From humble belt buckle maker to huge buns-to-guns empire, then back to earth
TOMKINS has shed several skins to reach its current incarnation as a diversified industrial components manufacturer sitting in the FTSE 250.
From humble beginnings as the FH Tomkins Buckle Company, a maker of belt fasteners, Tomkins grew and floated on the London stockmarket in 1956. Controversial City tycoon Greg Hutchings bought a 23 per cent stake in 1983 and took control a year later. An acquisition splurge followed.
Tomkins picked up assets as disparate as pistol maker Smith & Wesson and baker Ranks Hovis McDougall (RHM), winning the epithet of the “buns-to-guns” company and growing into a global conglomerate with revenues of more than £5bn.
The expansionary phase jolted to a halt when Hutchings resigned amid accusations of taking excessive perks in 2000. RHM was soon sold off for £1.1bn, less than Tomkins had hoped to get. Smith & Wesson was offloaded at a £66m loss a year later.
Chief executive James Nicol joined in 2002 and continued to streamline the business, selling the consumer and industrial parts of its Gates unit.