- Email: [email protected]
Where have they gone?
EDITORIAL
MOAL Finishing
,.~~
May 2000
Where Have They Gone?
Volume 98/Number 5 Editor
Michael Murphy [email protected] Auodetl Editor
Patti Ann Frost [email protected] Orgl nlc COltl ngs Editor
Ron Jo seph [email protected]
T
he names are familiar-Allied-Kelite, Amchem, Binks, Canning, Gumm, Hansen, Harshaw, Herberts-O'Brien, M&T Chemical, Munning, Novamax, Parker, Pratt and Lambert, Sel-Rex, Van Winkle, etc. All were suppliers to the finishing industry. Some remain as tradenames but others are gone forever. What's become of them? The answer is simple-mergers and acquisitions. Mergers and acquisitions have always been a part of the business scene, but merger mania has taken over. The newspapers are full of reports on the latest record buy-out. It's the Super Bowl of the business world. Who has enough equity to outspend everyone else? Finishing suppliers are not the only ones facing mergers and buyouts. The suppliers to the suppliers-manufacturers of basic chemicals and metals-are also the subject of mergers. Witness the consolidation in the copper industry and large acquisitions such as the purchase of Union Carbide by Dow, the merger of Mobil and Exxon, and the acquisition of Elf by Total Fina. Not all mergers, however, are among corporate giants. Small and medium-sized firms, such as plating job shops, are also part of the action. An example is Lombard Technologies, which joined together Alexandria Metal Finishers of Lorton, Va., All Metals Processing of Orange County, Calif., Gene's Plating Works of Los Angeles, Howard Plating Industries of Madison Heights, Mich., Mid-Atlantic Finishing of Capitol Heights, Md., and Whyco Technologies of Thomaston, Conn., to form a nationwide finishing company. Why merge? The reasons are several-increase market share, improve financial stability, diversification, improved productivity, etc. In smaller companies an owner may wish to retire, thus leading to an acquisition. The downside is that cuts in employment almost always follow a merger-50 to 80% attrition is not uncommon. In fact this is often the reason for the acquisition-to cut overall costs. Do mergers work? Mergers have been likened to marriages, some last a lifetime and others are "troubled."
Editor
Publisher
Eugene B. Nad el [email protected] Art Dlrect orl Prod uct io n Mlnlglr
Su san Canalize-Baruch s.canalizo®elsevier.com Advertising Slles Mlnlglr
William P. Dey [email protected] Advertising Slles Mlnlgar
Lawrence A. Post l.post@elsevier .com Circulation Manager
Carole Ireland qcs [email protected] Editorial!Advertising Mltal Finishing
660 White Plains Rd. Ta rrytow n, N.Y. 10591 9141333-2500 FAX: 9141333-2570 Metal Finishing (lSSN 0026·0576 ) is pub . Iished mont h ly, with special iss ues in J a nua ry and May (fourt een times a year) by El s~vie r Scien ce Inc .• 655 Ave nu e of the Americas, New York. N.Y. 10010 . Metal Fin ishing is free to qu alified metal finishers in th e U.S. For su pplie rs , consultants and others related to the field the subscri pt ion rat e per yea r. including a copy of th e "Meta l Fin ishing Guid ebook and Directory Issu e" and th e "Orga nic Finish ing Guid ebook and Di rect ory Issue" is $60 .00 in U.S.• $84 .00 in Ca na da and Mexico . Pri ces include posta ge and a re subject ta ch ange without not ice. For othe r count ries or for additional infor mation contact Met al Finishing Custome r Service, P.O. Box 141, Congers, N.Y. 10920 ·01 41. Toll free (for U.S . custo mers ): 1-800-765-7514 . Ou tsi de th e U.S. call 914-267 -3490 . Fax 9 14-267-3478. E· ma il: ~l etnl@'C ambeywest .com . Si ngle copies of Metal Finish ing (exce pt th e Gu idebook and Director y iss ues ): $5.00 in th e U.S. Peri odical s post age paid at Nl'W York . N.Y. a nd at addi tiona l mail ing offices . C han ge of Addr e s s: Postmaster- send add ress changes to Metal Fi ni sh ing , 1'.0 . Box 141 . Congers. N.Y. 10920·014 1. TolI·fre e (for U.S . custome rs ) 1-800 ·765·751 4. Ou tsi de of the U.S. ca ll 9 14·267·349 0. Fax: 9 14-267 347 8. E·mail : Met [email protected] mbywest .com . 45 days advance not ice requ ir ed , Please incl ude both new a nd old add ress. Copyright h)' Elsevier Scie nce Inc. Permi ssion for reprin tin g selected portions will usu ally he gra nt ed on writt en a pplica t ion to the publ iah cr. Art icles on pert inent subjects a re invi ted . For furth er inform at ion. contac t the Editor at 660 Wh ite Pla ins Hd ., Tarrytown . N.Y. 1059 1. m.lIlurph)-@'cIKevier .com. Publ ica tion does not necessarily im ply endo rse me nt . M icrofilm Ed it io n: Availa ble from University Microfilm s . 300 N. Zeeb Rd.• Ann Arbor . Mich . 481 0:1. Our pub lica ti on number is 342 180.
