Cooper Industry, H.K. Porter Company And Vln Corporation

2433 words - 10 pages

IntroductionCooper industry, H.K. Porter Company and VLN Corporation are entangled in a battle over the takeover of Nicholson File Company.Both H.K. Porter Company and VLN Corporation have already made their offers to the Nicholson File Company shareholders and now the management of Cooper Industry have to decide whether to jump into the foray for the control of Nicholson File Company or not.The major issues faced by the management of Cooper Industry are as following:1. Is Nicholson File Company an attractive acquisition target for Cooper Industries? Specifically, what synergies can be created by merging these firms, and in what other aspects is Nicholson an attractive target? In what respect, if any, is Nicholson not an attractive target? Overall, is there sufficient strategic fit to justify pursuing this acquisition?2. What sort of integration issues is Cooper Industry likely to face if it is successful in acquiring Nicholson? What should Cooper's management do to facilitate successful integration?3. What should be the range of prices Cooper Industries should be willing to pay for each share of Nicholson's stock, in case it wants to acquire the firm?Strategic Analysis - how does Nicholson fit into Cooper's acquisition strategyCooper could become a major factor in the hand tools business given its expertise in manufacture of machine tools. Moreover, one of the main problems that Cooper faces currently is a large cyclicality in its business, characteristic of the heavy machine tool industry, but more pronounced because of its dependence on Oil and Gas industries. These industries are heavily correlated with the state of the economy. So when there is a slowdown, Cooper would be one of the first companies to go down - something that they would want to avoid through diversification by way of acquisitions. The hand tools business is a lot less cyclical and cash flows are likely to be less lumpy. This fits in with Cooper's requirement of smoothing its income flows.The hand tools industry has a broad focus ranging from files to saws and hammers - mostly small ticket items. This ensures that Nicholson does not depend on any particular customer/industry for its revenues, as is the case with Cooper.Nicholson is the market leader in files and rasps and ranks 4th in handsaws and saw blades. Thus it very much fits into Cooper's strategy of acquiring only leading companies.The Nicholson acquisition would come on the heels of 3 previous acquisitions, all in the hand tools business, showing definite intent on the part of Cooper to move into this line. Nicholson would provide a wider range to Cooper's current hand tools portfolio. The idea was to build a comprehensive hand tools company that could share the common distribution channels as the parent company, thus improving returns.As per its outlined strategic policy Cooper should look at Nicholson as a favorable acquisition target.Improvements in Nicholson's operations as a result of the acquisitionCooper...

Find Another Essay On Cooper industry, H.K. Porter Company and VLN Corporation

The water company and how the framework provided by UK water industry affects it

861 words - 3 pages Countryside Council for Wales, on environmental issues.We do this by:- setting limits on what companies can charge you;- ensuring companies are able to carry out their responsibilities under the Water Industry Act 1991 as updated by section 39 of the Water Act 2003;- protecting the standard of service you receive;- encouraging companies to be more efficient;- meeting the principles of sustainable development; and- helping to encourage competition where

Use the Marketing Techniques and develop a company dealing with the childcare industry in Malaysia

3366 words - 13 pages IntroductionChildcare Industry is a type of services sector and it is one of the most promising service sectors because it is one of the fast developing sector in Malaysia. Since 1970s, the Malaysian Government emphasized the importance of education and childcare and this create more golden opportunity for marketer to choose childcare service as their target market. The childcare service has its own target market consisting of all actual and

Dilemma in the Workplace - The Enron Corporation. Includes background on the company, key problems and issues, who was affected, and evaluations and solutions. 3,010 words. Greatly detailed.

2933 words - 12 pages a lot more favorable than the class action suit. (Enron, 2002)Many customers worldwide are affected by the fall of Enron. The controls of many entities of Enron are being sold to various subsidiaries of Enron. For example, Enron reached an agreement to sell the wind turbine manufacturing assets of Enron Wind Corporation, its wind power subsidiary, to the Power Systems business of General Electric Company. (Enron, 2002)Evaluation and

Write a business report on the 'Kentucky Fried Chicken Corporation (KFC)', one of the world's largest chicken restaurant chain. Include SWOT analysis and Industry & Competition analysis.

3749 words - 15 pages weaknesses so as to hold a lead position in Latin America by operating several company-owned restaurants in the targeted countries.RecommendationsKentucky Fried Chicken Corporation, the world's largest chicken restaurant chain and the third largest fast-food chain, has several internal weaknesses and resource deficiencies which needs to be identified and improve to gain a competitive advantage over its rivals. Moreover, today's fast-food industry offers

Analise E.on UK, through studying industry dynamics and Porter's 5 Forces. Identify competitiveness of the key marketing features in the company, through studying product life cycle and innovation.

