For the exclusive use of P. ISLAS GARCIA 4226 JULY 31, 2010 THOMAS R. PIPER HEIDE ABELLI Monmouth, Inc. Harry Vincent, executive vice president of Monmouth, Inc., was reviewing acquisition candidates for his company’s diversification program. One of the companies, Robertson Tool Company, had been approached by Monmouth three years earlier but had rejected all overtures. Now, however, Robertson was in the middle of a takeover fight that might provide Monmouth with a chance to gain control. Monmouth, Inc. Monmouth was a leading producer of engines and massive compressors used to force natural gas through pipelines and oil out of wells. Management was concerned, however, over its heavy dependence on sales to the oil and …show more content…
Their goal was to build, through acquisition, a hand tool company with a full product line that would use a common sales and distribution system and joint advertising. To do this they needed Monmouth’s financial strength. Dessex provided a solid base to which two other companies were added. In 2000 the Keane Corporation was acquired. The company had been highly profitable but suffered in recent years under the mismanagement of some investor-entrepreneurs. A series of acquisitions of weak companies with poor product lines eroded Keane’s overall profitability. Discouraged, the investors wanted to exit their ownership position, and Monmouth—eager to add Keane’s well-known and high-quality measuring and fastening tools to its line—was interested in the opportunity. It was clear that some of Keane’s lines would have to be dropped and inefficient plants would have to be closed, but the rules, ratchets, and wrenches would play an important part in Monmouth’s product strategy. Monmouth further expanded into hand tools with the acquisition of the Kroll Electric Corporation. Kroll was the world’s leading supplier of soldering tools to the industrial, electronic, and consumer markets. It provided Monmouth with a new, high-quality product line and production capacity in England, Germany, and Mexico. Monmouth was less successful in its approach to a fourth company in the hand tool business—the Robertson Tool
With the purchase of sequel rights, what Arundel is achieving is to have a call option on the revenue that each movie brings. This helps to remove the uncertainty and risks associated with producing a movie, especially with regard to moviegoers’ taste. With the sequel right, Arundel will only exercise this option to produce a sequel if the first movie proved to be popular and the sequel is hence predicted to bring in profits. This provides downside protection, as huge losses (due to high production costs) associated with a failed movie will be avoided.
Carnegie Steel Company which was combined of Homestead Steel Works and a line of lake
like this: Narragansett maintains data on the average annual usage and cost of each item. Based on
On February 10th 1997, Frank Miller assumed the position as the director of data management in Smith’s Information Services department. He was hired to fill a vacancy that was available for more than one year as well as help restructure and reorganize Smith’s Information Services department (Hattersley and Mcjannet, 54). The primary function of the Data Management Group at Smith Financial was to manage the distribution, storage, capture and flow of data throughout the company. Before Miller, this position was left vacant and needed someone to take charge as well as help the company move in a different direction than the current one.
Throughout the century British coal had become increasingly costly and difficult to mine. Nationalization in 1948 had not altered this. Indeed, there was a case for saying that lack of government investment since that date had added to the problem. For some time Britain had been importing coal from abroad. With the exception of few pits producing particular types of coal, British mines by the 1970s were running at loss.
When examining Jeff Hawkins business model during his time as CEO with handspring there was no definitive answer. Hawkins Business model seemed more like a question. “How do you make an exciting product that's pushing the envelope in some ways, but on the other hand is usable and accessible to a very broad populace?”(Barnett, 2000). Hawkins had a business model that relied on strategic partners to perform business tasks such as manufacturing and distribution.
Being the world’s largest paper maker indicates having a larger inventory, more current assets (esp. since it owns timberland and several facilities), and higher cost of goods sold than other paper makers. The inventory for Company J (10.9) is larger than the inventory for Company I (8.8); the current assets for Company J (32.6) are higher than that for Company I (27.2); and the cost of goods sold for Company J (82.9) is higher than that for Company I (75.3). We also expect that, as the world’s largest paper maker, their products will move on the marketplace better than a smaller producer of
The Cartwright Lumber Company had been found in 1994 as a partnership by Mark Cartwright and his brother-in-law Henry Stark. Later in 2001, Mr. Cartwright bought out Stark’s shares and incorporated the business. Now, Mr. Cartwright is a sole owner and president of the company. The business is located in the Pacific Northwest region and does the retail distribution of lumber products in the local area. Plywood, moldings, and sash and door are some of the typical products of the company.
The purpose of this report is to assess the viability of the acquisition of Royal Paper Corporation’s (Royal) Monticello mill and box plants by Atlantic Corporation (Atlantic). This will be conducted through the evaluation and analysis of whether this project is profitable and also if this is a sound strategic move.
While focusing on its premium and super-premium segments, Mondavi plans to introduce new wines within the segment. These wines are expected to compete with the wines from other countries such as France and Italy and are expected to have positive returns.
In 2001, the Tulsa, Oklahoma, Williams Company was in financial distress. The primarily energy-industry company was struggling with a shrinking energy trading market, which was marked by distressed entities such as Enron’s broadband unit and Global Crossing. Williams also suffered internally with a floundering telecommunications division and a plummeting stock price. These issues led credit rating agencies Moody’s and
Candace Kendle, the chairman and CEO of Kendle International Inc and her husband Christopher C. Bergen, the president and CFO privately hold Kendle, a Contract Research Organisation which was incorporated in Cincinnati, Ohio in 1981. The Company provides integrated clinical research and drug developmental services on a contract basis to the pharmaceutical and biopharmaceutical industries. The Company's services comprise Phase II, III and IV of clinical trials. The CRO industry is a full service industry which provides integrated product development services to the pharmaceutical and biotechnology industries. CROs thus derive most of their revenue from the R&D spending of pharmaceutical and biotechnology companies
The vision of Cooper Industries, as stated in the case, was to do an ‘outstanding job at the unglamorous part by making necessary products of exceptional quality.’ The goal was to operate in industries that had become somewhat of a necessity for consumers. Examples of such industries include: power transmission, hand tools, drilling and others. Cooper industries had started in 1833, as an iron foundry, and had existed most of its 150 years as a small sized maker of engines and compressors. However, all this changed in the 1960s, when the management decided to expand the company to lessen its dependence on the capital expenditures of the cyclical natural gas business.
1. Is the acquisition of Royal’s linerboard mill and box plants a sound strategic move? Consider the short- as well as long-term outlook for linerboard prices and the profitability of the linerboard industry. Furthermore, what basis, if any, is there for expecting AtlanticRoyal’s combined linerboard and box mill operations to do better/worse than the industry overall?
There were many reasons why Nicholson was a good acquisition target for Cooper. In accordance with the 3 criteria established in 1966 for Cooper’s all acquisitions, Cooper is already becoming a major factor in the handtool industry when it acquired the Lufkin Rule Company in which more companies were acquired. The Nicholson File Company is an attractive acquisition target as it meets all 3 criteria. The Nicholson did possess 3 important fundamentals not yet translated into earnings. They were the 50% market share leadership in the $50-million market for files and rasps, the third market leadership with a 9% market share in the hand saw and saw blade ($200-million market) and finally the distribution system which provided a market reach of 53,000 retail outlets in the US and Canada