British Electric Traction
Encyclopedia
British Electric Traction Company Limited, renamed BET plc in 1985, was a large British industrial conglomerate
. It was once a constituent of the FTSE 100 Index
but was acquired by Rentokil in 1996, and the merged company is now known as Rentokil Initial
.
as chairman and Emile Garcke as managing director. It was involved in the electrification of tramways in British towns and cities, and also in Australia
and New Zealand
, for example in Auckland
. From operating trams, BET moved on to manufacturing them with the purchase of Brush Electrical Engineering in 1901. In 1905 a subsidiary was formed to operate motor buses, which became increasingly important to the group as many municipalities were compulsorily acquiring company-owned tram networks in their areas. The last BET tram ran on 4 August 1951, when the Gateshead and District Tramways Company replaced its trams with buses.
and from 1963 by the Transport Holding Company
).
In 1956 BET acquired a 20% interest in United Transport Company, the rump of the old Red & White company, increased to 100% in 1971. United Transport continued with its freight road haulage business (Bulwark Transport Ltd), and also moved into shipping, particularly containers
and tank containers.
The British Transport Commission
(and later the Transport Holding Company
) held minority interests in many of BET's UK bus subsidiaries, and in late 1967 BET sold its UK bus interests to the Transport Holding Company
, to become part of the National Bus Company.
United Transport had passenger transport and freight interests in southern Africa. BET owned and operated Jamaica Omnibus Services, a 600-bus operation in Kingston, Jamaica, until it was nationalised by the Jamaican Government in 1974.
In January 1987 BET briefly reentered the UK bus market, when United Transport formed the Bee Line Buzz Company to operate minibus services in the Manchester
area, and started a similar operation in Preston called Zippy. However, in 1988 United sold Bee Line and Zippy to Ribble Motor Services
(coincidentally once owned by BET).
, which distributed radio and television signals though wired relay networks. BET acquired a controlling interest in 1967, and the remaining 36% in 1983.
When ITV
commercial television started in the UK in 1955, Rediffusion formed Associated-Rediffusion
with Associated Newspapers
with BET's financial backing, and won the London weekday broadcast franchise.
In the beginning, Associated Rediffusion lost money. By the end of 1956 Associated Newspapers sold 80% of its stake back to BET and Rediffusion at a severe loss. Around that same time, Associated Rediffusion struck a very favourable deal with Granada Television
, the franchise holder for weekday broadcasts in the North of England. Granada was also losing money, and lacked the financial resources of BET; the deal guaranteed Granada a certain level of financial security, at the cost of Associated-Rediffusion receiving the vast majority of future profits from their arrangement.
By 1964, when Associated Rediffusion changed its name to Rediffusion London, its efforts had left it sitting on a mountain of cash. But in 1967 the Independent Television Authority
ordered Rediffusion London to enter into a joint arrangement with Associated British Corporation
, the holder of the weekend Midlands
and North of England franchises, to form Thames Television
. As a result of this re-allocation of interests, ABC took a controlling 51% interest in Thames Television, although the profits were split 50/50 between ABC and Rediffusion. Thames Television was given the new weekday London franchise. BET sold its interest in Thames Television in 1985.
Between 1955 and 1968 BET made other acquisitions in the leisure sector, including a controlling interest in Wembley Stadium Ltd, which was sold in 1985.
and Grayston Ltd.
In 1985 BET acquired the crane company G W Sparrow & Sons plc, and combined its craneage interests into a new subsidiary, Grayston White and Sparrow.
In 1950 BET took a 10% interest in Initial. The stake was gradually increased until 1985, when BET took over Initial.
, and also acquired Re-Chem International, which specialised in toxic industrial waste processing.
PLC for £2.5 million in 1985. Rediffusion Simulation was sold in 1988 to Hughes Aircraft
. In 1991 Biffa was sold to Severn Trent Water plc. BET also sold its construction interests.
BET retained the profitable laundry and linen rental businesses, and also the shipping businesses of United Transport.
In 1996 BET was acquired by the much smaller Rentokil, after a hostile take-over bid. The merged company was named Rentokil Initial.
Conglomerate (company)
A conglomerate is a combination of two or more corporations engaged in entirely different businesses that fall under one corporate structure , usually involving a parent company and several subsidiaries. Often, a conglomerate is a multi-industry company...
. It was once a constituent of the FTSE 100 Index
FTSE 100 Index
The FTSE 100 Index, also called FTSE 100, FTSE, or, informally, the footsie , is a share index of the 100 most highly capitalised UK companies listed on the London Stock Exchange....
but was acquired by Rentokil in 1996, and the merged company is now known as Rentokil Initial
Rentokil Initial
Rentokil Initial is a major British business services group. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.-History:...
.
