Avco

Avco traces its origins to The Aviation Corporation, a holding company established in the United States on March 2, 1929. It was created during a struggle over the ownership and strategic direction of the CAM-24 airmail operator Embry-Riddle Company. Backed by investors including Fairchild interests, George Hann, Lehman Brothers, and W. A. Harriman, the new company pursued an aggressive consolidation strategy, acquiring stakes in more than 90 aviation-related businesses by the end of its first year. Its early portfolio included airlines, aircraft manufacturers, and other aviation enterprises. The company's airline interests were reorganized in the early 1930s. Universal Air Lines was renamed American Airways, and American later combined with Colonial Air Transport to form American Airlines. New federal rules governing airmail contracts forced the separation of American Airlines from the holding company in 1934. Avco nevertheless remained active in aircraft manufacturing. It acquired the Airplane Development Corporation from the Cord Corporation in 1934, creating the Aviation Manufacturing Corporation, and subsequently developed the Vultee Aircraft business. Consolidated Aircraft was also brought into the group, and in 1943 Consolidated and Vultee were combined into Consolidated-Vultee, commonly known as Convair. Convair remained under Avco's control until its sale to Atlas Corporation in 1947. Avco diversified substantially after the Second World War. In October 1945 it acquired the New Idea Company, a farm-machinery manufacturer founded in the nineteenth century, and also purchased Crosley Corporation. These transactions moved Avco beyond aviation into agricultural equipment, consumer appliances, broadcasting, and other manufacturing activities. The company acquired Bendix Home Appliances in 1951 and combined its appliance activities with Crosley Appliances, although the Bendix business was sold to Philco in 1956. The former Aviation Corporation changed its name to Avco Manufacturing Corporation in 1947 and adopted the shorter Avco Corporation name in 1959. During the 1960s and 1970s, Avco operated as a broad conglomerate. Its portfolio included Carte Blanche charge cards, Embassy Pictures, real-estate development interests, broadcasting stations, appliances, farm machinery, and defense-related manufacturing. Many of these businesses were later divested. Carte Blanche was sold to Citibank in 1978, Embassy Pictures was sold in 1982, and the New Idea farm-machinery line was sold in 1984. Avco's broadcasting assets were also progressively disposed of during the 1970s, while the company relinquished rights associated with the Crosley appliance name. Textron acquired Avco in 1984. Following the transaction, the business was renamed Avco Systems Textron and was subsequently reorganized into Textron defense and systems operations. Textron Systems Corporation was established in 1995 as a broader operating structure that included defense, marine and land systems, and Lycoming-related activities. Avco Financial Services was separated in 1998 through a transaction involving Associates First Capital Corporation; Associates was later acquired by Citigroup in 2000. Avco therefore survives primarily as a historical corporate identity and Textron subsidiary rather than as the independent diversified conglomerate it once was.

The Aviation Corporation was formed on March 2, 1929, as a holding company intended to consolidate aviation businesses and protect the CAM-24 airmail operator Embry-Riddle from a proposed takeover. Its early backers included Fairchild interests, George Hann, Lehman Brothers, and W. A. Harriman. The company rapidly acquired aviation-related firms and held interests in more than 90 businesses by the end of 1929. In January 1930, the company separated its airline interests into Colonial and Universal Air Lines. Universal was later renamed American Airways, and American ultimately merged with Colonial to create American Airlines. Federal changes to airmail-contract rules required the divestiture of American Airlines in 1934. The holding company continued to build an aircraft-manufacturing presence. In the same year it acquired the Airplane Development Corporation from the Cord Corporation and formed the Aviation Manufacturing Corporation. The manufacturing organization later became the Vultee Aircraft Division. Vultee was reorganized as an independent company in 1939, although its relationship with Avco continued. Avco acquired Barkley-Grow Aircraft in 1940 and Consolidated Aircraft Corporation in 1941. In 1943, Consolidated and Vultee were combined to form Consolidated-Vultee, generally known as Convair. Convair was still controlled by Avco when it was sold to the Atlas Corporation in 1947. The sale marked a significant retreat from direct ownership of one of the company's major aircraft-manufacturing operations. Following the end of the Second World War, Avco broadened its industrial base. It acquired the New Idea Company in October 1945, entering farm machinery, and purchased Crosley Corporation in the same period. The corporate name changed to Avco Manufacturing Corporation in 1947 and to Avco Corporation in 1959. The company then expanded into appliances, broadcasting, entertainment, finance, and real-estate development. Its appliance activities included Bendix Home Appliances, acquired in 1951 and combined with Crosley Appliances. Avco sold Bendix Home Appliances to Philco in 1956. Avco's conglomerate strategy continued through the 1960s and 1970s. It acquired Carte Blanche charge cards in 1966, Embassy Pictures in 1967, and interests connected with real-estate developments in Rancho Bernardo and Laguna Niguel. The company also operated broadcasting stations through its Crosley-related activities. These businesses were later unwound: broadcasting stations were divested between 1975 and 1977, Carte Blanche was sold to Citibank in 1978, and Embassy Pictures was sold in 1982 to Norman Lear and Jerry Perenchio. Avco sold the New Idea farm-machinery line in 1984, and the line was subsequently combined with White Farm Equipment under new ownership. Textron acquired Avco in 1984. The acquired business became Avco Systems Textron and then Textron Defense Systems. In 1995, Textron Systems Corporation was created as a broader structure incorporating defense, marine and land systems, and Lycoming-related operations. Avco Financial Services was spun off in 1998 to Associates First Capital Corporation, which was acquired by Citigroup in 2000. The history of Avco is therefore one of repeated portfolio expansion, restructuring, and divestiture: from an aviation holding company, to a large postwar conglomerate, and finally to a corporate identity embedded within Textron's systems and defense businesses.

