General Signal
| Company type | Public |
|---|---|
| Industry | Control equipment and systems |
| Fate | Acquired by SPX Corporation in 1998 |
Area served | Transportation and telecommunications sectors |
Key people | Michael Lockhart (CEO until 1998), Arthur W. Zafiropoulo (President and CEO of Drytek and various divisions) |
| Products | Control systems technology |
| Parent | SPX Corporation (since 1998) |
General Signal Corporation (previously known under a different name) was a publicly listed company specializing in control equipment and systems, headquartered in Stamford, Connecticut. It was included in the Standard & Poor S&P 500 Index and recognized as a prominent producer of control systems technology, mainly catering to the transportation and telecommunications sectors. In late 1998, the smaller entity SPX Corporation acquired General Signal for approximately US$2 billion.
History
Operating under the ticker GSX on the New York Stock Exchange, General Signal Technology Corp. focused on manufacturing control equipment and systems.
The company expanded in 1978 by merging with Leeds & Northrup (L&N).
In 1986, it purchased Drytek, Inc., a firm specializing in plasma dry-etch technology. Drytek was founded by Arthur W. Zafiropoulo, who took on the roles of President and CEO within General Signal following the acquisition.
By July 1987, Zafiropoulo had also assumed the presidency of Kayex, a semiconductor equipment division within General Signal.
The acquisition of Mirtone occurred in 1988.
In February 1989, Zafiropoulo was promoted to lead General Signal's Semiconductor Equipment Group International while continuing his presidency at Kayex.
September 1990 saw him appointed as President of the Ultratech Stepper Division of General Signal.
In March 1993, Zafiropoulo acquired both assets and liabilities from the Ultratech Stepper Division, establishing an independent entity named Ultratech Stepper, Inc., later rebranded as Ultratech, Inc., where he held the positions of President, CEO, and Chairman.
That same year, General Signal divested Drytek to Lam Research Corporation.
Throughout the mid-1990s, General Signal undertook several divestitures to focus its business. This included selling L&N to Honeywell in 1995 and offloading Dynapower/Stratopower, which belonged to its industrial technology segment.
By 1997, the company reported revenues of US$1.95 billion: electrical controls represented nearly half of total sales, process controls contributed around one-third, and industrial technology made up less than twenty percent.
General Signal’s main office was located at 1 High Ridge Park in Stamford. By 1997, it had established an online presence that now redirects to SPX’s website.
SPX buyout
In 1995, SPX Corporation from Muskegon, Michigan, a Standard & Poor's SmallCap 600 firm with slow growth mainly producing automotive engine service tools, appointed former General Electric executive John Blystone as CEO late that year. Under his leadership, SPX’s stock price nearly quadrupled over two and a half years.
By August 1998, with sales just below US$1 billion in 1997, SPX completed the acquisition of General Signal Corp., which was twice its size. The transaction valued at US$2 billion involved both stock and cash at US$45 per share. This deal marked SPX’s strategic expansion into the electrical and industrial controls industry.
Finalized in late 1998, the merger resulted in General Signal’s shareholders holding a 60% stake in the combined entity that retained the SPX name and headquarters location. Following the acquisition, Michael Lockhart, then CEO of General Signal, along with other top executives, exited the company.
SPX anticipated achieving cost reductions between US$55 million and US$60 million by 1999, its first full fiscal year after merging.