BTR plcwas a Britishmultinationalindustrialconglomeratecompany. It was headquartered inLondon,England.

BTR plc
Company typePublic limited company
IndustryConglomerate
PredecessorThe Leyland & Birmingham RubberEdit this on Wikidata
Founded1924
Defunct1999
FateMerged withSiebe
SuccessorInvensys
HeadquartersLondon,England
Key people
Revenue£10 billion (1995)[1]
Number of employees
~130,000 (1995)[1][2]
Subsidiaries

The company was originally founded in 1924 as the British Goodrich Rubber Co. Ltd as asubsidiaryof the American rubber specialistB.F.Goodrich Company.Ten years later, it became the British Tyre & Rubber Co. Ltd after Goodrich sold its stake in the business; it moved intosynthetic rubberandplasticsduring the 1940s and withdrew from tyre production in 1956, adopting the name BTR Ltd around the same timeframe. Management pursued a strategy of diversification and rationalisation that lasted into the mid 1960s.

During late 1966, BTR came under the control of a new central management team, whichSir Owen Greentook the lead of in the following year. Green pursued a strategy of targeted growth towards opportunities that quickly would become lucrative. New subsidiaries would be created and numerous acquisitions would be undertaken by Green and later byAlan Jackson.This approach included multiplehostile takeoversby BTR, though several such bids failed, forPilkington,Norton Abrasives,andHawker Siddeley.

BTR was listed on theLondon Stock Exchange.During the 1990s, BTR accumulated a considerable debt burden and divested many of its divisions during restructuring efforts. In 1999, BTR merged withSiebeto form BTR Siebe, later renamedInvensys.Invensys was bought by and absorbed intoSchneider Electricin 2014.

History

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Early years

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BTR can trace its origins back to 1924, at which point the American rubber specialistB.F.Goodrich Companyformed a UK-based subsidiary, British Goodrich Rubber Co. Ltd. During 1934, Goodrich opted to sell the majority of its shares in the company, which promptly changed its name to the British Tyre & Rubber Co. Ltd. Shortly thereafter, it was successfullyfloatedon theLondon Stock Exchange.[3]The company primarily focused on the manufacture of tyres for road vehicles, conveyor belts, and industrial hoses. It benefitted considerably from several innovations developed during theSecond World War,such assynthetic rubberandplastics.[3]By 1955, British Tyre & Rubber was one of eleven tyre manufacturers operating in the UK.[4]

During 1956, the company opted to cease production of tyres in favour of its other activities as this business unit was becoming increasingly unprofitable.[3]To reflect the company's changing product line, its name was changed to BTR Limited. The late 1950s and early 1960s were marked by efforts towards diversification and rationalisation, however, BTR achieved poor fiscal performance up until the mid-1960s.[3]

Owen Green and subsequent years; acquisitive industrial group

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During late 1966, BTR came under the control of a new central management team; the prevailing philosophy was stated to be "growth is the goal, profit is the measure, security is the result".[3]Furthermore, it was posited that, for the company to be strong and lucrative, it would need to operate on an international basis. To this end, BTR, through both acquisition and establishment, established numerous overseas operations; while in-house investment was favoured, external acquisitions were pursued where it was through to result in greater growth opportunities.[3]This process was encouraged by the British government, which supported BTR's amalgamation with similar companies such as the Leyland and Birmingham Rubber Company.[3]

Between 1967 and 1993, BTW was dominated by SirOwen Green,who initially served as its managing director (until 1986) and then as its chairman.[5]Green's principal focus was onoperating marginsandcash flow,which arguably came at the cost of long-term investment.[6]

By 1982, BTR had acquired a large number of companies in the United Kingdom, the US, Canada, Australia, South Africa and Germany.[3]These ventures ranged into various fields of work, from extracting raw materials such as natural and synthetic rubbers, textiles and chemicals, toinsurance,pensions,corporate planning, international taxation and legal matters. The majority of BTR's product line were sold to other manufacturers and businesses.[3]The company did not have a large centralisedresearch and developmentdivision, a factor that led to the company being criticised for not valuing a long term perspective.[3][7]

Acquisitions continued through the 1980s; larger companies included theTilling Groupin 1983, andDunlop Holdings plcin 1985.[8]The Dunlop road tyre business was immediately sold toSumitomo Rubber Industries.[9]During late 1986, BTR launched ahostile takeoverbid forPilkington,a leading manufacturer of high quality glass with operations worldwide, which it valued at $1.64 billion.[7]Pilington's management rejected the offer and fought a successful defensive campaign with politicians taking sides in the matter, thus BTR was compelled to withdraw its offer in February 1987.[10][11]Three years later, BTR withdrew from another failed hostile takeover, this time ofNorton Abrasives,which it had valued at $1.643 billion.[12][13]

