Larsen Manufacturing owners learn from family leaders

Dave and Denis Larsen, fraternal twin brothers who co-founded Larsen Manufacturing in Mundelein, know how a family business can succeed, be acquired, and even rise up again in a different form.

That's what they faced since their grandfather Leonard Larsen Sr. and a partner founded two companies that later led the twins to create their own metal stamping and fabrication business.

"We all have our personal likes, but when it comes down to it, we all know we have a job to do and do it right," said Dave Larsen, 48. "It's really been a rebirth of a legacy."

Now, Larsen takes the history and knowledge behind those predecessor companies, uses the latest technologies and marks 15 years in business. Larsen, which was recently honored in the area of innovation in the Daily Herald Business Ledger's Entrepreneurial Excellence Award program, could be 15 years old or 70 years old, depending on how you look at it.

The roots of Larsen Manufacturing reach back to 1946 when grandfather Leonard Larsen Sr. and a partner founded Algonquin Tool and Die Co. on Cicero Avenue in Chicago and it continued until 1952. Algonquin made televisions for Motorola, Zenith and others. In 1955, Leonard then worked with a partner to start Electro Metal Products in Skokie until it was acquired in 1998.

Dave Larsen was about 10 years old when he started going to his grandfather's plant where his father, Lenny Larsen, was president.

"I was just fascinated by all the noisy machines and all the different parts they were making," Dave recalled.

He was even given the chance to ride along with one of the truck drivers. "Yes, that was pretty cool when you're 10 years old," Dave said.

Dave wanted to go into business since he was in high school. He took some vocational classes in the 1980s. As a junior at Prospect High School, Dave took a work program with a plastic mold maker. That led to a job in the plastics industry for the next 15 years.

"I was the black sheep in the family," Dave joked. "But my grandfather said 'I'm proud of you doing your own thing.' So I stuck with plastics to about the 1990s."

Still, when Electro needed help during a strike, Dave helped.

In the meantime, brothers Mike Larsen, 52, of Mount Prospect and Denis invested in another company called Lightning Tool and Design in Elk Grove Village in 1993. They stayed just three years and left. Denis returned to Electro.

In 1995, Electro was acquired by a private equity firm, which then resold the company in 1998.

Dave and Denis were caught up on the reorganization and had to help dissolve the family business.

"That was the hardest thing we ever had to do," Dave said.

The company had moved from Skokie to Bolingbrook and layoffs were ordered.

"The whole process on deciding who stays and who goes was tough," Dave said. "We're talking about the third generation of families who came to work for my dad's company. Can you image how heart breaking that was?"

Dave and Denis left and then founded Larsen Manufacturing in Mundelein in 1999. They also hired some employees from Electro. Dave said he focuses more on strategy and the vision of the company, while Denis is hands on with operations. Brother Mike also joined them in 2008 and is business unit director of tooling and stamping. The company serves the automotive, aerospace, consumer electronics and other industries. Larsen Manufacturing had $3 million in revenue that first year. Revenue this year is projected to be about $40 million, Dave Larsen said.

By 2001, Larsen Manufacturing sent Denis to El Paso, Texas, to open operations for consumer electronics products, including cable boxes and information screens for the auto industry.

Their father, Lenny, now 75, still keeps his hand in the business and lives with his wife Sue in Lincolnshire part of the year. At other times during the year, they live in Florida.

Denis continues to manage the El Paso operations and also lives in Vernon Hills with his wife, Veronica, of 6 years. Denis has two stepchildren and two children with Veronica.

During these changes in the company, Dave and his wife Melissa, now married for 23 years, were facing their own personal turmoil.

In 2007, their daughter Kristen, then 14, passed away from Cystic Fibrosis. About 4 years later, their son Brian, then 17, also died of the same disease.

"Losing those two children was a tragedy for us and for our whole family," Dave said. "And without them all, it would have been difficult to get through."

The couple has other children, Lea, 14, and Ian, 3.

"They are true blessings to us," he said. "And there's no way I could have done it without the dedication of all of my employees and my wife, Melissa,"

And throughout the changes in businesses, ownership and the industry, Dave Larsen still believes executives need faith to overcome hard times in business and in life.

"You have to have a little faith and keep people you need throughout your personal and professional life and have a little trust," Dave said. "If there's no trust in others, it makes it difficult to succeed."