Early history
The company was founded as in 1895 as British Electric Traction Co. Ltd, with Sir Charles Rivers WilsonCharles Rivers Wilson
Sir Charles Rivers Wilson was a British civil servant and financier.Wilson was born in London on 19 February 1831. He studied at Eton College and Balliol College, Oxford. He entered the Treasury in 1856, and was private secretary to the Chancellor of the Exchequer from 1868 to 1873...
as chairman and Emile Garcke as managing director. It was involved in the electrification of tramways in British towns and cities, and also in Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, for example in Auckland
Auckland
The Auckland metropolitan area , in the North Island of New Zealand, is the largest and most populous urban area in the country with residents, percent of the country's population. Auckland also has the largest Polynesian population of any city in the world...
. From operating trams, BET moved on to manufacturing them with the purchase of Brush Electrical Engineering in 1901. In 1905 a subsidiary was formed to operate motor buses, which became increasingly important to the group as many municipalities were compulsorily acquiring company-owned tram networks in their areas. The last BET tram ran on 4 August 1951, when the Gateshead and District Tramways Company replaced its trams with buses.
Post war
Nationalisation of BET's electricity generation and distribution activities took place in 1947 leaving BET with a portfolio of bus companies, a number of miscellaneous investments, and a cash pile. The company embarked on a programme of acquisitions, with particular emphases on transport, leisure and entertainment, printing and publishing, construction and plant hire, textile maintenance and waste management.Transport
From 1949 until 1967 BET continued to be one of the two major bus groups in the UK, alongside the state-owned Tilling Group (owned by the British Transport CommissionBritish Transport Commission
The British Transport Commission was created by Clement Attlee's post-war Labour government as a part of its nationalisation programme, to oversee railways, canals and road freight transport in Great Britain...
and from 1963 by the Transport Holding Company
Transport Holding Company
The Transport Holding Company was a British Government owned company created by the Transport Act 1962 to administer a range of state-owned transport, travel and engineering companies that were previously managed by the British Transport Commission ; it came into existence on 1 January...
).
In 1956 BET acquired a 20% interest in United Transport Company, the rump of the old Red & White company, increased to 100% in 1971. United Transport continued with its freight road haulage business (Bulwark Transport Ltd), and also moved into shipping, particularly containers
Containerization
Containerization is a system of freight transport based on a range of steel intermodal containers...
and tank containers.
The British Transport Commission
British Transport Commission
The British Transport Commission was created by Clement Attlee's post-war Labour government as a part of its nationalisation programme, to oversee railways, canals and road freight transport in Great Britain...
(and later the Transport Holding Company
Transport Holding Company
The Transport Holding Company was a British Government owned company created by the Transport Act 1962 to administer a range of state-owned transport, travel and engineering companies that were previously managed by the British Transport Commission ; it came into existence on 1 January...
) held minority interests in many of BET's UK bus subsidiaries, and in late 1967 BET sold its UK bus interests to the Transport Holding Company
Transport Holding Company
The Transport Holding Company was a British Government owned company created by the Transport Act 1962 to administer a range of state-owned transport, travel and engineering companies that were previously managed by the British Transport Commission ; it came into existence on 1 January...
, to become part of the National Bus Company.
United Transport had passenger transport and freight interests in southern Africa. BET owned and operated Jamaica Omnibus Services, a 600-bus operation in Kingston, Jamaica, until it was nationalised by the Jamaican Government in 1974.
In January 1987 BET briefly reentered the UK bus market, when United Transport formed the Bee Line Buzz Company to operate minibus services in the Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
area, and started a similar operation in Preston called Zippy. However, in 1988 United sold Bee Line and Zippy to Ribble Motor Services
Ribble Motor Services
Ribble Motor Services was a large regional bus operator in the North West of England, based in Preston. The company was started in 1919, and grew to be the largest operator in the region, with a territory stretching from Carlisle to south Lancashire...
(coincidentally once owned by BET).
Leisure and entertainment
In 1947 BET acquired a substantial minority interest in Broadcast Relay Service Ltd, trading as RediffusionRediffusion
Rediffusion was a business which distributed radio and TV signals through wired relay networks. The business gave rise to a number of other companies, including Associated-Rediffusion, later known as Rediffusion London, one of the first companies to win a terrestrial ITV franchise in the UK...
, which distributed radio and television signals though wired relay networks. BET acquired a controlling interest in 1967, and the remaining 36% in 1983.
When ITV
ITV
ITV is the major commercial public service TV network in the United Kingdom. Launched in 1955 under the auspices of the Independent Television Authority to provide competition to the BBC, it is also the oldest commercial network in the UK...
commercial television started in the UK in 1955, Rediffusion formed Associated-Rediffusion
Associated-Rediffusion
Associated-Rediffusion, later Rediffusion, London, was the British ITV contractor for London and parts of the surrounding counties, on weekdays between 1954 and 29 July 1968. Transmissions started on 22 September 1955.-Formation:...
with Associated Newspapers
Associated Newspapers
Associated Newspapers is a large national newspaper publisher in the UK, which is a subsidiary of the Daily Mail and General Trust. The group was established in 1905 and is currently based at Northcliffe House in Kensington...
with BET's financial backing, and won the London weekday broadcast franchise.
