Acquisition of Cross & Trecker

In October of 1991, Giddings and Lewis acquired Cross & Trecker. This acquisition was inclusive of the Cross, Kearney & Trecker and Warner & Swasey brands.

In the 1970's and 1980's Giddings and Lewis underwent a great deal of financial trouble as a result of recession and decreases in the profitability of the manufacturing sector (Giddings & Lewis Inc.). By the 1990's the company was financially stable and an acquisition of this magnitude seemed to be needed to ensure the success of the company into the future. Indeed the acquisition of Cross and Trecker doubled the size of the company. Although Cross & Trecker was losing money, the parts that it produced were a complement to the Giddings & Lewis product line (Giddings & Lewis Inc.).

The article further explains the Giddings & Lewis acquisition of Cross & Trecker made Giddings & Lewis the fourth largest machine tool manufacturer at the time. The article further reports that as a result of its focus on "custom-designed, high-value machines, and its focus on developing into a "total service" automation company, sales for Giddings & Lewis grew to over $500 million in 1992 (Giddings & Lewis Inc.)." This increase was substantial because it occurred only one year after the acquisition.

Current condition of the Company

At the current time, Giddings & Lewis has emerged as a respected company in the industry. It boasts the development and manufacture of several products. Giddings & Lewis have also reverted back to the use of the Kearney & Trecker Name as opposed to the Cross and Trecker name. The company is responsible for the manufacture of boring mills, servomotors, drill grinders, flexible machining systems, measurement machines, and flexible machining systems ("Giddings & Lewis Machine..."). The company operates under several brand names including Bickford, Warner & Swasey, Gisholt, Gray and of course Kearney & Trecker. The company was a subsidiary of Thysennkrupp until 2005 when it was purchased by Maxcor ("Giddings & Lewis Machine...."

There are currently 1,000 employees working for the company. For the year ending 2007 the company had revenue of 93.10 Million ("Giddings & Lewis Machine...."
The company's headquarters is located in Fond du Lac, Wisconsin.

Conclusion

The purpose of this discussion was to provide an overview and history of the Kearney & Trecker Corporation. The research found that the company was established in 1935 in the Midwestern United States. The research indicates that the popularity of the machines the company built is still present today. The research also indicates that many of the parts for these machines are still available and in some cases they have been reconfigured.

The research also focused on the mergers and acquisitions that have taken place over the years. The first merger took place in 1975 when Kearney and Trecker merged with the Cross Company to become Cross & Trecker. Throughout the 1980's the company expanded and got involved in joint ventures in the Asian market. Eventually the company began to have financial difficulties and Giddings and Lewis acquired the company in 1991. The acquisition proved to beneficial for the company and led to substantial growth and profitability. Today, Giddings & Lewis still utilize the Kearney & Trecker brand.