This paper provides a historical overview of Kearney & Trecker, an American machine tool manufacturer founded in 1935. It traces the company's development of widely used machining centers such as the Milwaukee-Matic and Orion lines, its 1975 merger with the Cross Company to form Cross & Trecker, and the subsequent expansion into Asian markets through joint ventures in India and China. The paper then examines Giddings & Lewis's 1991 acquisition of Cross & Trecker, which doubled the acquirer's size and propelled it to become the fourth-largest machine tool manufacturer in the United States. Finally, the paper describes the current condition of the company, including its revenue, workforce, brand portfolio, and competitive landscape.
Kearney & Trecker is a machinery company based in the United States. The purpose of this paper is to explain the history and current condition of the company. The research describes the various mergers and acquisitions that have occurred over the years, tracing how the organization evolved from an independent Midwestern manufacturer into a brand carried by one of the industry's major players.
At one point in the history of American manufacturing, Kearney & Trecker was one of the largest and most successful businesses in the machine tool industry. The company, headquartered in the Midwest, produced several machines used in the manufacturing process. Kearney & Trecker was founded in 1935 and operated under that name until 1975. During that period it created many popular machines, among them the Orion line, which continued in production for many years after Kearney & Trecker dissolved as an independent entity.
According to the article "Retrofit of a Kearney & Trecker MM180," many of Kearney & Trecker's Milwaukee-Matic machining centers remain operative throughout the world. The article reports that the MM180 horizontal machining centers "were sold in the years around 1980 and many are still around, although some might have lost their 'cutting capability' due to difficulties maintaining the old CNC control. They were sold with either the K&T C or D controls" ("Retrofit of a Kearney & Trecker MM180").
Kearney & Trecker machinery was extremely popular for many years and remains so today. Many parts for the machines can still be found, and the retrofitting of Kearney & Trecker machinery — so that it can operate like new — is a common practice. Overall, the company provided the machinery necessary to develop and sustain American industry over several decades. Its founders were entrepreneurs who built a product line that served industry effectively. However, like many machinery companies, the prospect of a merger eventually became inevitable.
In 1975, Kearney & Trecker merged with the Cross Company and the combined entity was renamed Cross & Trecker. Throughout the 1980s the company grew and expanded as part of the Cross organization. For instance, in 1986 the company entered into two joint ventures to expand its presence in Asian markets. The article "C&T Eyeing Taiwan Plant For Low-Cost Tool Parts" explains that these joint ventures involved India and China. The Indian joint venture was formed with Mysore Kirloskar Ltd. and involved the manufacture of two Warner & Swasey Universal (a subsidiary) turning machine lines, in addition to a line developed in India (Giesen). These machines were designed specifically to meet the needs of the Indian market. In China, Cross & Trecker's joint venture involved Kunming Machine Tool and the manufacture of Sheffield's Apollo coordinate measuring machines (Giesen). These machines were sold in the Eastern Bloc and throughout Asia (Giesen).
At the time the company began pursuing joint ventures, some business analysts asserted that Cross & Trecker's interest in Asian partnerships was driven by dissatisfaction with the results of importing machines from original equipment manufacturers (OEMs) in Asia (Giesen). In fact, Kearney & Trecker Corp. of Milwaukee had previously attempted to arrange the import of a low-end line of machining centers, but the effort was unsuccessful due to unacceptable quality results and higher costs caused by currency fluctuations (Giesen).
During this period, Cross & Trecker grew substantially and began to operate on a broader global scale. However, the company was experiencing significant financial difficulty. As the popularity of its products grew and its financial resources diminished, it attracted the attention of Giddings & Lewis, a machine tool company seeking a strategic acquisition.
"1991 acquisition doubles company size"
"Revenue, workforce, and brand portfolio today"
The purpose of this paper was to provide an overview and history of the Kearney & Trecker Corporation. The research found that the company was established in 1935 in the Midwestern United States and that the popularity of the machines it built remains present today. Many parts for these machines are still available, and in some cases the machines themselves have been reconfigured through retrofitting.
The research also documented the mergers and acquisitions that shaped the company's trajectory. The first major transition occurred in 1975, when Kearney & Trecker merged with the Cross Company to become Cross & Trecker. Throughout the 1980s the company expanded and engaged in joint ventures in the Asian market. Financial difficulties ultimately led Giddings & Lewis to acquire the company in 1991. That acquisition proved beneficial, generating substantial growth and profitability within just one year. Today, Giddings & Lewis continues to utilize the Kearney & Trecker brand as part of its portfolio.
You’re 67% through this paper. Sign up to read the remaining 2 sections.
Sign Up Now — Instant Access Already a member? Log inAlways verify citation format against your institution’s current style guide requirements.