Electrada

Electrada Corporation was an American conglomerate established in 1959 during a period when investors and executives were attracted to the idea that a diversified corporate structure could combine unrelated businesses and produce growth through acquisitions. Headquartered in Los Angeles, the company assembled interests in aerospace components, pressure vessels, rubber products, packaging machinery, information processing and other industrial activities. Homer H. Rhoads served as its founding president, while the board included prominent figures such as aircraft manufacturer Donald Wills Douglas Sr. and business executive Justin Whitlock Dart. Their reputations helped give the young company visibility in financial markets, and Electrada became publicly traded over the counter in 1960, only about a year after its formation. One of Electrada's most historically significant units was Advanced Information Systems, a research and data-processing business jointly led by aerospace engineer John A. Postley and information-science scholar Robert M. Hayes. The unit developed GIRLS, an information-retrieval and listing system for IBM 704-era computers, and later produced improved Mark I and Mark II systems for the IBM 1401. Although Electrada management did not fully appreciate the software operation's potential, its later corporate descendants helped produce MARK IV, an important mainframe-era packaged software product. Electrada sold Advanced Information Systems to Hughes Dynamics in 1963, and the business subsequently changed hands again before contributing to the development of the MARK IV software lineage. Electrada also secured visible aerospace work. In 1962 it received contracts connected with cryogenic pressure vessels for NASA's Gemini and Apollo programs and the Saturn launch vehicle. Nevertheless, the conglomerate's broad portfolio proved difficult to manage. In 1963, it reportedly lost approximately $4.3 million on revenue of about $10 million. Security Pacific Bank brought in Dan Burns to stabilize the enterprise. Burns reduced the workforce substantially, withdrew Electrada from much of the electronics business and redirected the company toward pumps, hydraulic equipment and other industrial products. The decisive transformation came through the acquisition of the assets of Sargent Engineering Company from A. J. Industries. The transaction began in 1965 and was completed in March 1966. Sargent Engineering had roots in precision force-control manufacturing and produced valves, actuators and related components for aerospace and industrial uses. In May 1966, Electrada changed its name to Sargent Industries, effectively ending the Electrada identity as a continuing corporate brand. Under the Sargent Industries name, the business became a more focused and profitable manufacturer. It expanded into industrial markets through acquisitions, including the eventual purchase of Gar Wood Industries in 1970. Sargent Industries later became associated with an early Kohlberg Kravis Roberts leveraged-buyout fund, was acquired in 1978 by ORICO, and subsequently adopted the Sargent Industries name again. In 1984, Dover Corporation acquired the company for $68 million. The former Sargent business continued through later ownership and organizational changes, eventually becoming associated with Sargent Controls and Sargent Aerospace & Defense. Its aerospace unit was sold by Dover to RBC Bearings in 2015. Electrada itself therefore survives mainly as the formative corporate predecessor of a specialized aerospace and industrial-controls business, and as an indirect early home of a notable mainframe software lineage.

Electrada Corporation was formed in 1959 as a diversified conglomerate. Its founding strategy reflected the period's enthusiasm for combining unrelated businesses under a single listed company. Homer H. Rhoads became president, and the board included well-known figures from aerospace and consumer-business circles. The company went public over the counter in June 1960, offering 400,000 shares at $12 each. The early portfolio covered missile components, pressure vessels, rubber goods, information handling, data processing and automated packaging. Advanced Information Systems was particularly notable. Led by John A. Postley and Robert M. Hayes, it developed the GIRLS information-retrieval system for Douglas Aircraft's IBM 704 computers. Later Mark I and Mark II versions supported IBM 1401 systems. Electrada sold the subsidiary to Hughes Dynamics in April 1963, and its successor organizations later played a role in the lineage that produced MARK IV, one of the better-known packaged software products of the mainframe era. Electrada also won aerospace contracts for cryogenic pressure vessels associated with Project Gemini, Project Apollo and the Saturn booster. Despite these opportunities, the conglomerate experienced serious financial and managerial difficulties. In 1963, losses were reported at roughly $4.3 million against revenue of approximately $10 million. Security Pacific Bank brought in Dan Burns, who cut the workforce by about 45 percent during his first three months and redirected the company away from electronics toward pumps and hydraulic equipment. The central strategic move was the purchase of Sargent Engineering assets from A. J. Industries. The deal was initiated in 1965 and completed in March 1966. Sargent Engineering descended from a company founded by Sumner Benedict Sargent in 1920 and specialized in precision force-control components, including valves and actuators. Electrada adopted the Sargent Industries name in May 1966. Sargent Industries became a profitable manufacturer serving aerospace and industrial customers. It was listed on the American Stock Exchange and Pacific Stock Exchange and expanded through acquisitions, including Gar Wood Industries, whose purchase was finalized in 1970. The company later became one of the early leveraged-buyout investments associated with Kohlberg Kravis Roberts. In 1978 it was acquired by ORICO, which subsequently restored the Sargent Industries name. Dover Corporation acquired Sargent Industries in 1984. The business continued as a Dover subsidiary under names including Sargent Controls and Sargent Aerospace & Defense, and the Sargent aerospace operation was sold to RBC Bearings in 2015. Electrada is therefore best understood as the short-lived predecessor that created the platform for a durable aerospace-controls business and briefly housed the early development of a significant software product lineage.

