Honeywell sales off it's car care business (Fram, Autolite & Prestone) to Auckland NZ company.

[Milaca]

http://www.bloomberg.com/news/2011-01-28/honeywell-raises-profit-forecast-sells-car-care-business-for-950-million.html?cmpid=yhoo

I find it interesting to trace the ownership of these well known brands over the years. After some investigating on the internet, here is what I found:

The Fram oil filter company (named after the chemists that began the company, whose last names are FRanklin and AldAM) was incorporated in 1934. It was purchased by the Bendix Corporation in 1967, and Bendix was acquired by Allied Chemical in 1983, Allied Chemical merged with the Signal Companies in 1985 to form Allied-Signal and Allied Signal merged with (or actually purchased) Honeywell in 1999 (at which time more than 1000 employees at the Honeywell headquarters in Minneapolis, Minnesota, lost their jobs as the base of operations moved to the Allied Signal headquarters in Morristown, New Jersey).
Interesting side note, the first auto manufacturer to offer a Fram dry air filter element was Studebaker for 1952 models.

Prestone debuted in 1927 (ethylene glycol anti-freeze) as a product of the National Carbon Company (Union Carbide). Prestone was purchased by Allied Signal in 1998.

Electric Autolite manufactures the first Autolite spark plug in 1936 in Fostoria, Ohio. Electric Autolite sales the Autolite division to Ford in 1961, then Autolite is purchased by Bendix in 1973 and merged with Fram upon Allied Chemical (later Allied Signal) acquiring Bendix in 1983. Furthermore, Elecric Autolite (renamed Eltra Corporation upon the sale of Autolite to Ford), which is the parent company of Prestolite, is purchased by Allied Chemical in 1979.

Here is a link to the history of the Autolite company:

http://www.fostoria.org/history/autolite/autolite2.html#parent

[sweetolbob]

Posted from the History Of Autolite

The main Eltra Plant was located on Champlain Street in Toledo, and in 1962, after continuous labor troubles and the deterioration of manufacturing equipment, the plant was dismenbered and reorganized with its subsidiary, Prestolite, whose headquarters of four divisions was in Toledo. Jobs were transferred to Bay City Michigan; Woodstock, Illinois; East Point, Georgia; Oakland, California, and a new plant was built in Decatur, Alabama.

This hits close to home because in my pole barn is a very solid steel workbench and a wheeled cart from the Bay City Plant that I purchased from an ex-employee friend of mine when plant shut-down in the 1980's.

One thing I will say about foreign ownership. My son is an engineer for an American Company that passed through several hands until it was purchased about 15 years ago by a British Conglomerate. Since that time the company has grown and added other complimentary companys that have survived the down turn and treat their employees like real people. Hope Fram has that success.

Bob

[N8N]

does this mean the quality of the orange can might improve?

nate

[sweetolbob]

does this mean the quality of the orange can might improve?

nate

Well, and that too.

To back up Nate's comment

Posted from the HAMB

http://www.jalopyjournal.com/forum/s...5635&showall=1

Bob

[DieselJim]

Honeywell is shuting down the South Bend In. plant by the end of 2011. That will be the end of The company that started as Bendix. Jim

[Milaca]

Honeywell is shuting down the South Bend In. plant by the end of 2011. That will be the end of Bendix. Jim

Jim, I don't think Honeywell has any connection to that Bendix operation, as I recall, it is owned by Bosch or Robert Bosch LLC.

Upon further research, it appears that Honeywell (Allied Signal) had their hands in the Bendix Brakes company along with German companies Bosch and Knorr-Bremse....I am very confused as to how this transpired, but Knorr-Bremse is the current owner of Bendix Commercial Vehicle Systems (heavy duty air brake components). Perhaps Bosch owns another division of Bendix brakes, and Honeywell yet another division of Bendix brakes (aside from the other Bendix divisions like aviation and electronics)? Too many large corporations in bed together!

[DEEPNHOCK]

But it could be a good thing, too.........
The new owner is a Kiwi.
Interesting guy...

http://en.wikipedia.org/wiki/Graeme_Hart

[Pat Skelly]

Fram Filters sold

MORRIS TOWNSHIP, N.J. -- Honeywell today announced that Rank Group, a private investment company, will acquire its automotive Consumer Products Group (CPG) business in a cash transaction valued at approximately $950 million.



The CPG business, headquartered in Danbury, Conn., has more than 2,000 employees and includes four leading consumer automotive brands: FRAM filters, Prestone antifreeze, Autolite spark plugs and Holts car care products. Currently reported within Honeywell's Transportation Systems segment, the CPG business had 2010 sales of approximately $1 billion. Following the divestiture of CPG, Transportation Systems, which includes Honeywell's global turbocharger and braking businesses, will continue to operate as one of Honeywell's reported business segments.

Rank Group is a New Zealand-based private company that invests across a variety of industries and aims to build and grow leading global businesses, including Reynolds Group Holdings, one of the largest packaging companies in the world. Rank Group also is in the process of acquiring UCI International, parent company of Airtex Products, ASC Industries and Champion Laboratories. Rank is buying UCI for approximately $375 million.

