Alloys Unlimited, Inc.
List of Deals
- 1968 $15,000,000 principal amount 5 1/2% convertible subordinated debentures and secondary distribution of 115,622 shares of common stock
Alloys Unlimited was incorporated in New York in July 1957. It was established for the purpose of manufacturing high-purity metal parts for the emerging semiconductor industry that would meet extremely close chemical and physical tolerances. In the years that followed, Alloys grew quickly as the result of internal growth and several acquisitions.
Alloys Unlimited entered another major semiconductor component field, the production of glass-to-metal hermetic seals, in 1961 by acquiring Veritron West, Inc., and then Ceramics for Industry, Inc.
In 1966 it acquired substantially all of the assets of the Frenchtown Porcelain and Ceramics Division of General Battery and Ceramics. It also acquired Micro Science, a manufacturer of photo-etched lead frames for semiconductors and integrated circuits.
In 1967 Alloys acquired Automatic Metal Products, Northern Metal Products, and Universal Titanium. In 1968 it purchased Bissett-Berman, an oceanographic concern, Burton Electrochemical Industries, and U.S. Plastic Molding Company. Alloys continued making acquisitions in April 1969 by adding Welco Aerospace, a maker of aircraft wing spars and helicopter rotor blades, to the company. These acquisitions broadened the markets in which Alloys did business; it was now making subcomponents for the semiconductor, computer, and aerospace industries.
This aggressive pace of growth through acquisitions helped the company revenues grow at an average annual rate of 42.4% from 1963 through 1967. However, these acquisitions also had the effect of creating growing pains for Alloys that impacted both sales and earnings. In 1967 net income was $4.9 million on sales of $53.4. However, in 1969 net income had fallen to $1.9 million on sales of $37.8 million.
In 1970 Alloys Unlimited accepted an offer to merge into Plessey Inc., a subsidiary of Plessey Company, Ltd., a large British telecommunications and electronics company, in a deal that was valued at approximately $129.6 million.