1. 1998Avco Financial Services is spun off

   Avco Financial Services was separated and transferred to Associates First Capital Corporation.

   Source
2. 1995Textron Systems Corporation is established

   Textron created Textron Systems Corporation to organize defense, marine and land systems, and Lycoming-related activities.

   Source
3. 1984Avco is acquired by Textron

   Textron acquired Avco Corporation. In the same year, Avco sold its New Idea farm-machinery line.

   Source
4. 1978Carte Blanche is sold

   Avco sold the Carte Blanche business to Citibank as part of its portfolio restructuring.

   Source
5. 1967Embassy Pictures is acquired

   Avco broadened its media holdings through the acquisition of Embassy Pictures.

   Source
6. 1966Carte Blanche is acquired

   Avco expanded into financial services by acquiring the Carte Blanche charge-card business.

   Source
7. 1959The Avco Corporation name is adopted

   Avco Manufacturing Corporation changed its name to Avco Corporation.

   Source
8. 1951Bendix Home Appliances is acquired

   Avco purchased Bendix Home Appliances and combined its activities with the company's Crosley appliance operations.

   Source
9. 1947Convair is sold and the company adopts a new name

   Convair was acquired by Atlas Corporation, while The Aviation Corporation changed its name to Avco Manufacturing Corporation.

   Source
10. 1945Avco enters farm machinery and consumer manufacturing

    Avco acquired the New Idea Company and Crosley Corporation, beginning a major postwar diversification beyond aviation.

    Source
11. 1943Consolidated-Vultee is created

    Consolidated Aircraft and Vultee Aircraft were merged into Consolidated-Vultee, commonly known as Convair, while remaining under Avco control.

    Source
12. 1934American Airlines is divested and aircraft manufacturing expands

    New airmail-contract rules led to the divestiture of American Airlines. Avco also acquired the Airplane Development Corporation and formed the Aviation Manufacturing Corporation.

    Source
13. 1930Airline interests are reorganized

    The company's airline holdings were separated into Colonial and Universal Air Lines; Universal was later renamed American Airways.

    Source
14. 1929The Aviation Corporation is formed

    The Aviation Corporation was established on March 2 as a holding company focused initially on consolidating aviation and airmail-related businesses.

    Source

Historically positioned as a diversified American industrial holding company that used aviation as its initial platform and expanded into defense, agricultural machinery, consumer products, financial services, media, and real estate. After its acquisition by Textron, the Avco identity became associated mainly with Textron's defense and systems heritage rather than with an independently marketed consumer portfolio.

• Vultee aircraftAircraft manufacturing1934

  Avco's aircraft-manufacturing history included the Airplane Development Corporation and the subsequent Vultee Aircraft Division. The division represented one of the company's principal prewar and wartime aviation activities and was later reorganized as Vultee Aircraft, Inc.

• Consolidated-Vultee (Convair)Aircraft manufacturing1943

  Consolidated-Vultee was formed in 1943 through the combination of Consolidated Aircraft and Vultee Aircraft. Commonly called Convair, it was a major aircraft business controlled by Avco until its sale to Atlas Corporation in 1947.

• New IdeaFarm machinery1945

  New Idea was a farm-machinery manufacturer acquired by Avco in 1945. It became a central part of Avco's postwar diversification into agricultural equipment before the line was sold in 1984.

• Crosley appliancesHousehold appliances1945

  Avco acquired Crosley Corporation after the Second World War and used the business as a platform for consumer appliances and broadcasting. Appliance activities were later reorganized and the rights to the Crosley appliance name were divested.

• Carte BlancheFinancial services1966

  Carte Blanche was a charge-card business acquired by Avco in 1966. Avco later sold it to Citibank in 1978, ending its direct ownership of the card operation.

• Avco Financial ServicesFinancial services

  Avco Financial Services was the company's financial-services affiliate. It was spun off in 1998 to Associates First Capital Corporation, which was subsequently acquired by Citigroup.

• 1984Textron acquisition of AvcoM&A

  Avco had become a diversified industrial group with businesses spanning aviation, defense, farm machinery, media, finance, and consumer products.

  What changed. Textron acquired Avco Corporation and reorganized the acquired activities under Textron-related systems and defense structures.

  Aftermath. Avco ceased to operate as an independent diversified public-facing conglomerate, while its historical defense and systems activities continued within Textron.

  Source
• 1945Acquisition of New Idea and CrosleyM&A

  After the Second World War, Avco sought to reduce reliance on aviation and build a broader manufacturing portfolio.

  What changed. Avco acquired the New Idea farm-machinery company and Crosley Corporation.

  Aftermath. The acquisitions established Avco's presence in agricultural equipment, appliances, broadcasting, and other consumer-oriented activities.

  Source
• 1943Formation of Consolidated-VulteeM&A

  Avco controlled both Consolidated Aircraft and Vultee Aircraft during wartime aircraft-industry consolidation.

  What changed. The two businesses were combined into Consolidated-Vultee, commonly known as Convair.

  Aftermath. Convair became Avco's principal consolidated aircraft-manufacturing operation until its sale to Atlas Corporation in 1947.

  Source
• 1934Divestiture of American AirlinesStrategy

  Changes to United States airmail-contract rules affected the ownership structure of airline businesses associated with Avco.

  What changed. Avco was required to divest American Airlines, reducing its direct airline holdings while it continued to pursue aircraft manufacturing and other aviation activities.

  Aftermath. The company remained active in aviation through manufacturing subsidiaries and later shifted toward a more diversified industrial portfolio.

  Source

1. Avco