Lear Siegler Incorporated (LSI) was a diverse American corporation established in 1962. Its products range from car seats and brakes to weapons control systems for military fighter planes. The company's more than $2 billion-a-year annual sales comes from three major areas: aerospace-technology, automotive parts, and industrial-commercial. The company, however, is basically anonymous, since its products are either unmarked or bear only the label "LSI". Lear Siegler went private in 1987. LSI is sometimes confused with Learjet, which manufactures executive jets.
History
Siegler The Siegler Corporation was incorporated in December 1950 as the Siegler Heating Company. Originally a maker of climate control equipment, the company changed its name to Siegler Corporation after merging with Siegler Enamel Range Company Inc. in 1954. In that year, John G. Brooks, a flamboyant entrepreneur, and nine other associates bought the Siegler Corporation of Centralia, Illinois, for $3.3 million; $3.2 million of this was borrowed for 24 hours at a cost of $60,000. Over the next decade and a half, Brooks, who became Siegler's first president, established a reputation for supervising numerous startling acquisitions. In June 1955, seven months after the merger, Hallamore Manufacturing Company, an electronics firm, became Siegler's first "technology" acquisition. During the 1960s, the company expanded rapidly. John G. Brooks (Echo Products, Zenith Radio, and US Army Air Corps) headed up the new enterprise. The management team transformed the low-tech space heater company into a viable corporate platform for acquiring multiple successful small companies. This strategy of "buying growth" coupled with sound management proved successful. At the end of its first year the corporation listed on the New York Stock Exchange. The Siegler Corporation quickly distinguished itself as one of the first conglomerates. These were a new breed of business entities that were characterized by a variety of diverse business interests or operating divisions held or controlled by a central management. This management component was typically the only thing these divisions had in common. Examples of conglomerates are LTV (Ling-Temco-Vought) and TRW (Thompson Ramo Wooldridge). Siegler continued its program of non-hostile acquisitions of target companies. In 1956–1957 it added Hallamore Electronics of Anaheim, California, and the corporate offices followed to Southern California. Notable efforts of the new Los Angeles based enterprise included:
The first attempt to introduce cable television (1960–1961) in the form of a product offered by STV (subscription television) was strongly opposed by theater owners and existing television networks, and their lobbying effort resulted in a legislative measure to prohibit such service. Pioneering efforts in heating, ventilating and air conditioning by the Holly division ultimately resulted in the development of heat exchanger technology for commercial and residential climate control.
Merger into Lear Siegler Lear Siegler Incorporated was created as a result of the 1961 merger between the Siegler Corporation (Los Angeles) and Lear Avionics Inc. (of Santa Monica, also known as Lear Inc.). Lear Inc. was an aerospace electronics firm. The merger was complete by 1962, and the new company was named Lear Siegler Incorporated. The deal, which cost Siegler five shares for each seven Lear shares, nearly doubled the company's sales – from $96.2 million in 1961 to $190.8 million by the end of 1962. John G. Brooks was founder, President and Chairman of Siegler; and William Lear was founder, President and chairman at Lear. The merger was based on Brooks' plan of acquiring and growing successful but possibly unrelated operating companies (with resources and management in common) into one of the first conglomerates (with a focus on aerospace, defense and consumer markets), and Lear's goal of divesting his ownership interest in Lear to pursue development of his Learjet corporate aircraft (the first pure jet private aircraft) as well as other engineering innovations. The business climate was strongly influenced by the political undercurrent that accelerated when Sputnik was launched, and amplified when President John F. Kennedy set as a national goal putting an American astronaut on the Moon by the end of the 1960s. This goal, based on an unprecedented effort by the combined resources of the American aerospace industry, was achieved in 1969. In 1965, LSI acquired all assets of Hypro Engineering Inc. (operated as the Hypro Division) in exchange for more than 120,000 common shares. In 1966, it purchased American Metal Products Corporation, an automobile seating and furniture parts manufacturer, and Home Furnace Company (which operated as a division of the company). In 1968, LSI purchased National Broach & Machine, a gear machine manufacturer. LSI acquired Cuckler Steel Span Company (operated as Cuckler Building Systems Division) in 1970. The purchase of the Haas Corporation inaugurated the company's plastics division, and American Industrial Manufacturing Company, a manufacturer of thermo, plastic, and fiberglass safety helmets, represented LSI's entry into plastics manufacturing. By 1970, LSI had 56 divisions in 17 countries operating in six major business areas — commercial products, fabricated products, avionics, power equipment, systems and services, and real estate. Keys to the company's growth and performance were product diversification; balanced growth, where internal growth matches growth by acquisition; a favorable sales ratio between non-government and government business; a formalized, in-depth planning program; and emphasis on management development. Sales had skyrocketed from $6.5 million at its inception to over $600 million by the close of 1969. Government / Aerospace accounted for 65% of its volume. In its expansion, Lear Siegler had acquired Bangor Punta, which was an early conglomerate manufacturing Piper Aircraft, multiple brands of sailboats, including Ranger Yachts, Smith & Wesson firearms, and other well-known brands.
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