History (1994): Anacomp to Purchase Graham Magnetics

Anacomp, Inc. (Atlanta, CA) has agreed to purchase Graham Magnetics, Inc. (Bedford, TX), the manufacturer and worldwide marketer of magnetic tape and cartridge products (3490, 3490E, 4mm and 8mm), cleaners and certifiers.

The agreement calls for the exchange of Anacomp common stock valued at approximately $7.6 million for all of the outstanding common stock of Graham Acquisition Corporation, the parent company of Graham Magnetics.

Graham shareholders also may earn up to an additional $7.6 million worth of Anacomp common stock, determined by the future operating results of the combined magnetic business of Anacomp and Graham.

Consummation of the acquisition is subject to the final approval of Anacomp’s board of directors and Graham’s shareholders.

Graham’s worldwide sales in 1993 were approximately $60 million.

Anacomp is also a manufacturer of magnetic tapes and is the WW leader in the micrographics industry. It entered the magnetic media industry by acquiring Xidex in 1988, part of whose activity, diskette manufacturing, was sold to SKC of Korea in 1992. In October 1993, it consolidated all magnetic functions into a single business unit, Anacomp Magnetics, headed by P. Lang Lowrey with the goal of growing its $80 million revenues in annual magnetic media and supplies sales, which represent about 13% of the company’s total sales.

Its 2 manufacturing plants are located in Omaha, NE, and Brynmawr, Wales.

Graham Magnetics had a long and winding road, here are its main steps:

• 1964: Datatape Corp. (TX) is created to manufacture magnetic tapes.
• 1965: Its name is changed into Graham Magnetics Inc.
• 1977: Carlisle Corp. (Cincinnati, OH) buys Graham Magnetics.
• 1985: The half-inch compatible IBM 3480 is launched.
• 1987: Graham U.K. becomes Graham Magnetics Europe, a 100% subsidiary of Carlisle.
• 1988: Graham Magnetics and DEI (San Diego, CA), a manufacturer of QIC cartridges, merge under the name of Carlisle Memory Products Group, Inc.
• 1992: Carlisle Memory Products splits. Graham Magnetics, Inc. is created again. The quarter-inch activity is bought by Verbatim.
• 1994: Anacomp acquires Graham Magnetics.

This article is an abstract of news published on the former paper version of Computer Data Storage Newsletter on issue 76, published on May 1994.