MOAL Finishing
,.~~
May 2000
Where Have They Gone?
Volume 98/Number 5 Editor
Michael Murphy [email protected] Auodetl Editor
Patti Ann Frost [email protected] Orgl nlc COltl ngs Editor
Ron Jo seph [email protected]
T
he names are familiar-Allied-Kelite, Amchem, Binks, Canning, Gumm, Hansen, Harshaw, Herberts-O'Brien, M&T Chemical, Munning, Novamax, Parker, Pratt and Lambert, Sel-Rex, Van Winkle, etc. All were suppliers to the finishing industry. Some remain as tradenames but others are gone forever. What's become of them? The answer is simple-mergers and acquisitions. Mergers and acquisitions have always been a part of the business scene, but merger mania has taken over. The newspapers are full of reports on the latest record buy-out. It's the Super Bowl of the business world. Who has enough equity to outspend everyone else? Finishing suppliers are not the only ones facing mergers and buyouts. The suppliers to the suppliers-manufacturers of basic chemicals and metals-are also the subject of mergers. Witness the consolidation in the copper industry and large acquisitions such as the purchase of Union Carbide by Dow, the merger of Mobil and Exxon, and the acquisition of Elf by Total Fina. Not all mergers, however, are among corporate giants. Small and medium-sized firms, such as plating job shops, are also part of the action. An example is Lombard Technologies, which joined together Alexandria Metal Finishers of Lorton, Va., All Metals Processing of Orange County, Calif., Gene's Plating Works of Los Angeles, Howard Plating Industries of Madison Heights, Mich., Mid-Atlantic Finishing of Capitol Heights, Md., and Whyco Technologies of Thomaston, Conn., to form a nationwide finishing company. Why merge? The reasons are several-increase market share, improve financial stability, diversification, improved productivity, etc. In smaller companies an owner may wish to retire, thus leading to an acquisition. The downside is that cuts in employment almost always follow a merger-50 to 80% attrition is not uncommon. In fact this is often the reason for the acquisition-to cut overall costs. Do mergers work? Mergers have been likened to marriages, some last a lifetime and others are "troubled."
Editor
Publisher
Eugene B. Nad el [email protected] Art Dlrect orl Prod uct io n Mlnlglr
Su san Canalize-Baruch s.canalizo®elsevier.com Advertising Slles Mlnlglr
William P. Dey [email protected] Advertising Slles Mlnlgar
Lawrence A. Post l.post@elsevier .com Circulation Manager
Carole Ireland qcs [email protected] Editorial!Advertising Mltal Finishing
660 White Plains Rd. Ta rrytow n, N.Y. 10591 9141333-2500 FAX: 9141333-2570 Metal Finishing (lSSN 0026·0576 ) is pub . Iished mont h ly, with special iss ues in J a nua ry and May (fourt een times a year) by El s~vie r Scien ce Inc .• 655 Ave nu e of the Americas, New York. N.Y. 10010 . Metal Fin ishing is free to qu alified metal finishers in th e U.S. For su pplie rs , consultants and others related to the field the subscri pt ion rat e per yea r. including a copy of th e "Meta l Fin ishing Guid ebook and Directory Issu e" and th e "Orga nic Finish ing Guid ebook and Di rect ory Issue" is $60 .00 in U.S.• $84 .00 in Ca na da and Mexico . Pri ces include posta ge and a re subject ta ch ange without not ice. For othe r count ries or for additional infor mation contact Met al Finishing Custome r Service, P.O. Box 141, Congers, N.Y. 10920 ·01 41. Toll free (for U.S . custo mers ): 1-800-765-7514 . Ou tsi de th e U.S. call 914-267 -3490 . Fax 9 14-267-3478. E· ma il: ~l etnl@'C ambeywest .com . Si ngle copies of Metal Finish ing (exce pt th e Gu idebook and Director y iss ues ): $5.00 in th e U.S. Peri odical s post age paid at Nl'W York . N.Y. a nd at addi tiona l mail ing offices . C han ge of Addr e s s: Postmaster- send add ress changes to Metal Fi ni sh ing , 1'.0 . Box 141 . Congers. N.Y. 10920·014 1. TolI·fre e (for U.S . custome rs ) 1-800 ·765·751 4. Ou tsi de of the U.S. ca ll 9 14·267·349 0. Fax: 9 14-267 347 8. E·mail : Met [email protected] mbywest .com . 45 days advance not ice requ ir ed , Please incl ude both new a nd old add ress. Copyright h)' Elsevier Scie nce Inc. Permi ssion for reprin tin g selected portions will usu ally he gra nt ed on writt en a pplica t ion to the publ iah cr. Art icles on pert inent subjects a re invi ted . For furth er inform at ion. contac t the Editor at 660 Wh ite Pla ins Hd ., Tarrytown . N.Y. 1059 1. m.lIlurph)-@'cIKevier .com. Publ ica tion does not necessarily im ply endo rse me nt . M icrofilm Ed it io n: Availa ble from University Microfilm s . 300 N. Zeeb Rd.• Ann Arbor . Mich . 481 0:1. Our pub lica ti on number is 342 180.