In 1988, BTR purchasedSchlegel Corporationthrough a subsidiary. Schlegel had manufacturing facilities for door and window seals and related products in twelve countries.[14]Schlegel made automobile and building products in Europe through its subsidiaries Schlegel UK and Schlegel GmbH.[15]Following the purchase, BTR decided to transfer the Schlegel UK and Schlegel GmbH subsidiaries from Schlegel Corporation to itself.[14]There was a dispute over how the transfer should be valued for tax purposes, with BTR valuing the Schlegel UK and Schlegel GmbH subsidiaries at $21.8 million and $9.4 million, while theInternal Revenue Servicevalued them at $49.1 million and $13.2 million.[15] During the early to mid 1990s, underAlan Jackson’s stewardship as CEO, BTR controlled over 1,500 subsidiary companies in over 60 different countries. This was largely due to the takeover bids that were led by Green and, later, by Jackson.[6]

In 1992,Hawker Siddeleywas acquired by BTR in exchange for£1.5bn despite opposition from Hawker Siddeley's board.[16][17]This was the first large hostile takeover of a company that Jackson had completed in his role as managing director. During that same year, he also purchased two smaller companies; Rockware, the UK’s leading class manufacturer and Pirreli, a sealing company. These were bought forA$400 andA$200 million respectively.[18][19][6]

In 1995, BTR purchased Australian platics manufacturerNylex.[20]This company during the late 1980s provided 41% of BTR’s profits and kickstarted BTR’s growth in the emerging markets ofSoutheast Asia.This was also due to the Malaysian wing of Nylex, Berhard.[21][22][6]

One of the major ways BTR grew in size and in profits, was its continual takeover of other companies throughout the world. This led it to be amultinationalconglomerate.Moreover, the company also gained further profits by investing large amounts of money in investing in capital and operations, as well as the methods used by Green and later Jackson, of ruthless cost-cutting. This included laying off staff and dispensing with unprofitable businesses. It was these methods that have been credited with the success of the company.[23]Nevertheless, this approach also was perhaps BTR's greatest weakness, which came ahead in the late 1990s following the retirement of both Green and Jackson, at which point debt had risen to high levels. Restructuring efforts failed to revive the company, in which, became increasingly inefficient and unprofitable in various manufacturing sections.[1]

Later years

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BTR's activities in late 1990s was marked by a series of divestments, at which point the company was headed by Ian Strachan.[24]During 1994, less than three years after arranging to acquire the company, BTR opted to spin offHawker Siddeley Canadavia a flotation on theToronto Stock Exchange,swapping its 59 per cent holding for around £65 million.[25]Similarly, after less than a decade of ownership, the company opted to sell Rockware.[26][27]

Between 1996 and 1998, BTR sold the remaining Dunlop companies, and exited the aerospace sector entirely.[28][29]In November 1997, UniPoly S.A, bought 32 companies from BTR, including the Schlegel Sealing and Shielding Group, at a reported cost of roughly $867 million.[30]The deal was amanagement buyoutin which UniPoly Group was formed to take over most of the rubber products business of BTR plc.[31]During these years, BTR was organised in the following businesses areas: Engineering, Packaging, Materials, Building products, Polymers.[32]

In 1999, BTR merged withSiebeto form BTR Siebe, which was renamedInvensys.The last chief executive of BTR, Ian Strachan, became the initial chief executive of Invensys following the merger.[33][34]The merger has been viewed as a final admission that BTR's business model could no longer fulfil changes in customer expectations.[35]

Company heads

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The company heads of BTR plc are only listed following the name change of BTR in 1956 until the takeover of BTR in 1999.

Chairmen of BTR Limited
Order Chairman Period Reference
1 Unknown person 1956 – 1969
2 Sir David Nicolson 1969 – 1984 [36]
3 Sir Owen Green 1984 – 1993 [37]
4 Sir Norman Ireland 1993 – 1995 [38]
5 Elwyn Eilledge 1995 – 1999 [39]
Managing directors / CEOs of BTR Limited
Order MDs / CEOs Period Reference
1 Unknown person 1956 – 1967
2 Sir Owen Green 1967 – 1984 [37]
3 Sir Norman Ireland 1984 – 1987 [40]
4 John Cahill 1987 – 1990 [41]
5 Alan Jackson 1990 – 1996 [42]
6 Ian Strachan 1996 – 2000 [43]

