Forstmann Little Replaces 3 Top Officers at Lear Siegler

In its third major move since acquiring Lear Siegler in January, Forstmann Little & Co. announced a shake-up Thursday in management at the Santa Monica conglomerate, replacing the top three officers, including President Norman A. Barkeley, with executives from another of the investment firm’s operations.

But Theodore J. Forstmann, general partner of New York-based Forstmann Little, denied rcent speculation that Lear Siegler is earmarked for eventual liquidation. The speculation was sparked by recent divestiture announcements, most notably of the company’s well-regarded aerospace operations.

Barkeley, 57, is leaving after 31 years with Lear Siegler. He is being replaced by Richard W. Vieser, who has been named chairman, president and chief executive.

Vieser previously was president of FL Industries, an electrical products manufacturer that he joined in 1985 after Forstmann Little bought it from ITT Corp. Before that, Vieser, 59, was with McGraw-Edison.

Also leaving are Ronald V. Paolucci, executive vice president, and Laurence A. Thompson, chief financial officer. Paolucci, 60, joined Lear Siegler 31 years ago, while Thompson, 54, has been with the company for 30 years.

In addition, Robert A. Kenkel, former executive vice president of FL Industries, has been named executive vice president and chief operating officer of Lear Siegler.

Forstmann said of the management changes: “These moments are a little difficult, but this was not acrimonious.” All three departing executives will continue to own stock in Lear Siegler, he noted.

Forstmann lauded the executives for guiding Lear Siegler “through a difficult and demanding period of transition” but added that “Ron, Norm and Larry came out of the aerospace world and were used to working in a big public company.” After the divestitures, Lear Siegler will no longer be in the aerospace business, and the environment will be more entrepreneurial, he said.

A Lear Siegler spokesman said Barkeley, Paolucci and Thompson were unavailable for comment.

Since the $2.1-billion leveraged buyout, Lear Siegler has announced plans to sell its aerospace division and its leisure group, including its Smith & Wesson handgun business and its sailboat, farm equipment and recreational vehicle manufacturing operations.

Forstmann Little plans to keep the rest of Lear Siegler, Forstmann said, which consists of 14 disparate businesses that make such things as automobile glass, car seats and ironing boards.

“The divestitures are over,” Forstmann said. “What is here is what we wanted, and we’re going to run with what’s here.”

Forstmann Little opted to keep the 14 businesses because “these things are predictable,” unlike the sometimes uncertain aerospace industry, Forstmann said.

“My job is to take out all the risks I can,” he said. The aerospace group “has some very good companies, but they’re risky businesses.”

The aerospace businesses are being examined by “a very blue-chip list” of potential buyers and the whole process should be over in a few weeks, Forstmann said. The division should fetch at least $150 million to $200 million more than the $700 million predicted by analysts, he said.

In fact, all of the divestitures should bring in enough to pay off the $1.35 billion in bank debt from the buyout, Forstmann said. Forstmann Little invested $800 million of its own money in the deal, he said.