia, Katheryne (Kay), and Louis Joseph, Jr. (L.J.). Because of  his children, Louis was able to use his talents to keep George Koch Sons thriving during World War I.  During Christmastime in 1914, no toys were imported from Europe.      

Louis experimented and developed tin horns as Christmas presents for his children.  Orders began pouring in, and George Koch Sons began production of its first mass-produced manufactured product.

After World War I, the sales of tin horns slowed down and George Koch Sons stopped production.  Fortunately, Louis came through again.  Louis had formed a valuable relationship with Mead Johnson, Sr. who owned a company located two blocks from George Koch Sons.   Louis solved Mead Johnson’s production problem of their number one selling product, Dextro Maltose, a nutritional drink.  Mead Johnson, Sr. showed his appreciation to Mr. Koch for his achievement by guaranteeing all Mead Johnson jobs in Koch’s line of work.  Their relationship lasted almost two decades through the 20’s and the 30’s, and Koch provided them the services needed day or night.

Toward the end of the 30’s, Louis’ oldest son, Malcolm, introduced George Koch Sons’ s second manufactured product, metal floral containers.  Based on the experience gained in the production of tin horns, a process was developed to manufacture metal floral containers.  The new floral containers were in demand.  Production expanded rapidly, and soon GKS products were sold to florists all over the country.  With aggressive monthly advertising, George Koch Sons became the largest manufacturer of floral metalcraft in the world.  Each of the sons worked after school and during the summers at the company, and following college they became permanent  employees of George Koch Sons.  This succession of family helped provide a steady growth during a period when other businesses failed.  New ideas joined with age-old skills kept the company expanding.

Third Generation
Roderic Malcolm, eldest son of Louis Koch, joined the company after attending the University  of Wisconsin.  He later graduated from the University of Evansville and received an honorary Doctor of Humanities degree from the University of Southern Indiana in 1980. Malcolm began his work with the company as a machine shop foreman in the 20’s and served as the executive vice president from 1939 until his death in 1981. The Koch Planetarium was named after Malcolm for his efforts to bring a planetarium to the Evansville Museum of Arts and Science.

George Ashburn was the second son to enter the company.  After his graduation from the University of Chicago, he worked in Chicago and Omaha, Nebraska and then returned to work    in, and later direct, the Personnel Department of George Koch Sons.  In 1953, Ashburn became the resident manager for George Koch Sons in Portsmouth, Ohio, where the company had received  the largest ever sheetmetal contract to build an Atomic Energy Plant.  Upon his return to Evansville in 1956, he served as vice president and industrial relations director, the position he held until his untimely death in 1959. 

Robert Louis was the third son to join the family business.   Bob began work in the factory,  but because of his perfect manuscript, George Koch insisted he work in the Accounting Department.  All work was handwritten at that time, and none of the other brothers had legible handwriting.  Through his leadership, the company began selling its painting systems around the world. Bob received an honorary Doctor of Law degree from the University of Southern Indiana in 1977.  Bob was very active in the community, serving on many community, bank, university, and business boards.  He later became president and chairman of the board in 1962.

William Albert, the next son, entered the business in 1938 after receiving his degree from Purdue University.  He helped develop and standardize industrial finishing products.  He left for the Navy four years later.  Following the war, he directed advertising for the various divisions and later accepted a position at a subsidiary of George Koch Sons, Santa Claus Land, located in Santa Claus, Indiana.  Bill became manager of Santa Claus Land, the first theme park in the country. In 1984, George Koch Sons traded the assets of Santa Claus Land for the shares that Bill Koch and his family had in the company. He then renamed the new company the Koch Development Corporation. This company now includes Holiday World, Splashing Safari, Holiday Village, Christmas Lake Village, and the Lake Rudolph Resort.

L. J. Koch, Jr., youngest son of Louis, had been around the company with his father and older brothers since birth.  He officially began his career at George Koch Sons in 1943.  Following his return from the service and graduation from Southern Methodist University, he began the supervision of the company’s paint products and items for the Metalcraft florist line.  In 1988 the company traded the assets of the Metalcraft business to L.J. Koch Jr. and his family for their shares in George Koch Sons. Later, L. J. renamed the company, Koch Originals, which manufactures decorative metal furniture and floral equipment.

