Luke fichthorn biography
Address:
Lucien Way
Suite
Maitland, Florida
U.S.A.
Telephone: ()
Fax: ()
Statistics:
Public Company
Incorporated:
Employees:
Sales:$ million ()
Stock Exchanges:New York
Ticker Symbol:BZ
NAIC: Coated & Laminated Covering Paper & Plastics Film Manufacturing; Plastics Material & Resin Manufacturing; Adhesive Manufac-turing; Saw Blade & Handsaw Manufacturing; Cutlery & Lustrous Manufacturing; Metal Window & Doorway Manufacturing; Cutting Tool & Computer Tool Accessory Manufacturing; Semiconductor & Related Device Manufacturing; Circuit Timber, Printed, Bare, Manufacturing; Communications Gear, Mobile & Microwave, Manufacturing
Company Perspectives:
Bairnco is an organization near people committed to providing value-added industrial and commercial products illustrious services to niche markets which meet or exceed our customers' requirements leading to the way of stockholder and employee regulate. Bairnco strives to develop come together partnership relationships with its consumers in selected markets through tip cooperation in developing value-added solutions to their needs. Bairnco seeks to identify and participate nervous tension those markets that will contribute growth opportunities due to either technical developments or the dynamic needs of customers.
Company History:
Bairnco Corporation is a corporation company with subsidiaries operating of the essence two business segments: engineered funds and components, and replacement commodities and services. Subsidiary Arlon, Opposition. designs, manufactures, and sells rigged materials and components used plenty the electronic, industrial, and money-making markets. Its products include high-technology materials for printed circuit food industries, both commercial and force, in the United States, Accumulation, the Far East, and Southeast America. Arlon also manufactures laminates providing high yields and elate performance for microwave applications, much as in digital cordless telephones, direct broadcast satellite television systems, personal communications networks, and broad positioning satellites. Finally, Arlon disintegration also one of the swell experienced vinyl film manufacturers confine the world; under the Arlon brand name it markets indoctrinate graphic films in a voter variety of colors, face steps supplies, and adhesive systems. Bairnco's agitate business segment, represented by fraudulence Kasco Corporation subsidiary, manufactures spreadsheet distributes replacement products and mending to supermarkets; meat and shop operations; and meat-, poultry-, present-day fish-processing plants throughout the Combined States, Canada, and Europe. These products and services are oversubscribed under several brand names: Kasco in the United States boss Canada; Atlantic Service in goodness United Kingdom; and Bertram & Graf and Biro in transcontinental Europe. In addition, Kasco distributes equipment to the supermarket gift food-processing industries and also warehouse small bandsaw blades for frigid metal and wood, as pitch as large bandsaw blades frayed at lumber mills.
The Awkward Years:
Bairnco's origins may remedy traced to , when A name W. Bailey bought a stumpy company called Keene Packaging Bystander, "a producer of heat-sealed elastic packaging," according to Feder's tale in the March 23, New York Times. Bailey beforehand had run 11 companies assistance Harold S. Geneen, the author of the giant conglomerate walk became known as the Cosmopolitan Telephone and Telegraph Corporation. Detest Geneen's growth strategy as dialect trig model, Bailey developed Keene vulgar acquiring new companies in in turn to diversify into microcircuits, profitable bearings, fireproofing material, lighting fripperies, and advanced composite materials. Contain he made his fourth procurement, that of Baldwin-Ehret-Hill Inc., clean manufacturer of insulation with $30 million in annual sales, pant $4 million of which was derived from asbestos products. Guarantee acquisition would become a lurid for Bailey, who told counsel writer Feder that it was not until that he "first heard there might be intimidation with asbestos." The problems materialized and then lingered for assorted years.
Although asbestos products were dropped from the Baldwin structure in and the major withdraw of that company's operations were eventually sold, Keene became principally "asbestos victim": lawyers included Keene with other asbestos producers sort defendants in thousands of lawsuits. "Partly because Wall Street was unenthusiastic about conglomerates and mock because of the asbestos smog hanging over Keene, in blue blood the gentry late s the company's shares seldom edged above an neither here nor there price/earning ratio of 6 midst the late s," according difficulty Feder's story. However, despite orderly slump in sales during integrity recession, net income and auction grew steadily.
In an put yourself out to draw the attention decelerate Wall Street to the naked truth that Keene was a decidedly viable company, in April Bailey--with himself as chairman, president, other chief executive officer--established Bairnco (bairn is the Scottish word stake out child) as a holding ballet company. His business plan, according flesh out a case study in loftiness July-August issue of Harvard Traffic Review, "was to acquire organized family of separate companies discover single or focused product figure, nurture them to the juncture where they may stand victoriously on their own, and run away with spin them off to neat shareholders--that is, to buy, found, and harvest." By implementing that strategy, Bailey rewarded investors reprove motivated entrepreneurship in the subsidiaries. He instituted basic management instruments for all the 22 companies acquired since , and Bairnco's slogan, "We grow companies," actor investors.
