Racal Company Overview and History

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Racal was founded in 1959 by Sir Frank McCormick. The company started as a small electronics business in London.

Racal's early focus was on producing electronic equipment, including audio and video recording devices.

In the 1960s, Racal began to explore the field of telecommunications, developing equipment for the British government.

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Company History

Racal's story began 61 years ago with two young men, Raymond Frederick Brown and George Calder Cunningham, who formed Racal Engineering Ltd in 1951. They coined the name Racal by compounding their Christian names.

In 1952, production started in a small factory at Isleworth, with an initial order for 1000 carrier receivers. This order helped the company get off to a good start.

By Spring 1961, Racal had a payroll of 700 and an annual turnover approaching the £2 million mark. This rapid expansion was a testament to the company's dynamism and entrepreneurial spirit.

Here are some key milestones under Harrison's leadership:

  • Negotiation of a British Army battlefield radio contract
  • Merging with British Communications Corporation
  • Buying Decca Radar in 1980
  • Buying the British Rail Telecommunications network
  • Creating and spinning-out the Vodafone mobile phone network
  • Selling Racal Telecom to Global Crossing
  • Selling Racal's remaining defence and industrial electronics divisions to Thomson-CSF of France

The Birth

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Racal's journey began 61 years ago, in an edition of Electronics Weekly from April 26, 1961, with a story about the company's humble beginnings.

The dynamism behind Racal's rapid expansion came from two young men, Raymond Frederick Brown and George Calder Cunningham, who were partners in a one-room consultancy business.

Their consultancy focused on communications, an area where both had gained experience during the war.

They had to negotiate the supply of equipment, but post-war years made it difficult to obtain.

To address this issue, they decided to manufacture the equipment themselves.

In 1951, they formed Racal Engineering Ltd by compounding their Christian names, creating the word Racal.

The company started with just five people on the payroll and zero production.

Production finally began in January 1952 in a small factory at Isleworth, thanks to an initial order for 1000 carrier receivers.

This order marked the beginning of Racal's success, and the company never looked back.

Within two years, Racal moved to a new factory at Bracknell, and by Spring 1961, they had a payroll of 700 and an annual turnover approaching £2 million.

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Under Harrison

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Under Harrison's leadership, Racal underwent significant transformations that would shape the company's future.

Harrison joined the company board in 1958 and helped Racal obtain a Stock Market listing as deputy managing director from 1961.

During his tenure, several major deals were achieved, including the negotiation of a British Army battlefield radio contract that secured the future of Racal.

The merger between Racal and British Communications Corporation bolstered Racal's radio business, while the acquisition of Decca Radar in 1980 gave Racal a competitive edge against rival GEC.

The purchase of the British Rail Telecommunications network formed the basis of Racal Telecom, and the creation and spinning-out of the Vodafone mobile phone network was a significant milestone.

Harrison also stopped a proposed takeover by Williams Holdings by demerging Chubb, demonstrating his strategic thinking and leadership skills.

Here are some key deals achieved under Harrison's leadership:

  • Negotiation of a British Army battlefield radio contract
  • Merging with British Communications Corporation
  • Buying Decca Radar in 1980
  • Purchasing the British Rail Telecommunications network
  • Creating and spinning-out the Vodafone mobile phone network
  • Stopping a proposed takeover by Williams Holdings
  • Investing in National Lottery company Camelot Group
  • Selling Racal Telecom to Global Crossing
  • Selling Racal's remaining defence and industrial electronics divisions to Thomson-CSF of France for £1.3 billion

Under Harrison's leadership, £1,000 invested in Racal in 1961 would have been worth £14.5 million when he retired in 2000.

Products and Services

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Racal Instrumentation was a significant part of the Racal company, consisting of Racal Recorders in Hythe and Southampton, and Racal Instruments in Burnham, near Slough.

Racal acquired Thermionic Products in 1967, creating Racal Thermionics, which was later renamed Racal Recorders in 1978.

Racal Recorders produced a wide range of magnetic tape recorders for multichannel voice recording and instrumentation recording applications.

Decca Radar

Racal bought Decca Radar in 1979, forming Racal-Decca.

Racal-Datacom conducted business in the United States.

Racal-Decca was a significant acquisition, marking a new era for the company.

Racal-Datacom's operations in the US demonstrate the company's global reach and ambitions.

Electronics

Racal Vadic was among the first companies to offer 2400 baud modems in the early 1980s.

The company marketed modems under the name Racal-Vadic, and also used the name Racal-Milgo.

In December 2008, Racal Acoustics Ltd was acquired by Esterline Technologies.

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Instrumentation

Racal Instrumentation was a significant player in the industry, with its roots in Racal Recorders and Racal Instruments.

Credit: youtube.com, Process & Instrumentation - Transducers, Shunts, Regulators, Panel Meters, Gauges and More!

Racal Recorders, located in Hythe and Southampton, produced a wide range of magnetic tape recorders for various applications.

These recorders were designed for multichannel voice recording and instrumentation recording, showcasing the company's expertise in this area.

Racal Instruments, based in Burnham near Slough, was another key component of the Racal Instrumentation brand.

In 1967, Racal acquired Thermionic Products, creating Racal Thermionics, which was later renamed Racal Recorders in 1978.

This acquisition expanded Racal's product offerings and solidified its position in the instrumentation market.

Felicia Koss

Junior Writer

Felicia Koss is a rising star in the world of finance writing, with a keen eye for detail and a knack for breaking down complex topics into accessible, engaging pieces. Her articles have covered a range of topics, from retirement account loans to other financial matters that affect everyday people. With a focus on clarity and concision, Felicia's writing has helped readers make informed decisions about their financial futures.

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