• 2015

  Sargent aerospace business is sold to RBC Bearings

  [1]Electradaen.wikipedia.org

  The later Sargent aerospace unit changes ownership when Dover sells it to RBC Bearings.

• 1984

  Dover acquires Sargent Industries

  [1]Electradaen.wikipedia.org

  Dover Corporation purchases Sargent Industries, turning the successor business into a subsidiary.

• 1970

  Gar Wood acquisition finalized

  [1]Electradaen.wikipedia.org

  Sargent Industries completes the revised acquisition of Gar Wood Industries, increasing its industrial exposure.

• 1966

  Sargent Engineering assets acquired

  [1]Electradaen.wikipedia.org

  Electrada completes the purchase of Sargent Engineering assets, moving toward aerospace and industrial force-control products.

• 1966

  Corporate name becomes Sargent Industries

  [1]Electradaen.wikipedia.org

  The Electrada name is replaced by Sargent Industries in May.

• 1963

  Advanced Information Systems is sold

  [1]Electradaen.wikipedia.org

  The data-processing subsidiary is sold to Hughes Dynamics.

• 1963

  Management restructuring

  [1]Electradaen.wikipedia.org

  Dan Burns takes charge after substantial losses and implements major workforce reductions and a strategic shift.

• 1962

  Aerospace pressure-vessel contracts

  [1]Electradaen.wikipedia.org

  Electrada receives contracts for cryogenic pressure vessels connected with Gemini, Apollo and Saturn programs.

• 1960

  Public offering

  [1]Electradaen.wikipedia.org

  Electrada offers 400,000 shares at $12 per share and begins trading over the counter.

• 1960

  Advanced Information Systems begins GIRLS development

  [1]Electradaen.wikipedia.org

  The subsidiary develops an information-retrieval system for IBM 704-era computers used at Douglas Aircraft.

• 1959

  Electrada Corporation is founded

  [1]Electradaen.wikipedia.org

  Homer H. Rhoads establishes Electrada as a diversified American conglomerate.

Originally positioned as a diversified industrial and aerospace conglomerate, Electrada later repositioned itself as a focused manufacturer of hydraulic, mechanical and force-control components through the Sargent Industries business.

• Information-retrieval software · 1960

  GIRLS

  GIRLS, or Generalized Information Retrieval and Listing System, was developed by Advanced Information Systems for IBM 704-era computers. It represented Electrada's early involvement in commercial and governmental data-processing work and was later followed by Mark I and Mark II systems. Although Electrada sold the subsidiary, the software lineage ultimately contributed to the development of MARK IV.

• Information-processing software

  Mark I and Mark II

  These successor systems refined the earlier GIRLS concept for IBM 1401 computers. They added capabilities to support information retrieval and listing tasks and formed part of the technical and organizational lineage that later produced MARK IV, a major packaged mainframe software product.

• Aerospace equipment · 1962

  Cryogenic pressure vessels

  Electrada supplied cryogenic pressure vessels for aerospace applications, including contracts associated with NASA's Gemini and Apollo programs and the Saturn booster. These products placed the company within the high-visibility aerospace supply chain during the 1960s.

• Aerospace and industrial control components · 1966

  Sargent valves and actuators

  Following the Sargent Engineering acquisition, the successor company focused on precision force-control products such as valves, actuators and hydraulic or mechanical components. These products became the foundation of the profitable Sargent Industries business and its later aerospace-controls successors.

• 1966

  Acquire Sargent Engineering assetsM&A

  Background

  Electrada needed a more coherent industrial base after the difficulties of its original conglomerate structure.

  Action taken

  The company acquired Sargent Engineering assets from A. J. Industries in a transaction begun in 1965 and completed in March 1966.

  Aftermath

  The acquisition supplied the business with established precision valves, actuators and force-control expertise and led directly to the Sargent Industries name.

  Source

• 1966

  Adopt the Sargent Industries identityStrategy

  Background

  The acquired Sargent Engineering operation became the strategic center of the restructured company.

  Action taken

  Electrada changed its corporate name to Sargent Industries in May 1966.

  Aftermath

  The Electrada corporate identity disappeared, while the Sargent business continued through later ownership changes.

  Source

• 1963

  Exit from electronics and reduce the workforceStrategy

  Background

  Electrada faced severe losses and criticism that its acquisition-led conglomerate model had not produced effective operating management.

  Action taken

  Dan Burns was installed with support from Security Pacific Bank, reduced the workforce by approximately 45 percent and shifted emphasis from electronics toward pumps and hydraulic equipment.

  Aftermath

  The restructuring prepared the company for its later transformation into a focused aerospace and industrial-components manufacturer.

  Reported loss and revenue. Loss of approximately $4.3 million (1963)

  Source

1. 1Electradaen.wikipedia.org