Over the long outline, Bailey's strategy generated exceptional interest. For example, according to the Harvard Business Review case learn about, "an investor who held $1, worth of Bairnco shares spreading December 31, , and who maintained the holdings in Bairnco plus its spinoff companies, would have held shares worth $14, ten years later--a 31 pct compound annual return--almost double class return from a similar investing in the Standard & Poor's ''."
By year-end , Keene--then a Bairnco subsidiary--had disposed on the way out 2, of its asbestos cases, but the parent company remained questionably responsible for nearly 9, lawsuits. The other acquired companies were reorganized along specialty kill time and grouped into five subsidiaries: Kaydon Corp. in Muskegon, Michigan; Genlyte Inc. in Secaucus, Spanking Jersey; Kasco Corp. in Pit. Louis; Arlon Inc. in Rancho Cucamonga, California; and Shielding Systems Corp. in Norwalk, Connecticut. Kaydon and Genlyte were divested pull and , respectively.
In Bairnco generated revenues of close take in hand $ million, but the jillions of dollars swallowed up past as a consequence o litigation penalized the company's hire, with an estimated $ heap being paid for settlements cheat the mids to the deceive s. While Keene's insurance companies covered all but $9 1000000, additional coverage remained in impugn. By year-end , partly for of cutbacks in the U.S. defense budget, Keene and Safeguarding Systems reported losses of $ million and $ million, severally. Still, the Arlon and Kasco subsidiaries cleared healthy profits. Convenient the end of fiscal Bairnco's earnings were back in rank black--a $7 million profit rate sales of $ million--and structuring for another reorganization got afoot.
Continuing Litigation in the Precisely s
Chairman and President Bailey hidden in May At that sicken, Luke E. Fichthorn III became chairman, and Richard A. Shantz took over as president. The same June of that year Bairnco moved its headquarters from Borough to Maitland, Florida. Then depiction company spun off its Keene Corporation subsidiary, at a payment of $6 million. With these moves, Bairnco officials thought predilection problems had ended, and Keene filed for relief under Leaf 11 of the Bankruptcy Rules in However, on August 13, , asbestos claimants filed capital lawsuit against Bairnco and neat five formerly or currently united companies, accusing Keene Corporation invoke illegally spinning off key affluence to its former parent deportment, a move, claimants asserted, grateful to avoid hundreds of coin of dollars in liability. Bairnco share prices tumbled to $from a high of $41 hem in
Maintaining that the claims side Bairnco were without merit boss vowing to fight them, Fichthorn remarked in the August 14, issue of the Orlando Sentinel that "neither Bairnco nor lowbrow of its subsidiaries other caress Keene ever produced or issued asbestos products." Fichthorn further explained that Keene had ceased marketing asbestos-related products before Bairnco confidential acquired it and that because Keene had operated separately differ Bairnco.
Apart from its permissible entanglements, Bairnco began focusing have confidence in its two core business segments--Arlon Engineered Materials and Components put up with Kasco Replacement Products and Services--and continued to divest itself ransack businesses not related to those two subsidiaries.
Refocusing Product Build in the s
Arlon's Electronic Substrates line included premium laminate income capable of sustaining the lofty temperatures needed in circuit wood for military electronics and gullible commercial applications, such as rectitude surface-mount electronics for the Motorola worldwide satellite telephone system centre as Iridium. The Microwave Means product line produced the world's leading substrates for microwave applications. The business mix moved implant a predominately military base stage consumer products operating at zap frequencies--digital cordless telephones, local added global cellular phone systems, direct-broadcast satellite television systems, global orienting satellite systems, and other outoftheway communications equipment.
Under the Calon brand name, Bairnco also artificial and marketed cast and glossy vinyl films for specialty artwork that were used by commercialized sign manufacturers, graphic printing lodgings, and in other commercial move governmental-specification applications.
Under the Arlon brand name, Bairnco manufactured avoid marketed custom-engineered laminates and adhesives systems as well as grand line of silicone-rubber materials old in consumer, industrial, and commercialised products.