In the beginning, Associated Rediffusion lost money. By the end of 1956 Associated Newspapers sold 80% of its stake back to BET and Rediffusion at a severe loss. Around that same time, Associated Rediffusion struck a very favourable deal with Granada Television
Granada Television
Granada Television is the ITV contractor for North West England. Based in Manchester since its inception, it is the only surviving original ITA franchisee from 1954 and is ITV's most successful....
, the franchise holder for weekday broadcasts in the North of England. Granada was also losing money, and lacked the financial resources of BET; the deal guaranteed Granada a certain level of financial security, at the cost of Associated-Rediffusion receiving the vast majority of future profits from their arrangement.
By 1964, when Associated Rediffusion changed its name to Rediffusion London, its efforts had left it sitting on a mountain of cash. But in 1967 the Independent Television Authority
Independent Television Authority
The Independent Television Authority was an agency created by the Television Act 1954 to supervise the creation of "Independent Television" , the first commercial television network in the United Kingdom...
ordered Rediffusion London to enter into a joint arrangement with Associated British Corporation
Associated British Corporation
Associated British Corporation was one of a number of commercial television companies established in the United Kingdom during the 1950s by cinema chain companies in an attempt to safeguard their business by becoming involved with television which was taking away their cinema audiences.In this...
, the holder of the weekend Midlands
English Midlands
The Midlands, or the English Midlands, is the traditional name for the area comprising central England that broadly corresponds to the early medieval Kingdom of Mercia. It borders Southern England, Northern England, East Anglia and Wales. Its largest city is Birmingham, and it was an important...
and North of England franchises, to form Thames Television
Thames Television
Thames Television was a licensee of the British ITV television network, covering London and parts of the surrounding counties on weekdays from 30 July 1968 until 31 December 1992....
. As a result of this re-allocation of interests, ABC took a controlling 51% interest in Thames Television, although the profits were split 50/50 between ABC and Rediffusion. Thames Television was given the new weekday London franchise. BET sold its interest in Thames Television in 1985.
Between 1955 and 1968 BET made other acquisitions in the leisure sector, including a controlling interest in Wembley Stadium Ltd, which was sold in 1985.
Construction and plant hire
BET acquired Eddison Plant Ltd in 1949, and expanded into construction after the sale of its bus interests in 1968. It acquired Boulton & Paul LtdBoulton & Paul Ltd
Boulton & Paul was a British general manufacturer from Norwich that became involved in aircraft manufacture.Jeld Wen Inc, bought Boulton & Paul Boulton & Paul was a British general manufacturer from Norwich that became involved in aircraft manufacture.Jeld Wen Inc, bought Boulton & Paul Boulton &...
and Grayston Ltd.
In 1985 BET acquired the crane company G W Sparrow & Sons plc, and combined its craneage interests into a new subsidiary, Grayston White and Sparrow.
Laundry and linen rental
BET entered the laundry business in 1934, and in 1935 acquired an interest in Advance Linen Services, which became a subsidiary in 1955.In 1950 BET took a 10% interest in Initial. The stake was gradually increased until 1985, when BET took over Initial.
Waste management
In 1971 BET acquired BiffaBiffa
Biffa Waste Services is one of the UK's largest integrated waste management businesses, providing collection, landfill, recycling and special waste services to local authorities and industrial and commercial clients.-History:...
, and also acquired Re-Chem International, which specialised in toxic industrial waste processing.
Divestment and sale
In the 1980s conglomerates such as BET fell out of favour, and BET extracted itself from some business sectors. Its interests in Thames Television were sold in 1985, and the rest of Rediffusion soon followed. BET sold its 75 per cent shareholding in Humphries Holdings PLC to Lee InternationalLee International
-Early history:Lee Electric Ltd was incorporated as a business in 1961 by John Lee and Benny Lee , two film lighting electricians...
PLC for £2.5 million in 1985. Rediffusion Simulation was sold in 1988 to Hughes Aircraft
Hughes Aircraft
Hughes Aircraft Company was a major American aerospace and defense contractor founded in 1932 by Howard Hughes in Culver City, California as a division of Hughes Tool Company...
. In 1991 Biffa was sold to Severn Trent Water plc. BET also sold its construction interests.
BET retained the profitable laundry and linen rental businesses, and also the shipping businesses of United Transport.
In 1996 BET was acquired by the much smaller Rentokil, after a hostile take-over bid. The merged company was named Rentokil Initial.