Farrel Corporation
Encyclopedia
Farrel Corporation is a privately held corporation based in Ansonia, Connecticut
. Today, they manufacture process equipment for the plastics industry, and employ roughly 300 people
by Almon Farrel. During the American Civil War
, they produced bayonets and cannon
barrels. In 1927, Farrel Foundry merged with Birmingham Iron Foundry of Derby, Connecticut
. During the 1920s, Farrel-Birmingham began creating gears for use in US Navy propulsion systems in Buffalo, New York
. In 1941, the Navy contracted with Farrel-Birmingham and General Motors
to begin manufacturing a rapid reversal gear system that would allow vessels to reverse engines without first slowing down. In 1942, Farrel-Birmingham
received the E award from the Navy for their efforts.
In 1963, Farrel Birmingham adopted the current name of Farrel Corporation and began manufacturing process equipment for plastic plants. During the 1970s and 1980s, Farrel went through several owners. In 1986, a group of private equity investors including Rolf Liebergesell, Charles S. Jones and Alberto Shaio, acquired the company from Emhart Corporation (which later merged with Black & Decker
) for $1.0 million plus assumption of debt. At the CEO’s direction, Charles S. Jones’s firm divested the Roll Grinder products division, the Railroad products division, the steel extrusion division, and a 25% equity stake in the Italian Pomini enterprise. Then, Farrel, under Liebergesell’s direction, focused exclusively on its core operations of plastic and rubber equipment. By 1991, under the leadership of Al Shaio, head of sales, revenue doubled to $105 million, with $5.4 million in operating income.
In 1992, Charles S. Jones led Farrel’s IPO on NASDAQ
, underwritten by Paine Webber
and First Albany for a pre-money valuation
of $52.1 million, giving the original investors a 52.1x return in less than six years, with an IRR of 92.1%. Following the acquisition, Charles S. Jones led the acquisition of Farrel’s major competitors, including Rockstedt OHG in Germany, Francis Shaw Rubber Machinery Ltd. and PRC Fabrications Ltd in the United Kingdom and Skinner Engine in Erie, Pennsylvania
.
In 2009, Farrel was acquired by the HF Machinery Group division of L. Possehl & Co., mbH of Lubeck, Germany. Today, the Company is led by Alberto Shaio, who was part of the initial investor group.
Ansonia, Connecticut
Ansonia is a city in New Haven County, Connecticut, United States, on the Naugatuck River, immediately north of Derby and about northwest of New Haven. The population was 19,249 at the 2010 census. The ZIP code for Ansonia is 06401. The city is serviced by the Metro North railroad...
. Today, they manufacture process equipment for the plastics industry, and employ roughly 300 people
History
Farrel was founded in 1848 as a foundryFoundry
A foundry is a factory that produces metal castings. Metals are cast into shapes by melting them into a liquid, pouring the metal in a mold, and removing the mold material or casting after the metal has solidified as it cools. The most common metals processed are aluminum and cast iron...
by Almon Farrel. During the American Civil War
American Civil War
The American Civil War was a civil war fought in the United States of America. In response to the election of Abraham Lincoln as President of the United States, 11 southern slave states declared their secession from the United States and formed the Confederate States of America ; the other 25...
, they produced bayonets and cannon
Cannon
A cannon is any piece of artillery that uses gunpowder or other usually explosive-based propellents to launch a projectile. Cannon vary in caliber, range, mobility, rate of fire, angle of fire, and firepower; different forms of cannon combine and balance these attributes in varying degrees,...
barrels. In 1927, Farrel Foundry merged with Birmingham Iron Foundry of Derby, Connecticut
Derby, Connecticut
Derby is a city in New Haven County, Connecticut, United States. The population was 12,391 at the 2000 census. With of land area, Derby is Connecticut's smallest municipality.The city has a Metro-North railroad station called Derby – Shelton.-History:...
. During the 1920s, Farrel-Birmingham began creating gears for use in US Navy propulsion systems in Buffalo, New York
Buffalo, New York
Buffalo is the second most populous city in the state of New York, after New York City. Located in Western New York on the eastern shores of Lake Erie and at the head of the Niagara River across from Fort Erie, Ontario, Buffalo is the seat of Erie County and the principal city of the...
. In 1941, the Navy contracted with Farrel-Birmingham and General Motors
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
to begin manufacturing a rapid reversal gear system that would allow vessels to reverse engines without first slowing down. In 1942, Farrel-Birmingham
received the E award from the Navy for their efforts.
In 1963, Farrel Birmingham adopted the current name of Farrel Corporation and began manufacturing process equipment for plastic plants. During the 1970s and 1980s, Farrel went through several owners. In 1986, a group of private equity investors including Rolf Liebergesell, Charles S. Jones and Alberto Shaio, acquired the company from Emhart Corporation (which later merged with Black & Decker
Black & Decker
Black & Decker Corporation is a corporation based in Towson, Maryland, United States, that designs and imports power tools and accessories, hardware and home improvement products, and technology based fastening systems...
) for $1.0 million plus assumption of debt. At the CEO’s direction, Charles S. Jones’s firm divested the Roll Grinder products division, the Railroad products division, the steel extrusion division, and a 25% equity stake in the Italian Pomini enterprise. Then, Farrel, under Liebergesell’s direction, focused exclusively on its core operations of plastic and rubber equipment. By 1991, under the leadership of Al Shaio, head of sales, revenue doubled to $105 million, with $5.4 million in operating income.
In 1992, Charles S. Jones led Farrel’s IPO on NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
, underwritten by Paine Webber
Paine Webber
Paine Webber and Company was an American stock brokerage and asset management firm that was acquired by the Swiss bank UBS AG in 2000. The company was founded in 1880 in Boston, Massachusetts, by William Alfred Paine and Wallace G. Webber. Operating with two employees, they leased premises at 48...
and First Albany for a pre-money valuation
Pre-money valuation
A pre-money valuation is a term used in private equity or venture capital that refers to the valuation of a company or asset prior to an investment or financing....
of $52.1 million, giving the original investors a 52.1x return in less than six years, with an IRR of 92.1%. Following the acquisition, Charles S. Jones led the acquisition of Farrel’s major competitors, including Rockstedt OHG in Germany, Francis Shaw Rubber Machinery Ltd. and PRC Fabrications Ltd in the United Kingdom and Skinner Engine in Erie, Pennsylvania
Erie, Pennsylvania
Erie is a city located in northwestern Pennsylvania in the United States. Named for the lake and the Native American tribe that resided along its southern shore, Erie is the state's fourth-largest city , with a population of 102,000...
.
In 2009, Farrel was acquired by the HF Machinery Group division of L. Possehl & Co., mbH of Lubeck, Germany. Today, the Company is led by Alberto Shaio, who was part of the initial investor group.