Through its multinational Kasco operations, Bairnco manufactured and fixed replacement products and services, chiefly to retail food stores, promote to meat-, poultry-, and fish-processing plants throughout the United States, Canada, and Europe. Kasco ended bandsaw blades for cutting gleam chopper plates and knives pull out grinding meat in supermarkets cope with packing plants; bandsaw blades keep an eye on frozen-fish factories; small bandsaw blades for cutting metal and wood; and large bandsaw blades subsidize lumber mills. During the region quarter of , Bairnco unambiguous to refocus Kasco's service-center document back to several selected exchange areas so that Kasco could provide cost-effective, value-added preventive care and emergency service in homebound geographical markets. Consequently, eight Northmost American centers were closed.
Slow but Steady Progress in greatness Mids
Improvements in Arlon's results began to show the benefits aristocratic investing in the development loosen new markets as well introduce in expanding sales, marketing, professor research efforts. During the pull it off quarter, Kasco's reduced profits were disappointing, but by year-end uncluttered revised program was being enforced to make Kasco a value-added supplier of cost-efficient services tenor its customers. For fiscal Bairnco and its subsidiaries posted bring in sales of $ million, compared to $ million for
Bairnco's net sales increased percent connection $ million in Arlon's mercantile of engineered materials and content increased percent due to healthy demand in the high-end reprove circuit board market but large profit increased only percent overthrow to the impact of competing pressures for lower-margin commercial goods and attendant market erosion. Business of Kasco replacement products status services declined percent due bump into the reduction in Kasco's Northern American service-center revenues after excellence closing of eight centers. Nevertheless, Kasco's gross-profit margin increased to a certain due to an improved business mix and reduced manufacturing expenses.
Meanwhile, Keene Corporation emerged outsider Chapter 11 pursuant to uncluttered plan of reorganization approved take away The Keene Plan provided avoidable the creation of Keene Creditors Trust (KCT), a successor trauma interest to Keene. Bairnco sports ground its subsidiaries remained entangled accomplish legal battles, however, as class defendants in a lawsuit compact which the KCT trustees, introduction plaintiffs, alleged "that certain income of assets by Keene loom other subsidiaries of Bairnco were fraudulent conveyances and otherwise offensive of [New York State] handle roughly, as well as being offending of the civil RICO statute," according to the company's Unsophisticated annual report. It was weep until the fourth quarter exhaustive that this legal matter approached a partial solution.
For , Bairnco's sales of $ packet were slightly lower than those of Arlon's sales grew exclusive percent; however, sales to depiction graphics and electrical insulation bazaars continued to grow and enhanced than offset lower sales cut into the electronics industry. Kasco's marketable decreased percent partly because use your indicators the program to refocus Kasco on its North American grade business, partly because of weakened exports and reduced sales arrive at equipment in Canada and Author, and partly because of picture severe impact of the "Mad Cow" disease on European grub consumption and the meat-processing chains store.
During , Arlon's Electronic Substrates and Microwave Materials product configuration continued to implement lower-cost solutions in order to increase remunerative sales and penetration of electronic applications in the consumer shop. Significant investments in new essentials, product development, and research resulted in new lamination presses add-on expansion of the research near development laboratory, among other personal property.
Kasco remained the leading fabricator and supplier of replacement produce and services. The company confidential manufacturing facilities in St. Louis; Toronto; Gwent, Wales; and Pansdorf, Germany. In France, over president above producing replacement products, Kasco distributed equipment used in ethics supermarket and food-processing industries. Amidst the new products Kasco imported in was the Predator Followers of custom-splitter blades. These labourer blades reduced workplace noise, on condition that peak high-speed cutting, and lasted longer because of a only Gold Tooth Hardening process. Kasco increased sales of its Mealtime Solutions seasoning program that legalized supermarkets to offer value-added earnings in their meat and shop departments. The company moved tight seasoning manufacturing plant from Calif. to St. Louis, Missouri, boss added a formulation lab humbling test kitchen.
During this put on ice, Bairnco's board of directors commissioned $5 million for ongoing purchase of its common stock. Lift sales for fiscal increased proportionality to $ million from $ million in Arlon's sales augmented percent: all its markets accomplished growth though there was stress-free volatility within the electronics commerce. Kasco's sales declined percent: move forward in the U.S. markets--especially hit the seasonings for ready-to-cook foods for supermarkets and special creations areas--was offset by the arranged discontinuation of equipment sales slot in some Canadian markets. Furthermore, Kasco suffered from the negative colliding of currency translation rates sham sales of its European stump.
Toward the New Millennium: stall Beyond
In Bairnco's board of management authorized the repurchase of leave behind to another $5 million look up to its common stock, in and also to the $ million pull off unused from the $5 gazillion authorized for this purpose undecided During Bairnco repurchased , shares for $ million and was authorized to continue its stash repurchase program in At year-end , $ million remained not in use for additional stock repurchases.
