1950-1989
By the end of the 1950s, Sealed Power Corporation, the predecessor to SPX Corporation, was determined to decrease its reliance on any single product. The company implemented a planned program of product diversification.
Going Global
Sealed Power's relatively rapid expansion in the 1950s led to the company's first public offering of common stock in 1955. The company also increased exports, distributing its original and replacement parts in 78 countries by the end of the decade.
Even more significant for the company’s global presence was the opening of plants in Canada and Mexico in the 1960s. The seeds for what would eventually become a global, multi-industry company were planted.
The Company Roster Grows
In 1968, Sealed Power acquired Consolidated Die Cast Corporation (later renamed Contech), a Michigan firm that produced precision die castings. It also purchased another cylinder sleeve plant in Mexico. A few years later, Sealed Power added manufacturers of valve tappets, transmission fluid filters and small alloyed castings to its roster of companies.
It also opened a sealing ring plant in Franklin, Kentucky, a tappet facility in Zeeland, Michigan, and a new piston ring plant in Liege, Belgium, to serve the European market.
Diversification meant that piston rings were making up a smaller percentage of sales than in the early 1960s. Nonetheless, Sealed Power's original engine parts group, which now included sealing rings, valve tappets and transmission filters, in addition to the company's long-standing engine products, still accounted for 42% of sales in 1975.
Entering the Specialty Tools Market
In early 1982, the company acquired Kent-Moore Corporation and embarked on a new direction in terms of the company’s relationship with the auto industry. Kent-Moore dealt directly with the same automakers that Sealed Power had supplied since its inception, but the specialty tools that it produced relied on new automotive models rather than production volume.
Each new car model required a set of specialized tools with which dealers could service the vehicles. The Kent-Moore division worked directly with manufacturers before new vehicles were introduced. Kent-Moore also had significant overseas operations, including a partnership in Japan that allowed Sealed Power to expand its foreign presence.
Sealed Power further expanded its specialty tool product segment by acquiring the Owatonna Tool Company and its subsidiaries in 1985. Owatonna’s subsidiaries further diversified Sealed Power's product line with the addition of high-pressure hydraulic pumps and other equipment for industrial applications, as well as window and door hardware for the home construction industry.
Meet SPX
By 1988, Sealed Power's products ranged from piston rings to door hardware and were sold to a wide range of markets. Diversification had transformed the company from a manufacturer of piston rings with some other interests, to a replacement parts and specialty service tool manufacturer that made piston rings. In recognition of the changing nature of the company, Sealed Power changed its name to SPX Corporation.