OBSERVER Photo by Gregory Bacon Universal Tool Company in Gerry is being purchased by LINC Product and Services. LINC officials say if the purchase doesn’t happen, UTC would likely file for bankruptcy.

A machine shop in Gerry will be getting a new owner.

During the Chautauqua County Industrial Development Agency meeting, board members approved two loans totaling $225,000 for LINC Product and Services of Frewsburg to assist with the acquisition of Universal Tool Company, located at 4529 Route 60 in Gerry.

LINC is a small, Native American-owned business and is certified as a New York State Minority and/or Women-owned Business Enterprise. It specializes in business development/technical sales; supply services for machine tools, tooling, and manufacturing equipment; supply services for raw materials; and subcontract services for manufacturing and construction.

LINC is in the process of purchasing the assets of UTC, a full-service production computer numerical control (CNC) machining business. It is focused on injection mold tooling, tool and die, and contract manufacturing services.

According to Rosemary Strandburg with the county IDA, UTC currently has three employees. She said LINC’s intention is to keep all three employees once they complete the purchase. They also hope to hire two more within 30 days of the purchase and 20 employees over the next five years.

Jason Ruhlman with LINC said UTC approached him about a year and a half ago for some help. “More urgently, let’s say the end of last year – November, December – the closing was imminent. They were ready to liquidate and close the doors,” he said.

Ruhlman said they decided to step in to make sure the company can continue. The deal will allow them to buy them out of debt so they can walk away without having to go bankrupt.

The intent, he explained, is to keep their main existing customer, bring back some departed customers and blend in LINC’s customers.

Ruhlman believes they can turn UTC into a $4 million to $5 million business. “(We’re) very confident that the assets that are there without any additional immediate needs will serve the purpose to get UTC back on its feet,” he said.

IDA Board Chairman Gary Henry said the IDA is glad to be able to help assist. “It’s loans like this to these companies that keep these businesses in Chautauqua County. It creates more jobs than we currently have. It’s critical to our county,” he said.