New Technologies
The 1930’s brought about the industrialization of Evansville and a new division at George Koch Sons, the Industrial Division.  George Koch Sons experienced continued success of the Metalcraft Division, but with the new industrialization of the city, noticed the need for a new product - paint finishing systems.  George Koch Sons  knew there was this need as they had trouble finding quality finishing paints to coat their metal.  George Koch Sons realized that new companies needed quick-drying and durable finishing paint to use on their products.

The Industrial Division of Koch first developed paint curing and drying ovens, and then a series of standard ovens.  They designed and manufactured pretreatment washers, paint ovens, spray booths, and conveyor systems.  Before Koch knew it, all types of manufacturing businesses around the midwest began to look to Koch for their painting systems, drying ovens, and other industrial sheet metal needs.

Uncharted Territory
In 1936, George Koch Sons decided for the first time to expand into an industry completely unrelated to their other business, the air conditioning industry.  George Koch Sons bought a  Carrier franchise and became the first franchised distributor for Carrier Air Conditioning Company.  During this time, only two places in Evansville were air conditioned.  They were cooled with well water that was run through a cooling coil with a large fan placed to blow across it and create cool air.  Evansville became an air-conditioned city much sooner than other same size cities.

World War II
In 1942, George Koch Sons stopped production of metalcraft for customers and started the construction of war products.  A federal law was passed that required all manufacturing of non-essential metal goods to be stopped in order to use all metal in the war effort.  As with all companies at this time, the plant’s chief duty became to support the country throughout World War II.

In support of the new law and increased war efforts, George Koch Sons built a new plant in 1942 on Upper Mount Vernon Road in Evansville.  The craftsmen's metalworking skills were quickly put to use as they began the fabrication of parts for the famous LST ships.  Other systems for the war effort were also produced at the new plant.  These systems were produced for other factories throughout the US that included spray booths for aircraft wings, shell case testing equipment, and fixtures for aircraft wings and engines.  Also manufactured  were ovens for dehydrating, baking, and testing.

Peacetime
Following the war, the plants went back to their regular product lines with the Metalcraft Division making an immediate success in their wrought-iron furniture line.  The Industrial Division was also flourishing.  They produced a conveyor that was, and still is, considered the most efficient in the wood finishing industry, the close-packing DeBurgh Conveyor. 

During the 50’s, GKS was awarded several contracts.  In 1952, the Atomic Energy Commission awarded Koch a $50 million contract, the largest sheetmetal project ever awarded to one firm in American business history.  GKS was also awarded contracts with General Motors, Chrysler and Ford for special metal finishing systems.  These systems used the methods of dip coating, flow coating and spraying - the forerunners of the electrocoating, electrostatic spray and powder coating systems the company supplies today.

Electronic advancements in the 60’s provided the company with an increased range of technology to provide new and improved finishing systems.  This increase in technology also led George Koch Sons to the formation of a new division, Ashdee, to spearhead testing and research in the development of new equipment.

Fourth Generation
Robert L. Koch II began as vice president of the newly formed Ashdee Division at age 23.  With his ambition and drive for success, the sales rose; and two years later he became president of the Ashdee Division.  As vice president of George Koch Sons, Robert L. Koch II worked next to his father.  In 1980, he became president; and following his father’s death in 1989, he became CEO.  In 1998, he was named Indiana Entrepreneur of the Year by Indiana’s Chamber of  Commerce.  He graduated cum laude with a mechanical engineering degree from the University of Notre Dame and earned an MBA from the University of Pittsburgh.

James H. Muehlbauer, son-in-law to Robert L. Koch,  joined the company in 1966, as engineering manager of the Ashdee Division and later the Industrial Division.  In 1982, he was named executive vice president, and in 1999, president of George Koch Sons, LLC. He holds a BS in Mechanical Engineering and an MS in Industrial Administration from Purdue University and in 1991 received the Purdue University Alumni Association Citizenship Award.