Honeywell Chairman and CEO Dave Cote said, "We are pleased to announce the sale of CPG to Rank Group. While CPG is a good business, it doesn't fit with our portfolio of differentiated, global technologies. We are confident that Rank Group, with its proven track record of investing in and building established franchises, will be a good home for CPG's consumer brands, customers and employees.

"We're committed to our Transportation Systems segment and are confident in our leading technology position in the global turbocharger business, aligned with the favorable macro trends of increased fuel economy and lower emission requirements around the world," continued Cote. "Smart deployment of CPG sale proceeds, combined with the strong growth outlook for Transportation Systems, will deliver terrific long-term value to our customers and shareholders."

The transaction is subject to regulatory approval and customary closing conditions and is expected to close in the third quarter of 2011. Upon regulatory approval, the company expects to account for CPG as discontinued operations. The company's 2011 EPS guidance excludes the anticipated book gain on the sale of CPG, which it expects to utilize for repositioning and other actions. The benefits of these actions, together with the deployment of divestiture proceeds, are expected to more than offset lost CPG earnings beyond 2011.

[showbizkid]

I love the Aussies! I'd certainly much rather these companies were in their hands than sold to China, Venezuela, Saudi Arabia, or some other oil-rich upstart that hates our guts.

[Milaca]

I love the Aussies! I'd certainly much rather these companies were in their hands than sold to China, Venezuela, Saudi Arabia, or some other oil-rich upstart that hates our guts.

Careful there Clark, the new owner is a New Zealander, not Australian! Keep in mind that there is more than 1000 miles seperating the mainlands of the two countries.

[Jim B PEI]

Yes, be careful there. Australians and New Zealanders share geography (fortunately-as many there say-not too closely <g>) and are friends and allies in much the same way as The United States and Canada. With many of the same issues. And jokes.

[garyash]

Honeywell Chairman and CEO Dave Cote said, "We are pleased to announce the sale of CPG to Rank Group. While CPG is a good business, it doesn't fit with our portfolio of differentiated, global technologies. We are confident that Rank Group, with its proven track record of investing in and building established franchises, will be a good home for CPG's consumer brands, customers and employees.

"We're committed to our Transportation Systems segment and are confident in our leading technology position in the global turbocharger business, aligned with the favorable macro trends of increased fuel economy and lower emission requirements around the world," continued Cote. "Smart deployment of CPG sale proceeds, combined with the strong growth outlook for Transportation Systems, will deliver terrific long-term value to our customers and shareholders."

I think this guy had the buzz-word generator running from one of his turbochargers. You can be sure that he didn't actually write or say those words himself, but they were probably put together by some well-paid PR firm for a press release. What he was trying to say was: "We're not really interested in old businesses with loyal customers that just make average profits every year. We want pie-in-the-sky glamor with the promise of profits that will never be realized." Been there, heard that many times.

[Bob Andrews]

Here in Syracuse Honeywell ended up with Allied Chemical, which was the soda ash plant in Solvay, a Western suburb of the city. For over 100 years the plant was simply known locally as 'Solvay process' referring to the soda ash production process. I used to buy trucks and vans from them; all painted blue, all filthy and showing rust and corrosion in just a couple years, all super-low mileage and dirt cheap. Sold many to locals who didn't care about the rust, just loved getting low-mileage trucks dirt-cheap.

Anyway, the main byproduct of soda ash production is calcium chloride. In Solvay they simnply set up 'waste beds' on property and dumped it there. Unfortunately it's right on the shore of Onondaga Lake, and over the decades poisoned the lake terribly. To look at it you wouldn't know, and it is still a centerpiece of the Syracuse area.

Shortly after Honeywell combined with Allied, they closed the entire works down. My cousin Bob Quinn (like a father to me) was suddenly unemployed at 52 after 26 years there. As it happened they agreed to give those with 25 or more years a severance and pension, so he came out OK. Honeywell pledged to clean up the site and the lake and in the 20 years since they have spent tens of millions on the job. Today most of the buildings are gone, a lot of the waste beds cleaned up, and have brought the lake a LONG way back. Overall they have done as promised, and work continues today.

As for Bob, he just always assumed he would die from cancer from all the years of working in that environment. Instead he died suddenly at 70 years of age in his sleep, looking to be in his 50s. Many of his co-workers did in fact die feom cancer. In their day, possible death from work hazards was considered part of the deal.

[BobPalma]

I think this guy had the buzz-word generator running from one of his turbochargers. You can be sure that he didn't actually write or say those words himself, but they were probably put together by some well-paid PR firm for a press release. What he was trying to say was: "We're not really interested in old businesses with loyal customers that just make average profits every year. We want pie-in-the-sky glamor with the promise of profits that will never be realized." Been there, heard that many times.

Great translation, Gary; much appreciated.

Right now, I'm trying to decide what constitutes the most volatile permissable topic on the SDC Forum: Modified Studebakers, Wal-Mart, or Fram filters. All three have virtually no fuse and blow up immediately upon the first post! <GGG> BP

[4961Studebaker]

Honeywell in our area (father retired from the plant) will be closing it's Bannister Rd location and relocating to a MUCH LARGER facility (currently being built) in a couple of years just south of KC---150 HWY...So with closings in some areas others are seeing growth. It was alway's rumored that the KC facility made electrical components for guided missles and other weaponry. Class action / lawsuits plauge this company over the use of caner causing chemicals.