See also

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References

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  1. ^abcAtkin, Dan (28 October 1995). "The wizard of Oz takes his final bow".The Daily Telegraph.
  2. ^Encyclopedia. “BTR Plc | Encyclopedia,” 2013.https:// encyclopedia /books/politics-and-business-magazines/btr-plc.
  3. ^abcdefghijCompetition Commission report 1982[usurped]
  4. ^Competition Commission Report c. 1955para 68.
  5. ^Sheikh, Saleem; Rees, William (5 March 1995).Corporate Governance & Corporate Control.Cavendish.ISBN9781874241485– via Google Books.
  6. ^abcdReier, Sharon (20 July 1993). "The Man From Melbourne".Financial World– Europe's CEO of the Year.ProQuest225629264.
  7. ^ab"Pilkinton Bid Made By BTR".The New York Times.21 November 1986.
  8. ^"Dunlop and BTR Reach an Accord".New York Times.9 March 1985.
  9. ^"Dunlop Stake For Sumitomo".The New York Times.21 November 1986.
  10. ^"Btr And Pilkington Bros".Hansard.15 January 1987.
  11. ^"Pilkington wins its war of independence".Building.1 January 2006.
  12. ^"BTR launches unsolicited cash bid for Norton".United Press International. 16 March 1990.
  13. ^"Company News: After Defeat, BTR Sells Norton Stock".The New York Times.27 April 1990.
  14. ^abPratt, Shannon P.; Grabowski, Roger J. (26 October 2010).Cost of Capital in Litigation: Applications and Examples.John Wiley & Sons. pp. 86–87.ISBN978-0-470-94491-2.Retrieved20 July2015.
  15. ^abFishman, Jay E. (28 March 2013).Standards of Value: Theory and Applications.John Wiley & Sons.pp. 49–50.ISBN978-1-118-22540-0.Retrieved20 July2015.
  16. ^Prokesch, Steven (21 September 1991)."BTR Bids $2.55 Billion for Hawker Siddeley".The New York Times.
  17. ^Holligan, Jane (20 September 1991)."BTR's $2.6 billion bid rejected by Hawker Siddeley board".United Press International.
  18. ^"History".Brush Traction.Archived fromthe originalon 10 February 2009.
  19. ^Connon, Heather (13 July 1992)."BTR pays 60m pounds for Pirelli firms".The Independent.
  20. ^"Jackson aims for BTR Nylex on the cheap".Australian Financial Review.7 August 1995.Retrieved2 January2022.
  21. ^"International Briefs; BTR to Buy Out Unit For $3.2 Billion".The New York Times.Associated Press. 22 July 1995.
  22. ^Underhill, Marion (6 December 1990)."BUSINESS PEOPLE; Australian to Become Head of BTR of Britain".The New York Times.ISSN0362-4331.Retrieved31 January2023.
  23. ^Nicholas, Katrina (21 February 2009). "Nylex: from household name to oblivion". Australian Financial Review.
  24. ^"BTR opts for pounds 2.8bn disposal programme".The Independent.11 September 1997.
  25. ^Hotten, Russell (19 January 1994)."BTR to spin off Hawker Siddeley in Canada: Toronto flotation valued at pounds 65m part of strategy to concentrate on core manufacturing".The Independent.
  26. ^Mulqueen, Eibhir (1 April 1999)."Ardagh meeting approves Rockware purchase".The Irish Times.
  27. ^Christie, P J (Winter 1995)."The Acquisition Of Rockware Flaconnage By Stolzle Oberglas".britglass.org.uk.
  28. ^Larsen, Peter Thal (31 July 1998)."BTR hives off aero divisions".The Independent.Retrieved22 October2011.
  29. ^BTR sells South African tyre subsidiary[dead link]
  30. ^"Unipoly S.A. Acquires Four BTR Product Divisions in 515 Million British Pound Management Buyout".10 November 1997. Archived fromthe originalon 5 March 2016.Retrieved20 July2015.
  31. ^"UniPoly executives leave company".Rubber News.22 June 2001.Retrieved20 July2015.
  32. ^Jones, Dow (12 September 1997)."INTERNATIONAL BRIEFS; BTR to Sell Several Divisions".The New York Times.
  33. ^"Siebe and BTR to merge into $24bn automotion giant".Managing Automotion. 1 January 1999. Archived fromthe originalon 24 July 2011.
  34. ^Calian, Sara (24 November 1998)."Siebe, BTR Agree to Merge in Deal Worth $5.67 Billion".Wall Street Journal– via wsj.
  35. ^Alexander, Marcus; Korine, Harry (December 2008)."When You Shouldn't Go Global".Harvard Business Review.
  36. ^"OBITUARY: Sir David Nicolson".The Independent.28 July 1996.
  37. ^ab"Obituary: Sir Owen Green". The Daily Telegraph. 29 June 2017. p. 31.
  38. ^"BTR Names Auditor Chairman".The Independent.27 September 1995.
  39. ^"Honours for the Profession".Accountancy Daily. 2023.
  40. ^"BTR Names Auditor Chairman".The Independent.27 September 1995.
  41. ^"BUSINESS PEOPLE; Australian to Become Head of BTR of Britain".The New York Times.6 December 1990.Retrieved23 July2023.
  42. ^"Retirement of Chairman / Appointment of Chairman".Austrim Nylex.27 April 2001.
  43. ^"Strachan Appointed BTR Chief".The Herald.20 January 1995.
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