A New Leader
The 60’s also brought about George Koch Sons’s largest investment and the presidency of Robert L. Koch, third son of Louis.  Robert was named president and CEO of the company in 1962.  He served as president until 1980, but remained chairman until his death in 1989.

Robert L. Koch steered the company through steady growth, increasing sales from $1 million to $200 million during his presidency.  He also provided leadership for the Industrial Division’s emergence as one of the major equipment suppliers to American industry.  Robert L. Koch was responsible for the one million dollar investment purchase of Gibbs Die Casting Corporation.  While this was the biggest risk ever taken at George Koch Sons, it marked the beginning of a very successful new business for the company.

George Koch Sons had acquired small subsidiaries before; however, none had proven worthwhile enough to greatly expand the business.  The purchase of the large, family-owned company, Gibbs Die Casting, was different.  It opened new doors for GKS.

Gibbs Aluminum Die Casting Corporation was started in 1965 by Robert Kenneth Gibbs.  He was the Chief Executive Officer, while his 26 year old son Nick was named president. In 1993, they changed their name to Gibbs Die Casting Corporation to focus on magnesium products as well as aluminum.  Together they built Gibbs up to grow into one of the largest die casting companies in the United States.  The manufacturing process of Gibbs has been accepted by the world casting market as superior to conventional die casting.         “Automotive News” lists Gibbs Die Casting as one of the 100 top OEM suppliers to North America.  Gibbs operates eight factories making custom aluminum and magnesium castings, machining, and assembly and die building. Nick oversaw the daily operations of the company until his retirement in 2005. After an extensive search, Ken Sparks was named president and CEO in 2006.

In 1980, Robert L. Koch II was elected president of the company. Under his leadership in 1985, George Koch Sons acquired Uniseal, Inc.  At the same time GKS purchased Uniseal, George Koch Sons started Uniseal Rubber in Fenton, Missouri.  Uniseal Rubber Products extruded low-density, close-cell sponge rubber in various shapes.  In 1995, Uniseal Rubber merged with Uniseal, Inc. and within the year moved to Evansville, Indiana. 

Uniseal, Inc. was founded in 1960 with Walter Zahn and a group of his fellow chemists    and chemical engineers.  They expressed confidence in the future growth of sealants and adhesives.  Uniseal actually began production in 1962 in a 40,000 square foot facility located on Diamond Avenue in Evansville.  Walter served as the director of R&D and was later promoted to the position of president.  Walter’s son, Randy, also started in R&D, later became plant manager, then vice president, and eventually president of Uniseal.

In 1986, Brake Supply, an auto supply company, was also acquired by GKS, which was founded by Jack Ashby in 1946.  Jack  formed this company over 45 years ago in Evansville, Indiana with just  three people..…turning brake drums, relining shoes and handling parts orders.

Brake Supply became a company customers found they could trust and depend on for their products and services. They began asking Brake Supply to handle other service work for them. As a result, Brake Supply expanded their facilities and broadened their product lines. Brake Supply continues to offer the most complete service and parts facilities for serving mining, construction and industrial equipment users in the country. Jack Ashby’s son, Tom, was president and CEO from 1981 until 2006. In 2006, Kevin Koch, Robert L. Koch’s son, became president and CEO of Brake Supply.

Global Entrance
In 1990, GKS entered their first ever joint venture and global market with Page-Koch Europe Limited, now known as George Koch Sons Europe Limited.   They joined a company in the United Kingdom owned by Page Process Systems Limited, dedicated to designing, building, commissioning and servicing paint finishing lines for automobile and major industrial users throughout Europe.  With the considerations of ecology, George Koch Sons Europe has designed machines with higher standards of environmentally engineered systems.  Robert L. Koch II stated, “the commitment to enter the European market was of great historical significance.  Our founder, my great-grandfather, left Europe to seek new opportunities in the United States.” In 1999, James Muehlbauer was elected president of George Koch Sons and in 2003, Steve Church, James Muehlbauer’s son-in-law, became president of George Koch Sons.  

