Gulf and Western Industries

Gulf and Western Industries, Inc.
Company type	Public
Industry	Conglomerate (manufacturing, resource extraction, entertainment)
Predecessor	Michigan Bumper Corporation
Founded	1934
Fate	Renamed Paramount Communications in 1989; acquired by Viacom in 1994
Successor	Paramount Communications
Headquarters	Houston, United States
Area served	Worldwide
Key people	Charles Bluhdorn (chairman and president)
Products	Manufacturing, resource extraction, entertainment (film studio, television production, video games, publishing, music labels)

Gulf and Western Industries, Inc. (commonly presented as Gulf+Western) was a prominent American conglomerate initially centered on manufacturing and resource extraction. Starting in 1966, the corporation redirected its business approach by purchasing major entertainment enterprises throughout the 1970s. Noteworthy acquisitions comprised the film studio Paramount Pictures (1966), television production company Desilu Productions (1967), arcade and video game manufacturer Sega (1969), publishing house Simon & Schuster (1975), along with music labels such as Dot Records, which formed the basis for Paramount Records. Several of these subsidiaries were consolidated under the Paramount brand, with Desilu rebranded as Paramount Television.

During the 1980s, Gulf and Western divested many non-entertainment assets to focus primarily on its media-related operations. In 1989, the firm adopted the name Paramount Communications. This strategic shift bolstered its presence in both the entertainment and publishing markets.

In 1994, Viacom secured a controlling stake in Paramount Communications. Today, Gulf and Western’s entertainment legacy is integrated into the global media powerhouse Paramount Global, representing substantial growth and strategic direction within the industry.

Bluhdorn era

The roots of Gulf and Western date back to 1934 with the establishment of Michigan Bumper Corporation. Following multiple renamings, Charles Bluhdorn assumed control in 1956, renaming it Gulf and Western Corporation by 1958 to signify its Houston base and concentration on the automotive sector in the western United States. By 1960, it became Gulf and Western Industries. Under Bluhdorn’s leadership, the company pursued an aggressive diversification strategy spanning agriculture, apparel, construction materials, entertainment, financial services, consumer goods, natural resources, and publishing.

Between 1958 and 1982, Gulf and Western expanded through numerous acquisitions that strengthened its market position and industry reach:

1950s

J. A. Walsh (1959)
Lester Battery & Electric Company (1959)
Unicord (1959), a manufacturer known for electric transformers and Univox amplifiers

1960s

Mal Tool and Engineering Company (1960)
Hendrie & Bolthoff Manufacturing & Supply Company (1961)
Allbright's Auto Parts (1962)
General Products Corporation (1962)
Rocket Jet Engineering Corporation (1963)
Amplifier Corporation of America (1964)
Crampton Manufacturing Company and its subsidiaries (1964)
Foxcraft Products Corporation (1964)
Miller Manufacturing Company along with multiple subsidiaries (1964)
Philmont Pressed Steel (1964)
Barr, Thomson & Company (1965)
Rea Auto Supply (1965)
General Plastics (1966)
Paramount Pictures (1966), marking a significant move into entertainment
New Jersey Zinc Company along with associated mining operations (1966), enhancing natural resource assets
Universal American Corporation encompassing various manufacturing subsidiaries (1966)
Associates Investment including Capitol Life Insurance and First Bank & Trust subsidiaries (1968)
Brown Company with its paper product subsidiaries (1968)
Consolidated Cigar Corporation and affiliated companies (1968), extending into tobacco products
E. W. Bliss Company together with several industrial subsidiaries (1968)
Sega (1969), entering the burgeoning video game sector

This broad acquisition campaign under Bluhdorn’s direction positioned Gulf and Western as a diversified conglomerate wielding considerable influence across multiple industries.

1970s

Eagle A (1970)
Auto Body Parts Corporation (1971)
Camino Tours (1971)
Bayamon Body Parts (1971)
Guayama Body Parts (1971)
Newport Supply Company (1971, 1972)
Piezas Europeas (1971)
Aye & Stearns (1972)
Budget Finance Plan (1972)
Fabrica Accumulatori Uranio (1972)
Fun In The Sun Tours (1972)
Hawaiian Polynesia Tours (1972)
John M. Henderson & Company (1972)
Shattuck Denn Mining Corporation, including its subsidiaries Fireproof Products and Richmond Screw Anchor (1972)
Symons Corporation (1972)
Plavica (1973)
Preferred General Agency of Alaska (1973)
Sterling Pulp & Paper Company (1973)
Behm and Fab-co Metals, acquired from Pott Industries (1974)
Elco Corporation (1974)
Hawtin & Partners (1974)
Société de Construction Mécanique de Bourgogne, purchased from Dujardin Montbard Somenor (1974)
Kayser-Roth Corporation, owner of Miss Universe Inc. and Hammacher Schlemmer (1975)
Simon & Schuster, including Pocket Books, Monarch Press, and Washington Square Press imprints (1975)
Her Majesty Industries, specializing in children's apparel manufacturing (1976)
Peavey Paper Mills (1976)
Solar Fuel Company (1976)
Madison Square Garden Corp. and related assets such as the New York Rangers, New York Knicks, O'Hare Hilton Hotel, Arlington Park, Roosevelt Raceway, Washington Park race tracks, and real estate holdings in Manhattan, Long Island, and Chicago (1977)
Société des Blancs de Zinc de la Méditerranée (1977)
Gremlin Industries, which later became Sega Electronics, Inc. (1978)
Compañía Insular Tabacalera and Canaries Cigar and Tobacco companies (1979)
Esco Trading (1979)
Simmons Company (1979)
Wallace Metal Products (1979)

