The proposed sale of Federal-Mogul Corp. to Bendix Corp. shouldn’t have any effect on the product or local operation of the St. Johns F-M plant, officials said Monday. Chief Officers of the two firms announced an agreement in Detroit last Thursday whereby Bendix will acquire F-M under a stock exchange proposal. The deal is subject to stockholder approval.
Plants in Michigan, Ohio, Indiana and Illinois are involved. A price tag of $260 million was placed on the deal.
Edward Idzkowski, plant manager of the 600 employee St. Johns plant, said Monday the sale should not have any effect at all on the St. Johns operation.
“WE WOULD become an active subsidiary of Bendix and would probably have all the independence we have now,” he said. “Everything we’ve gotten back from our corporation people indicates this.”
“St. Johns as such is a very profitable plant. In fact, we’re one of the better ones in the whole organization, so there should be no occasion to change our product.”
The proposal for the sale is subject to approval of directors of both companies, the obtaining of a favorable tax ruling and approval of the transaction by the shareholders of both companies.
Bendix Corp., once known for automatic washing machines which it no longer produces, is a billion-dollar-plus operation today in the field of aerospace, automotive and industrial products. Federal-Mogul produces ball bearings and pistons.
IF THE SALE IS approved, the acquisition would be effected by the issuance of 0.6 shares of Bendix series “A” $3 cumulative convertible preferred stock for each share of Federal-Mogul common stock and 1.335 shares of Bendix series “A” $3 cumulative convertible preferred stock for each share of Federal-Mogul preferred stock outstanding at the time of the acquisition.
There are about 5.2 million shares of Federal-Mogul common stock and 120,000 shares of preferred stock outstanding.
Each share of Bendix preferred stock has a stated value of $7.50, an annual dividend of $3 and is convertible at any time into 1.5 shares of Bendix common stock. The preferred stock is callable at any time after June 30, 1975.
Federal-Mogul would be operated as a wholly owned subsidiary after the acquisition is completed.
Federal-Mogul sales in 1966 were $241,059,000 and were $170,775,000 for the first nine months of 1967. Net earning for 1966 were $17,002,000 or $3.28 a share and the 1967 nine months earnings (unaudited) were $9,535,000 or $1.78 per share.
BENDIX FISCAL 1967 net sales, royalties and other operating income totaled $1,274,022,632 and net earnings were $43,735,568 or $3.33 a common share.
The St. Johns Federal-Mogul plant was established in 1946 and began operations early in 1947 in a renovated structure formerly owned by the late George H. Chapman on North Mead Street. In 1947 there were 34 persons on the company’s payroll.
There have been six building expansions, the latest begun in 1964 adding 120,000 square feet of manufacturing and office space, nearly doubling the size of the plant. The last expansion cost was figured at about $3 million.
- December 21, 1967
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