Search
 

KeySpan in Court Over Purchase of New Jersey Construction Firm

NEW YORK CITY-Utility giant KeySpan and the former owner of a family-run contracting firm it bought last year are locking horns over the contractor's claim that he has yet to receive the bulk of the agreed-upon purchase price.

By Glen Thompson | Updated on August 13, 2001

NEW YORK CITY-In a court case with more twists and turns than a John Grisham novel, utility monolith KeySpan Corp. is duking it out with the former owners of what is now Roy Kay KeySpan Inc.

Brooklyn-based KeySpan acquired 30-year-old Roy Kay Inc. and its subsidiaries, Roy Kay Mechanical and Roy Kay Electric, in January 2000 for roughly $30 million. According to founder Roy Kay, the complex deal involved up-front cash, a series of installment payments and a performance-based earn-out.

According to court papers filed by Roy Kay and his son David Kay in May, KeySpan intentionally misled them with regard to the terms of a pending merger between KeySpan and another utility company, Eastern Enterprises. The Kays’ lawsuit states KeySpan knew prior to purchasing Roy Kay Inc. that upon completion of the merger Keyspan “would be subject to restrictions on non-energy related business, including general contracting.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.