Derald Ruttenberg

Derald H. Ruttenberg (17 February 1916 – 19 September 2004) was a lawyer who became a deal maker, organizing large industrial mergers. He arranged the merger of Studebaker and Worthington Corporation, and for some time ran the combined Studebaker-Worthington. He provided the financing for the Derald H. Ruttenberg Cancer Center at Mount Sinai Hospital, New York.

Early years

He was born on 17 February 1916 in Lafayette, Indiana.
He studied philosophy at the University of Wisconsin, graduating in 1937.
He went on to the Yale Law School where he earned an LL.B in 1940, then earned a business degree from the Harvard University Graduate School of Business in 1942.
He served in the U.S. Air Force during World War II (1939–1945) and served in Europe in the U.S. Strategic Bombing Survey.
He received an honorable discharge as a lieutenant in 1945.

Early career

After being discharged, he practiced law in Chicago.
He then became owner of a number of privately held industrial companies in the American Midwest.
He borrowed the money to make his purchases, using methods that foreshadowed leveraged buy-out firms.
He avoided publicity and focused on basic industries where he saw hidden potential, such as foundries and private manufacturers.
In the 1960s and 1970s Ruttenberg was one of the larger players during a wave of corporate acquisitions,
and built up a large and liquid personal portfolio.
He moved to New York where he became chairman of I-T-E Circuit Breaker in 1967.

Studebaker-Worthington

In 1967 Ruttenberg arranged the merger between Studebaker and Worthington.
He took the risk of buying Studebaker despite the liabilities that came with it, including dealer warranties and union agreements. He saw that Onan generators and STP engine additives were healthy businesses. The large tax loss was also valuable. Worthington was expected to continue to earn steady profits, but could use the tax loss to avoid paying taxes.
The combined 1966 gross revenues of the two companies had been $672 million, with net income of $24.5 million.
Studebaker was acquired by Wagner Electric, which in turn was merged with Worthington Corporation to create Studebaker-Worthington.

In January 1969 Ruttenberg became president and chief executive officer. He was determined to weed out all poorly performing units.
He pushed the operating subsidiaries to maximize returns to shareholders, reportedly demanding returns as high as 25% - 30%.
The Alco Products Division, a railway locomotive manufacturer, became a victim of Ruttenberg's drive for profit. The locomotive factory in Schenectady, New York, was closed in 1969, and White Motor Corporation purchased the diesel engine business in February 1970.
Early in 1969 Studebaker-Worthington floated STP as a public corporation, listed on the American Stock Exchange.
Worthington had acquired the air conditioning manufacturer Climatrol Air Coils Ltd. of Oakville, Ontario, in 1966.
It was sold to Fedders in November 1970. Fedders was mainly interested in the brand, product designs and sales force, and shut down the manufacturing facilities.

Ruttenberg became chairman and chief executive officer of Studebaker-Worthington in 1971.
McGraw-Edison purchased Studebaker-Worthington in 1978.
Ruttenberg left the company in 1980.
McGraw-Edison was in turn acquired by Cooper Industries in 1985.

Later career

While at Studebaker-Worthington, Ruttenberg was a member of the Deepdale Country Club on Long Island, where he played golf.
One of his golfing partners was Ted Forstmann, who arranged for Ruttenberg to meet Henry Kravis

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