1980s

National Casket Company, acquired from Walco National Corporation in 1980
Thomas Ryder & Son, a machine tool manufacturer based in Bolton, England, obtained from Whitecroft in 1981

Minority stakes

Gulf and Western maintained minority interests in various businesses including Camino Gold Mines, Cementos Nacionales, Fertilizantes Santo Domingo, Flying Diamond Oil Corporation, Jonathan Logan, J.P. Stevens & Company, Mohasco Corporation, Alberto-Culver, Amfac, B.F. Goodrich, Brunswick Corporation, Bulova, Cluett Peabody & Company, Cummins, Fratelli Fabbri Editori, General Tire, Libbey-Owens-Ford, Munsingwear, and Uniroyal, among others.

Other activities

Upon acquiring Paramount in 1966 for $125 million, Gulf and Western inherited a studio facing financial losses but possessing valuable assets such as extensive real estate holdings and a film library that generated substantial income through television licensing. This acquisition elevated Gulf and Western's annual sales to $450 million, placing it within the top 110 U.S. manufacturers. Charles Bluhdorn appointed himself chairman and president of Paramount while promoting Martin S. Davis to chief operating officer, signaling a strategic move into the entertainment sector.

Paramount's portfolio included International Telemeter Corporation; the Canadian theater chain Famous Players; Dot Records; Famous Music publishing; and Famous Studios animation division—which was closed shortly after the acquisition. After purchasing Stax Records in 1968, it operated as a subsidiary under Dot before being integrated into Famous Music.

In 1967, Gulf and Western acquired Desilu Productions’ television library—which featured shows like Star Trek and Mission: Impossible—and rebranded it as Paramount Television. This transaction included three studio lots; however, antitrust regulations required selling Culver Studios to prevent monopoly concerns.

By 1969, Gulf and Western expanded into oil exploration through a contract in Indonesia managed by its subsidiary. Additionally, it established an industrial free zone in La Romana through Operadora Zona Franca de La Romana.

During the early 1970s, Paramount combined its international distribution with MCA’s Universal to form Cinema International Corporation; this entity later evolved into United International Pictures with the inclusion of United Artists.

Throughout the decade, Gulf and Western restructured various holdings: divesting manufacturing businesses such as Hubbard Spool and Hardie agricultural sprayers; returning Stax Records to its original owners; launching Paramount Records as its principal music label; investing in independent labels like Blue Thumb Records; and ultimately selling its entire record division to ABC in 1974.

The company also took Sega Enterprises public in the United States by making it a subsidiary of Polly Bergen Company—which Gulf and Western acquired in 1971—and appointed David Rosen as CEO. In 1975, Gulf and Western collaborated with Belgium’s Union Minière to create Jersey Miniere Zinc Company with a 60% ownership stake while expanding Sega’s arcade operations through the acquisition of Kingdom of Oz.

Gulf and Western’s diverse portfolio extended to industrial projects such as a fertilizer manufacturing plant in Illinois—which later became a Superfund site—zinc mining operations in Thailand via Thai Zinc Ltd., and equipment supply contracts for Soviet truck production facilities.

In media ventures, Gulf and Western abandoned plans for launching the Paramount Television Service network due to revenue challenges and subsequently sold Hughes Television Network in 1979. Barry Diller—who had proposed PTVS during his tenure at Paramount—later moved to 20th Century Fox where his concepts contributed to the establishment of Fox Broadcasting Company.

This broad diversification across entertainment, manufacturing, mining operations, and international markets exemplified Gulf and Western’s growth strategy focused on acquisitions and global business expansion.

