Page 46: of Marine Technology Magazine (April 2006)

46 MTR April 2006

MTR: What was is it about RD Instruments that caught your interest?

Kikendall: Well, Teledyne is a multi billion dollar com- pany. We are deeply seeded in technology for a wide array of applications. Teledyne has a successful business unit in geophysical measurement devices. We have been seeking ways to expand into the marine and offshore industry, and

RDI and Benthos fit the bill.

MTR: Can you be a little more specific about why RDI rose to the top?

Kikendall: We were interested in RDI's coverage in the offshore oil and gas; and research markets, and we knew they had a strong reputation within the industry. As a technology company, we were also very attracted to the versatility of their core acoustic Doppler technology, which can be applied to a wide array of applications. We also felt that they had a good group of employees; and now that I'm onboard, I'm especially impressed with their team. This is really a great group of dedicated profession- als.

MTR: Harry, you have been with RDI for over 6 years as VP of Sales and Marketing. At what point did it become evident that RDI was becoming attractive to suitors?

Maxfield: RDI has grown very fast over the past five years.

To be specific, we have gone from $15 million to $38 mil- lion in annual sales in just five years. That growth was partly due to our reorganization of the RDI team into sep- arate product lines and business units focused around spe- cific markets. We were able to grow the business, inspire the sales and service team, and have fun all the while. The result was a focused sales and support staff who created the best branding of ADCPs on the market.

Because of this growth, a little over a year ago, a different organization expressed interest in purchasing RDI. At that time we went through all of the due diligence, but after an extended negotiation period the deal failed to transpire.

During that one-year process, Teledyne expressed interest and jumped at the chance to "look" at us once the other negotiation had terminated. It did not take Teledyne long to determine that RDI was exactly what they were look- ing for and the deal was completed very quickly, smooth- ly, and with as little disruption as possible.

MTR: Now that you have been on board with RDI for this past year, what is it about the place you like the best?

Maxfield: I'm really struck by the people and technology, as well as the opportunities that lie ahead. I also really like what they're doing with utilizing the web to communicate with their staff and customers. Through the use of

WebEx, an online conference service, we are able to effi- ciently address issues, opportunities, and training. How

Teledyne RDI approaches customer communications is excellent. For instance, this week we held a defense relat- ed training workshop here in London along side this show where we invited key MOD and other approved military personnel to come learn about how our products can make their jobs easier. It's this careful targeting of specific customers groups and the building of relationships that sets RDI apart.

MTR: What are your hopes for the Teledyne, RDI,

Benthos Oceans group?

Kikendall: The nice thing about how Teledyne grows is that it looks for small, well-run companies with great rep- utations and then we let them do what they do best. We try very hard not to upset a good thing. As we build this new marine group, we also strive for these organizations to work together, and draw upon their collective talents and technologies to create new markets and opportunities.

We see a lot of synergy here, and we're tapping into that.

We're already hard at work combining Teledyne RDI's

ADCPs with Teledyne Benthos' Acoustic Modems.

MTR: Bill, would you mind telling me what you are looking for in a company? company?

Kikendall: We are interested in premium companies that are well run, with an excellent work force who are recog- nized leaders in the ocean technology field. Both RDI and now Benthos fit that bill completely.

MTR: Are you looking to acquire other companies?

Kikendall: You bet we are. We welcome proposals from other companies such as RDI and Benthos in this indus- try. Feel free to contact our mergers and acquisitions guru,

Walt Rivera. q&a

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