2297 words - 9 pages strengthen its weaknesses and benefit from the opportunities that may open up. To analyze and discuss the strategic issues, using industry dynamics and Porter’s five forces, and then using Product Life Cycle and Innovation to identify the key marketing features and reflect on them in relationship to a company, consider one of UK’s leading energy companies, E.ON UK.‘Porter argues that the nature and degree of competition in an

Cooper Industries

2691 words - 11 pages described failed and accepted acquisition offer in the case study of Cooper (see Chart #1 below).The acquisition offers by both H.K. Porter, $42 per share in cash and VLN Corporation, $53.10 in convertible stock, help provide at least a range within which Cooper may tailor its offer.Based on these two offers, it appears that the appropriate form of payment should be Cooper cumulative convertible stock. The primary basis for this recommendation is that

Case Study -Cooper Industries

2691 words - 11 pages described failed and accepted acquisition offer in the case study of Cooper (see Chart #1 below).The acquisition offers by both H.K. Porter, $42 per share in cash and VLN Corporation, $53.10 in convertible stock, help provide at least a range within which Cooper may tailor its offer.Based on these two offers, it appears that the appropriate form of payment should be Cooper cumulative convertible stock. The primary basis for this recommendation is that

Cooper Case

1518 words - 6 pages Early in 1972 Nicholson dad to fend off a take over attempt by H.K. Porter Company Inc., which controlled 30.5% of the company's stock. Porter made a cash tender offer to stockholders. However, Porter did not get enough stock to take over Nicholson. In trying to fight the takeover Nicholson made several merger overtures to other companies like VLN Corp. A few years back, it had rejected an offer from Cooper Industries. Cooper Industries

The primary internal and external influence on the General Motors Corporation

3834 words - 15 pages they belong to different Country Alliances and Economic Blocs. The Chinese government forbids the wholly foreign owned subsidiary in the automobile industry. The China customs also charge tariff on the automobiles. In order to enter the market of other Country Alliances and Economic Blocs, the General Motors Corporation establishes joint venture with Chinese company. The Shanghai GM joint venture is created by the General Motors Corporation and a

Cooper Industries Cooper Industries was formed during the early 1920s

566 words - 2 pages Cooper IndustriesCooper Industries was formed during the early 1920s and they are manufacturers of heavy machinery and equipment. The company also became principal producer of engines and massive compressors. Unfortunately, the issue of concern during that time was the company?s heavy release on sales to the oil etc and the fluctuation of earnings Cooper Acquisition strategy had to include the following: 1. The industry had to be one where by

Lowes’ Porter's Five Forces Competitive Analysis

1272 words - 5 pages through as: Home Depot, Lowes, Wolseley plc, CCA Global Partners, Inc., Menard, Inc., The Sherwin-Williams Company, Stock Building Supply Holdings, Inc., 84 Lumber Company, Ace Hardware Corporation and Do it Best Corp. (Yahoo Finance, 2014). These companies have the biggest share of housing improvement supplies. The threat of new entrants is very low in the industry since the companies are holding advantage of economies of scale with an extensive

Similar Essays

Case Study Cooper Tire And Rubber Company

2334 words - 9 pages Introduction"Cooper Tire & Rubber Company, founded in 1914, specializes in the manufacturing and marketing of rubber products for consumers. Products include automobile, truck and motorcycle tires, inner tubes, NVH control systems, automotive sealing, and fluid delivery systems." ( case study on Cooper mainly concentrates on the tire industry, andTherefore the following analysis will be based on

Stryker Corporation And Medical Industry Trend 2004 Medical Equipemnt Industry

1038 words - 4 pages Industry Analysis & Future OutlookIndustryThe U.S. market for medical devices exceeds $55 billion and continues to grow, thanks to an aging population and technological advances that help improve health and lengthen lifespans. The Medical Equipment Industry (to which Stryker Corporation belongs) has an estimated market capitalization (number of shares outstanding multiplied by the stock price) of 129.70 billion. Although there are medical

Industry And Company Analysis Of Harley Davidson Inc.

2044 words - 8 pages Industry and Company Analysis of Harley Davidson Inc William Harley and Arthur Davidson started Harley Davidson Inc. in 1903 when they were intrigued by the newly invented concept of motorcycles. The pair was so moved by the concept they decided to begin manufacturing their own motorcycle which will would be unique by many measures (Oosterwal, 2010). Since the company’s onset; innovativeness has been at core of the firm’s business

Computing Technology Industry Association A Report About The Company And The Industry

1213 words - 5 pages Computing Technology Industry Association, more commonly known as CompTIA, is known as a leader of the information technology (IT) industry. CompTIA was started in 1982 by a company called Association of Better Computer Dealers Inc. which is a group of many different Information Technology companies. CompTIA offers certification exams and jobs in the IT industry such as the A Plus certification, Network Plus exam, Server Plus, Linux Plus, and