Kennedy Company
| Company type | Private |
|---|---|
| Industry | Computer storage |
| Founded | 1963 |
| Founder | Charles J. Kennedy |
| Defunct | 1988 |
| Fate | Acquired and dissolved; assets sold to Irwin Magnetic Systems |
| Headquarters | Greater Los Angeles , United States |
Area served | Worldwide (including Europe, Australia, Canada, India, Israel, Japan, South Africa) |
Key people | Charles J. Kennedy (founder), Frank C. Bumb (president post-1980) |
| Products | Magnetic tape drives, hard disk drives, floppy disk drives, chain printers |
Number of employees | 1200 (1984) |
| Parent | Allegheny Ludlum (1979–1987), Shugart Corporation (1987–1988) |
Kennedy Company, commonly referred to as Kennedy Co., was a United States-based enterprise specializing in computer storage solutions from 1963 until 1988. Established by Charles J. Kennedy (1920–1996) and based in the Greater Los Angeles region, the firm emerged as a prominent independent producer of magnetic tape data drives catering to the mainframe and minicomputer sectors. During the late 1970s, Kennedy diversified its product line by venturing into hard disk drives. The corporation was purchased by Allegheny Ludlum in 1979 and functioned as a subsidiary until its acquisition by Shugart Corporation in 1987, which subsequently sold Kennedy’s assets to Irwin Magnetic Systems.
Establishment and Early Years (1963–1972)
Charles J. Kennedy, a veteran of the U.S. Air Force with engineering experience at Collins Radio, RCA, and F. L. Mosley, founded Kennedy Company in 1963, initially operating out of Altadena, California. The company’s early focus was on magnetic tape drives featuring incremental recording technology, soon advancing to develop random-access tape drives with enhanced capabilities. Production facilities were relocated from Altadena to Glendale, while research and development activities were eventually transferred to Atlanta, Georgia. Additionally, Kennedy maintained an office presence in Pasadena.
One of the company’s initial offerings was the M201 incremental recorder launched in 1963, which could store up to 350,000 alphanumeric BCD characters on standard 3M Quick-Load Cartridges. By 1969, Kennedy introduced tape drives compatible with IBM’s 7-track and 9-track formats, strengthening its competitive position within the data storage market.
Expansion and Ownership Changes (1972–1978)
Prior to 1972, Kennedy’s annual revenues remained near $3 million. The introduction of the 9000 series tape drives in 1972, which featured improved access speeds, combined with a transition to direct sales to customers, propelled revenues to $10 million by 1975. Nevertheless, the high expenses associated with operating nationwide service bureaus prompted the company to cease direct sales by late 1974 and revert to an original equipment manufacturer (OEM) strategy. In July 1975, Kennedy broadened its product portfolio by adding peripherals such as 8-inch floppy disk drives and chain printers.
Starting in the mid-1970s, Kennedy embarked on a strategy of rapid growth and global expansion, inaugurating its first international office in the Netherlands in 1976. By 1977, annual revenue had climbed to $16 million with market penetration spanning Europe, Australia, Canada, India, Israel, Japan, and South Africa. That same year, the company secured a decade-long lease on Avon’s former facility in Monrovia, initially occupying 190,000 square feet and obtaining veto authority over other tenants.
In December 1977, manufacturing operations were centralized into a new 35,000-square-foot facility located in Altadena near company headquarters. By April 1978, Kennedy entered the hard disk drive sector by leasing a 30,000-square-foot plant in Azusa for its Disk Division; this division produced Winchester-style drives measuring 14 and 8 inches while also relocating research and development efforts from Atlanta.
Kennedy’s turnover approached $25 million by 1978. In October of that year, Allegheny Ludlum based in Pittsburgh agreed to acquire Kennedy and integrate it into their Magnetics and Electronics division. The acquisition was finalized in March 1979, leading to consolidation of Kennedy’s five California locations into an expanded Monrovia facility encompassing a total of 242,800 square feet.
Post-acquisition period (1978–1990)
Charles J. Kennedy stepped down as president in July 1980 but continued to serve on the board. His successor, Frank C. Bumb, introduced the company's inaugural line of specialized data backup solutions. By the close of 1980, Kennedy's revenue was estimated between $45 million and $50 million.
In 1982, the company broadened its product range by purchasing hard drive production facilities, designs, and patents from BASF’s U.S. division located in Bedford, Massachusetts. This acquisition also included a license to manufacture BASF’s 5.25-inch floppy disk drives within the United States.
By 1984, the workforce numbered approximately 1,000 employees, reaching a peak of 1,200 with manufacturing operations that included a facility in Luquillo, Puerto Rico. However, due to financial difficulties faced by parent company Allegheny Ludlum, staff levels fell to around 650 by 1987. In September of that year, Allegheny Ludlum sold Kennedy to Shugart Corporation for an undisclosed amount.
Shugart operated Kennedy as a subsidiary for one year before dissolving it and transferring its assets to Irwin Magnetic Systems in 1988. Subsequently, Irwin was acquired by Cipher Data Products in 1989, which itself was purchased by Archive Corporation in 1990. These organizations specialized in tape backup technology; during these successive acquisitions, Kennedy’s patents were preserved and eventually leveraged by Archive Corporation to establish a competitive edge through patent enforcement in the early 1990s.