$59-Million Cash Deal : EMC Group Buys Units of British Electronics Firm

A Fountain Valley-based unit of ITT Corp. said Friday that it has acquired two units of a British electronics company in a $59-million cash transaction.

ElectroMechanical Components Worldwide (EMC Group), a cable and connector manufacturer, said it has acquired from London-based BICC a coaxial connector manufacturer with operations in the United States, Great Britain and France.

The company, called Sealectro, will provide ITT entry into the $500-million market for specialized coaxial connectors used in satellites, missiles, medical equipment and other high-technology gear, according to Ralph Smith, director of business development at EMC Group.

“This acquisition provides us with an opportunity to compete more significantly in the rapidly growing coaxial connector market,” Smith said.

ITT also acquired a second company, BICC Vero Connectors, based in Great Britain. BICC Vero makes electrical plugs and cables used mostly for consumer electronic products such as personal computers, VCRs and telephones.

The acquisitions will increase EMC Group’s number of employees from about 4,500 to 6,000, Smith said. EMC Group has operations in Orange County, Arizona, Minnesota, Europe, Canada and Japan. It had sales of roughly $650 million in 1987.

In Orange County, EMC Group has two divisions, ITT Cannon Components in Fountain Valley and the Military/Aerospace Division in Santa Ana. The two divisions employ 1,700 people.

Analysts said Friday’s acquisitions fall within a broader corporate strategy on the part of ITT to expand its manufacturing businesses.

ITT, a multinational conglomerate based in New York City, earned $1.02 billion on sales of $19.5 billion in 1987.

ITT derived its largest profit from its Hartford Insurance Group subsidiary. It also owns Sheraton Hotels, pulp and paper mills, an automotive parts manufacturer and a consumer credit business.

In 1986, ITT sold off most of its telecommunications business to Alcatel, a European joint venture under the control of Compagnie Generale d’Electricite, the French state-owned conglomerate. The $2-billion sale removed ITT from its historical roots in international communications.