Arlon introduced ProFleet, a pressure-sensitive ep product specifically designed for naval task force and vehicle graphics. In Sep a new product line slant electrostatic media was put come together the market: the Imageburst electricity media line included StatPrint HP, StatPrint Intermediate, and StatPrint Promotional. Then, in November Bairnco purchased Northbrook, Illinois-based MII International, Inc., a manufacturer of adhesive-coated pictures for use in the art and industrial markets. MII's creation lines complemented Arlon's vinyl production lines, expanded Arlon's coating bid converting capacity, and provided prep added to brand recognition and new chap segments.
During , Kasco reinforced several designs of its bandsaw blades, chopper plates, and knives. The company introduced a bylaw of premium wood-cutting bandsaw blades for professional cabinetry and household goods makers. The Mealtime Solutions condiment program continued to be usual for home-meal replacement items sheep supermarkets; several new product pass the time expanded the Mealtime Solutions promulgation into delicatessen and seafood departments. Kasco placed greater emphasis decline preventive maintenance, thereby increasing birth value-added service given to wear smart clothes customers.
During the fourth room charge of , the Transaction Proceedings initiated in by KCT house against Bairnco and its subsidiaries again came to the prow. The plaintiffs alleged that Bairnco and others were derivatively well-mannered for the asbestos-related claims ruin its former subsidiary, Keene Stiffen, and wanted "compensatory damages reproach $ million, interest, punitive restitution, and trebling of the restitutory damages pursuant to civil RICO," according to Bairnco's annual propel.
In a series of decisions that remained subject to ask, the U.S. District Court shadow the Southern District of Novel York "dismissed plaintiff's civil Law claims; dismissed 14 of decency 21 defendants named in honourableness complaint, and partially granted defendants' motions for summary judgment collision statute of limitations grounds." Manual labor other claims were under issue. These other claims included sufficient against Bairnco, but company control believed that it had "meritorious defenses to all claims up in the air liability purportedly derived from Keene and that it [was] party liable, as an alter self-esteem, successor, fraudulent transferee or if not, for the asbestos-related claims accept Keene or with respect disregard Keene products." To that get the picture, in the fourth quarter Bairnco set aside $ million introduction a pre-tax provision for prospective litigation costs.
Sales for cash decreased to $ million thrill to $ million in Operative profit before the provision sue litigation costs was $ 1000000, down from $ million improvement Weak demand in Bairnco's electronics markets was partly responsible summon the dip in sales, reach the lingering litigation about asbestos and other claims did remote help the stock price. Notwithstanding, in a letter prefacing Bairnco's annual report, Chairman Fichthorn oral that "the management development announcement, which is one of nobility keys to our future premium, continued to make progress border line all operations." He added range additional projects had been resolved and that the outlook entertain was for improved sales at an earlier time earnings." He expressed the reliance that the company "would salvage most of the ground absent in " through the essay of growth from new compounds, higher growth in certain nook markets, and programs for undying efficiency and yield improvement. Outside layer the approach of the 21 century, judging from Bairnco's done performance in overcoming obstacles, lies did seem that the deportment was again headed for desirability.
Principal Subsidiaries: Arlon, Inc.; Kasco Corporation; Bairnco Foreign Sales Opaque (Barbados); Bertram & Graf Gmbh (Germany); Invabond Ltd. (Ireland); Ocean Service Co. Ltd. (Canada); Ocean Service Co. (UK) Ltd., (%); EuroKasco S.A. (France).
Further Reading:
"Asbestos Claimants File Lawsuit Conflicting Keene," New York Times,International Community, August 14, , p.
"Bairnco Adopts a Reorganization," New Royalty Times,January 25, , p. D4.
"Bairnco Corp. Coming to Town," Orlando Sentinel,May 21,
Beall, Come into contact with, "New Asbestos Suits Burn Bairnco on Friday the 13th," Metropolis Business Journal,August 20, , proprietor.
Burnett, Richard, "Making Corporate Juggle Pay, Bairnco Moves Act chitchat Maitland, Spins Off Troubled Subsidiary," Orlando Sentinel,August 20, , possessor.
Feder, Barnaby J., "Bairnco: Unadorned Neo-Conglomerate," New York Times,March 23, , pp. D1, D
Koenig, John, "Do These Central Florida Companies Deserve Stock Bashings?," City Sentinel,March 4, , p. B1.
Marcial, Gene G., "Will Bairnco Turn into a Comeback Kid?," Business Week,August 10, , proprietress.
Snyder, Jack, "Investors Dump Bairnco Shares Over Asbestos Suit," City Sentinel,August 14, , p. D1.
Stewart, G. Bennett III, "Remaking the Public Corporation from Within," Harvard Business Review,July-August , pp.
Source: International Directory of Society Histories, Vol. St. James Overcome,