Reil buys Allegheny

Press, 10 March 1987, Page 40

Reil buys Allegheny

Some large unlisted companies are being affected by the selling of overseas assets by Allegheny International, of Pittsburgh, the big American company. Reil Corporation, Ltd, of Australia, in which Chase has a 40 per cent stake, has bought the Sunbeam and Vieta group from Allegheny. This group, with a large branch at Palmerston North, makes Sunbeam electrical equipment and Vieta lawnmowers. This more than doubles the size of Reil, formed from the restructured Hygenic Lily, Ltd, group three monthsago. That

purchase included Lilypak New Zealand, which is important in this disposable packaging industry. Allegheny still owns Bryant and May matches and Wilkinson Sword in New Zealand. The Sunbeam purchase takes Reil’s sakes from about sAustl2oM a year to S3OOM. Another important arm of Reil is Lamson Engineering, Australia, Pty, Ltd, the maker of air-tube message systems. Reil has recruited for Lilypac Mr Bob Mansfield, formerly chief executive of McDonald’s Australia. Mr Mansfield

said there had been many changes in Lilypac Australia and new equipment would be installed. Lilypac in New Zealand was operating profitably. In Sunbeam, production facilities between the two countries will be rationalised. Reil Corporations began with Mr Philip Cave’s Equico Finance Pty, Ltd, which became Reil. Reil’s investmerit criteria are that target companies must be involved in Australasian manufacturing, realistically priced, and with room for improvement in management and efficiency;

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