Early 1980s

On June 5, 1980, Gulf and Western unveiled an electric vehicle powered by a zinc chloride battery, which was claimed to provide several hours of operation and reach speeds up to . Nevertheless, the U.S. Department of Energy, having invested $15 million in the project, revealed that the battery delivered only 35% of the anticipated power and required a unique recharging process. That same year, Gulf and Western divested Hammacher Schlemmer to J. Roderick MacArthur's Bradford Exchange and sold its 80% ownership in Brown Company to James River Corporation, receiving cash and James River shares in return—assets Bluhdorn considered more lucrative.

In 1981, a group of former executives from Gulf and Western Natural Resources acquired New Jersey Zinc through a management buyout, establishing Horsehead Industries. Additionally, Gulf and Western announced the closure of its loss-making Schrafft Candy division, which was subsequently sold to American Safety Razor Company.

During 1982, executive vice president Don Gaston created Richfield Holdings Ltd., purchasing Providence Capitol International Insurance Ltd. and Famous Players Realty Ltd. from Gulf and Western for $350 million before stepping down. That year also saw the sale of Marquette Cement Manufacturing to Lone Star Industries and Pennsylvania Malleable Iron to Champ Corporation.

After Bluhdorn passed away in 1983, senior vice president Martin S. Davis—who brought experience from Paramount Pictures—was promoted to CEO, surpassing president Jim Judelson.

In 1984, Gulf and Western broadened its media holdings by acquiring Esquire Inc., which included Globe Book Company, Allyn & Bacon, Modern Curriculum Press, Centron Corporation, Coronet Films, Perspective Films, MTI Teleprograms, and Prentice Hall. Its subsidiary Kayser-Roth also purchased Calvin Klein’s women’s underwear division along with licensing rights to use the designer’s name for that line.

Martin S. Davis restructuring

Under the leadership of Martin S. Davis, Gulf and Western concentrated on entertainment by divesting assets unrelated to media and publishing to enhance shareholder value. Although Paramount performed well financially, the conglomerate’s overall results were met with disappointment, leading to multiple subsidiary sales.

In 1983, Consolidated Cigar was sold to a consortium headed by its president Alexander N. Brainard. That year also involved selling building products divisions to Merrill L. Nash, transferring E.W. Bliss ownership to investors, and handing over U.S.-based Sega assets—including manufacturing facilities and arcade game licenses—to Bally Manufacturing. Meanwhile, Japanese Sega assets were acquired in 1984 by investors led by David Rosen and Hayao Nakayama. Gulf and Western integrated the former U.S. Sega businesses into Simon & Schuster and merged Sega Europe into Paramount Pictures—a collaboration that would eventually contribute to the Sonic the Hedgehog film franchise decades later.

In 1984, Taylor Forge operations were sold to private buyers; Bonney Forge was transferred to its president John Leone; Super Tool and Morse Cutting Tools were acquired by industrialist Jim Lambert; while properties in Florida and the Dominican Republic were sold to an investment group that included Carlos Morales Troncoso and the Fanjul brothers.

By 1985, Gulf and Western had divested its Consumer and Industrial Products Group—which encompassed A.P.S., Kayser-Roth, and Simmons—to Wickes Companies; sold Columbus Circle Investors asset management firm to Thomson McKinnon; and purchased Ginn & Company from Xerox.

Maintaining its focus on entertainment in 1986, Gulf and Western acquired Mann Theatres (later entering a partnership with Warner Communications). Simon & Schuster expanded through acquisitions such as Silver Burdett, General Learning Corporation, Gousha maps in 1987, followed by Charles E. Simon and Quercus in 1988. Reflecting this strategic realignment, the company rebranded itself as Paramount Communications in 1989 while selling Associates First Capital Corporation to Ford Motor Company.

Headquarters

Prior to 1970, the company maintained its main offices on Madison Avenue in Manhattan.

Completed in 1970, the Gulf and Western Building at 15 Columbus Circle, Manhattan, was designed by Thomas E. Stanley to serve as the corporate headquarters. Situated between Broadway and Central Park West, this 583-foot tower provided expansive views and included a dining establishment called The Top of the Park, operated by notable restaurateur Stuart Levin. Despite Levin’s acclaimed background with venues such as the Four Seasons, the restaurant failed to achieve commercial success. Additionally, the building housed a basement movie theater named Paramount, a nod to Gulf and Western’s ownership of Paramount Pictures; this cinema ceased operations following the building’s sale.

The 45-story office tower experienced several structural challenges, including extended periods of scaffolding around its base and noticeable swaying during windy conditions that caused discomfort among tenants.

In 1997, a significant redevelopment transformed the structure into the Trump International Hotel and Tower (One Central Park West). Architects Costas Kondylis and Philip Johnson spearheaded the project, which involved converting the original 45-story office space into a 52-story mixed-use residential and hotel building. This was achieved by lowering ceiling heights and modernizing the exterior with dark glass and steel framework, thereby increasing its appeal within the luxury real estate market.

References