McGraw Electric
| Company type | Private |
|---|---|
| Industry | Electrical appliances |
| Founded | 1900 |
| Founder | Max McGraw |
| Fate | Merged with Thomas A. Edison, Inc. to form McGraw-Edison in 1957 |
| Headquarters | Sioux City , United States |
| Products | Electrical appliances, including Toastmaster pop-up toaster |
The McGraw Electric Company was an American manufacturer specializing in electrical appliances, established by Max McGraw in 1900. Through a series of mergers and acquisitions, it grew into a prominent entity within the electrical appliance sector. Among its most recognized products was the Toastmaster pop-up toaster. In 1957, McGraw Electric combined with Thomas A. Edison, Inc. to create McGraw-Edison.
Early years
At just 17 years old in 1900, Max McGraw founded the McGraw Electric Company as an electrical supply enterprise operating out of a basement beneath a Sioux City drugstore. The initial focus was on wiring residences converting from gas to electric power, securing lucrative contracts by its second year with local organizations such as the Stockyards and Peavey Grand Opera House.
By 1902, the company moved to more spacious facilities within Sioux City. The following year, McGraw partnered with others to establish the Interstate Supply Company, broadening operations into sales of mill, railroad, and electrical equipment. In 1907, he launched Interstate Electric Manufacturing Company as a manufacturing division producing magnetos, telephones, and power switchboards. This manufacturing branch became autonomous and merged in 1910 with the supply company to form Interstate Supply and Manufacturing Company.
In 1912, McGraw acquired the Lehmer Company, a manufacturer of mill supplies and electrical equipment that had served as a model for his enterprises. He merged Lehmer with Interstate Supply and Manufacturing under the McGraw Electric Company banner, taking on the role of president. That year marked notable growth as combined sales surpassed $2 million.
Post World War I
In 1926, McGraw Electric divested its wholesale division to Westinghouse Electric and Manufacturing Company and purchased Bersted Manufacturing, a producer of small appliances led by founder Al Bersted; this became a division under Bersted’s management until he reacquired it in 1930. The Waters-Genter Company—established in 1912 and known for manufacturing the Toastmaster pop-up toaster—received investment from McGraw in 1926, facilitating entry into the consumer market by 1927. McGraw acquired Waters-Genter that same year and transferred his interests to McGraw Electric in 1929; Waters and Genter continued overseeing the Toastmaster division until 1938.
Guided by McGraw’s principle of acquiring only profitable or struggling companies poised for recovery, McGraw Electric pursued strategic expansions. In 1938, it constructed a $250,000 manufacturing facility in Elgin, Illinois, encompassing 123,000 square feet on a 25-acre site adjacent to the Fox River. During World War II, this plant contributed by producing anti-aircraft shells and fuses.
Post World War II
The year 1948 saw McGraw Electric acquire Bersted Manufacturing alongside Manning, Bowman & Co., appointing Al Bersted as president and later CEO. This acquisition brought subsidiaries such as Swartzbaugh Manufacturing ("Everhot" appliances) and United Electrical Manufacturing ("Eskimo" fans) into the fold. Further purchases expanded their brand portfolio to include Clark Water Heater, Buss Fuse, Speed Queen, Albion Humidifiers, Tropic Aire, Village Blacksmith, Duracrest, Spartan Bottle Warmers, Coolerator, Zero, and Halo Lighting.
By 1948 the company operated production plants in Chicago, Elgin, and Saint Louis with reported sales reaching $21 million and net profits of $2.7 million. In 1949 McGraw acquired Milwaukee-based Line Material Company—a manufacturer of power line equipment—which had generated $38.75 million in sales and $3.1 million net income in 1948. The company merged with Pennsylvania Transformer Company in 1952 and shifted Toastmaster production to Missouri in 1953.
After World War II, diversification continued with the acquisition of General Mills’ home appliance division in 1954 to enhance presence in electric irons, toasters, and pressure cookers markets. By 1955 McGraw Electric operated thirty-one divisions boasting nearly $300 million in annual revenue. In 1956 arrangements were made to merge with Thomas A. Edison, Inc., culminating in the formation of the McGraw-Edison Company in January 1957.
Acquisition timeline
Significant acquisitions by McGraw Electric encompassed:
| 1926 | Bersted Manufacturing Company | Waffle irons (divested in 1930) |
| 1928 | Clark Water Heater Company | |
| Bussmann Company | Electrical fuse products | |
| 1929 | Waters Genter Company | Toastmaster brand |
| 1939 | "Focolipse" heater | Acquired from Pitt Corporation |
| 1948 | Bersted Manufacturing Company | Reacquired from Al Bersted |
| United Electrical Manufacturing Company | "Eskimo" fans (subsidiary of Bersted) | |
| Swartzbaugh Manufacturing Company | "Everhot" appliances (Bersted subsidiary) | |
| Manning, Bowman & Co. | Appliance manufacturer (Bersted subsidiary) | |
| "Tip-Toe" iron | Obtained from Yale & Towne Manufacturing Company | |
| Edison of Canada Limited | ||
| 1949 | Line Material Company | Canadian power line equipment supplier |
| 1951 | Tropic-Aire | Bus air conditioning systems |
| 1954 | General Mills home appliances | |
| 1956 | W. E. Moore & Company | Industrial drying equipment |
| Speed Queen | Residential laundry appliances | |
| Lectromelt Furnace Corporation |