Electrada
| Company type | Public company |
|---|---|
| Industry | Aerospace, industrial control products, software development |
| Founded | 1959 |
| Defunct | 1984 |
| Fate | Acquired by Dover Corporation in 1984; later became Sargent Aerospace & Defense |
| Headquarters | Los Angeles , United States |
Key people | Homer H. Rhoads (founding president), Henry C. Jones (president from 1960), Dan Burns (CEO appointed by creditor) |
| Products | Aerospace components, pressure vessels, pumps, hydraulic systems, industrial control devices, early commercial software (predecessor to MARK IV) |
| Parent | Dover Corporation (from 1984) |
Electrada Corporation, which later became known as Sargent Industries, was an aerospace firm headquartered in Los Angeles, California operating from 1959 until 1984. Originally established as a diversified conglomerate, Electrada encountered financial difficulties but is recognized for originating the predecessor to MARK IV, one of the earliest and most influential commercial software packages. Following a 1966 acquisition, the company reoriented itself as Sargent Industries, concentrating on aerospace and industrial control products. This new focus led to profitability and eventual acquisition in 1984, with the company subsequently undergoing several changes in ownership as a subsidiary.
Electrada Corporation
Founded in 1959 during the height of conglomerate expansion, Electrada brought together various unrelated enterprises under a single corporate structure. Homer H. Rhoads initially held the presidency, supported by a board that included prominent aerospace figures such as Donald Wills Douglas Sr. and notable business leaders like Justin Whitlock Dart Sr..
One of its early divisions, Advanced Information Systems, specialized in data processing research for both government agencies and private companies. This unit was jointly managed by aerospace engineer John A. Postley and information science innovator Robert M. Hayes.
Electrada went public in June 1960, offering 400,000 shares at $12 each through over-the-counter trading. The distinguished composition of its board facilitated this swift public offering. In November of that year, Henry C. Jones succeeded Rhoads as president. At this stage, Electrada’s product range included missile components, pressure vessels, rubber goods, data processing equipment, automated packaging machinery, and various industrial products.
Beginning in 1960, Advanced Information Systems developed GIRLS (Generalized Information Retrieval and Listing System) tailored for IBM 704 computers at Douglas Aircraft. This system later evolved into Mark I and Mark II versions for the IBM 1401 and gained attention in early industry literature. Despite this innovation, Electrada’s senior management lacked insight into the division’s operations. In April 1963, Advanced Information Systems was divested to Hughes Dynamics, and subsequently acquired by Informatics, Inc.. Its successor software product, the fourth-generation programming language MARK IV, emerged as a leading mainframe software solution.
Electrada also secured major aerospace contracts; notably in December 1962 it received orders for cryogenic pressure vessels utilized in Project Gemini, Project Apollo, and the Saturn booster programs.
Change in direction and name
By 1963, Electrada was experiencing severe financial challenges, reporting losses of $4.3 million against revenues of $10 million. Its creditor, Security Pacific Bank, appointed Dan Burns as chief executive officer. Burns observed that Electrada’s leadership was overly focused on acquisitions and financial dealings rather than effective operational management. Postley criticized the company’s executives as promoters lacking practical business skills and described the board as largely passive aside from facilitating stock market listing.
In response, Burns implemented workforce reductions amounting to 45% within three months. While continuing involvement in aerospace projects, he redirected the company’s focus from electronics toward manufacturing pumps and hydraulic systems.
A significant development was Electrada’s purchase of assets from Sargent Engineering Company from A. J. Industries between 1965 and March 1966. Established in 1920 by Sumner Benedict Sargent, Sargent Engineering specialized in precision force control devices such as valves and actuators. The firm had remained family-owned until its acquisition by A.J. Industries in 1961; this transaction marked a strategic pivot for Electrada. Subsequently, in May 1966, Electrada adopted the new corporate identity of Sargent Industries.
Sargent Industries
Sargent Industries, specializing in hydraulic and mechanical control components for aerospace and industrial applications, maintained consistent profitability with revenues reaching $30 million by 1969. Its shares were listed on both the American and Pacific Stock Exchanges. In 1969, the company pursued growth through acquisitions, most notably agreeing in October to acquire the larger Gar Wood Industries, thereby increasing its emphasis on industrial markets. The acquisition of Gar Wood was completed in March 1970.
Subsequently, Sargent became one of the pioneering leveraged buyouts executed by Kohlberg Kravis Roberts (KKR) using their inaugural 1976 fund, in a deal valued at $39 million. In 1978, ORICO—previously known as Open Road Industries and a recreational vehicle manufacturer that had declared bankruptcy following the 1973 oil crisis—purchased Sargent. After the acquisition, ORICO adopted the Sargent Industries name.
The reorganized entity demonstrated strong performance, generating approximately $6 million in earnings on nearly $100 million in sales by 1983. Dover Corporation acquired Sargent in 1984 for $68 million. Operating as a subsidiary under the name Sargent Controls, the company relocated to Arizona and later rebranded as Sargent Aerospace & Defense. This division continues to deliver precision-engineered parts worldwide to aerospace and transportation industries. In 2015, Dover divested Sargent Aerospace & Defense to RBC Bearings for $500 million.