Koch is the fourth oldest distributor of Carrier equipment and has long been recognized  as a supplier of top-quality HVAC equipment.  In 1991, Koch Air Conditioning, now known as Koch Air LLC, sold their air conditioning installation business to concentrate on distribution.  In 1994, Koch acquired the Carrier distributors in Indianapolis and Louisville owned by Carrier and in 1996 acquired Marco Sales, a Carrier distributor based in St. Louis.  George Koch Sons has expanded to own four Carrier franchises that distribute and service Carrier products in Indiana, Kentucky, Illinois, and Missouri.   In 2003, James Muehlbauer was elected president of Koch Air.

In 1996, Koch Enterprises entered its second joint venture with the David J. Joseph Company, the largest ferrous scrap broker and processor in the US and elected Jim Butkus as president. Koch Enterprises became the full owner of Audubon Metals in 2004. Audubon Metals LLC is located in Henderson, Kentucky. The company processes automobile shredder residue (Zorba) and produces aluminum alloy for the manufacture of die castings.

Audubon Metals purchases Zorba from shredder yards throughout the US. Using a unique process, Audubon removes the aluminum from the Zorba and smelts it into alloys used for die casting. This aluminum is sold in molten form to die casters throughout the midwest including  Gibbs Die Casting.

In 2006, Koch Enterprises, Inc. diversified its portfolio of companies by acquiring South Western Communications (SWC), a technology company that offers building security, communications and control systems for healthcare, educational, commercial, industrial and detention applications. Randy Miller founded the company in 1976 in Evansville and his son-in-law, Todd Lucy, became the president with the transition of ownership.

Today
 In 1999, Koch Enterprises, Inc. was formed as a holding company for George Koch Sons and the other subsidiaries. Koch Enterprises is now being led by the fourth generation, the great-grandson of the founder George, grandson of Louis J., Sr. and son of Robert L. Koch. Since Robert L. Koch II became president in 1980, company sales have increased more than five times.

Innovation and excellence have always been the company’s philosophy.   From George Koch’s example of determination, optimism and faith in our industrial tomorrow, Koch has grown into the diverse corporation it is today. Koch Enterprises has expanded to serve these industries: Automotive Parts Manufacturing, Wholesale Distribution, Metals Recycling, Equipment Design and Construction.

Robert L. Koch II explains that the success of the company can be viewed as an algebra problem.  One side of the equation includes ownership of businesses in different industries.

There are many firsts for Koch Enterprises.  Koch Enterprises bought the first franchise of the Carrier Air Conditioning Company, received the largest sheetmetal contract awarded in the US, and started Santa Claus Land, the first theme park in the US.  Today, Koch Enterprises, Inc. owns eight subsidiaries, has significant operations in five countries, has installed paint systems in 34 countries, and continues to be family operated.  Koch Enterprises has beaten the odds and continues to beat the odds.

Today Koch Enterprises is being supported by the fifth generation. David Koch, son of Robert L. Koch II, is vice president of sales for Koch Air. Kevin Koch, also son of Robert L. Koch II, is president of Brake Supply. Jennifer Slade, daughter of Robert L. Koch II, is the marketing director at Koch Enterprises and her husband, Christopher Slade, is a sales engineer with Koch Air. Brad Muehlbauer, son of James Muehlbauer, is vice president of operations at Koch Air. Glen Muehlbauer, also son of James Muehlbauer, is the human resources director at Koch Air. Katy Gilberg, daughter of James Muehlbauer is the branch operations manager at Koch Air in Indianapolis. Steve Church, son-in-law to James Muehlbauer, is president of George Koch Sons.

Koch Foundation
Part of the Koch Enterprises corporate mission is to improve the quality of life within the communities where we have operations. The Koch Foundation gives community organizations financial grants in the areas of education, arts, health care, and human services for people in need through no fault of their own. The Koch Foundation is a vehicle to help accomplish this mission. The Foundation began in 1945 by George’s three sons: Louis, Albert and George. Today the Foundation grants over $1 million each year to deserving organizations. Special interests over the years have included the first charter school in Indiana called Signature School and the Koch Family Children’s Museum of Evansville (cMoe).

Quality - Value - Innovation - Service

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Koch Enterprises, Inc.
Evansville, IN