Derald Ruttenberg
| Derald H. Ruttenberg | |
|---|---|
Derald H. Ruttenberg in 1999, by Bill Cunningham, The New York Times
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| Born |
17 February 1916 Lafayette, Indiana |
| Died | 19 September 2004 (aged 88) Mount Sinai Medical Center, New York City |
| Nationality | American |
| Occupation | Businessman |
| Known for | Studebaker-Worthington merger |
| Spouse(s) | Janet Ruttenberg |
| Children | John, Eric, Kathy, and Hattie |
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.
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.
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.
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.
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