Global Fastener News

1979 FIN – AVC to Increase Raybestos-Manhattan Holdings

June 02
00:00 2010

October 10, 1979 FIN – AVC Corp. informed the Securities & Exchange Commission that it intends to increase its holdings of Raybestos-Manhattan Inc.

In March 1977, AVC acquired a 7.3% equity interest in Raybestos-Manhattan Inc. from William S. Simpson, board chairman of R-M and certain other family interests.

At the same time AVC acquired an option to purchase an additional 14.5% of R-M stock at $30.99 per share until September 8, 1981.

In April 1977, Frank H. Reichel Jr. and Robert R. Salyard, chairman of the board and president of AVC respectively, were elected to the R-M board of directors.

AVC said it plans to purchase as much as $1 million of Raybestos stock, which would give it an additional 1.5% interest. When the stock that AVC already owns is added to the proposed purchase and existing options, AVC could increase its holding in R-M to 23% of the common stock.

Radnor, Pa.-based AVC, an outgrowth of the former American Viscose Corp., got into the fastener business with the purchase on October 10, 1974, of all the stock of Modulus Corp., a Chagrin Falls, Ohio fastener manufacturer.
Modulus was formed in September 1968 out of three fastener plants and four warehouses of the Screw & Bolt Corp. of America.
The Modulus Corp. has fastener manufacturing plants in Mount Pleasant, Pa.; Gary, Indiana; Northfield, Ohio; and Moline, Illinois.
Modulus’ Interlock division consists of five warehouse fastener and distribution facilities in Charlotte and Greensboro, N.C.; Atlanta, GA.; Richmond, Va.; and Bristol, Tenn.
The Precision Cold Formed Products group of Plymouth, Mich., produces cold extruded parts.
Besides being in fasteners and metal forming (which together accounted for $65 million of the company’s $81 million in sales in 1978), AVC also owns Minnette Mills Inc., Grover, N.C., which produces tufted and woven bedspreads. The company was also in the TV business until last year when it sold the operating assets of WPHL-TV Inc. of Philadelphia to the Providence Journal Co., Providence, R.I. for $10 million.

Trumbull, Conn.-based Raybestos-Manhattan (1978 sales: $285 million) manufactures friction materials, rivets and industrial products. One of its subsidiaries is Milford Rivet & Machine Co., which has plants in Milford, Conn. (Northeast division and Machine division); Elyria, Ohio (Midwest division); Hatboro, Pa. (Eastern division); Fullerton, Calif. (Western division); and Greenville, Miss. (Southern division).
Also a part of R-M is the Farrel Products division of Fullerton, Calif.

AVC told the SEC that the purpose of its purchase of R-M stock is to enhance the value of its investment as well as its ability to conclude an overall combination between AVC and Raybestos-Manhattan.

Worth noting in this apparent move towards a closer consolidation of the two companies is the presence of yet another company that could have some say in what’s going on: The Budd Co. in 1977 acquired 103,000 shares of the common stock of AVC for $1.5 million and a 15-ear $3 million subordinated debenture convertible into 210,000 shares of common stock seven years from the date of the agreement.
At present, AVC has about 1,364,000 common shares outstanding. Dudley A. Ward, vice chairman of The Budd Co., is on the board of directors of AVC and is a member of its audit committee. ©1979 / 2010 Fastener Industry News

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