Case Study : The Timken Company Essays

1008 Words Mar 3rd, 2016 null Page
The Timken Company is known as a worldwide producer of bearing and became a leader in the bearing industry for more than 100. During 1922, the company’s stock sold to the public in this year. The company experienced its first loss due the increasing in completion. The company involved in joint investment, acquisitions, and ventures. The company started to secure and restructure its operations into worldwide business units. The Timken was planning to acquire a new company that will make the company to be in a good position. They determined to acquire the Torrington Company from Ingersoll Rand. This idea would give the company an advantage to be a global leader in the bearing industry. By combining the two companies, this would give Timken to acquire and expand more in Europe by 17% in sales. After acquiring a new company, this would make the market share for Timken to be increased and make the company identify itself globall. The Torrington was producing multi products, such as needles, ball bearings, motion control components, assemblies, and cylindrical, while the second company was producing tapered roller products and alloy steel. The combination would benefit the two companies in providing services in the market. The acquisition would be appropriate for both companies.

The combination for both companies would be simple to handle because the both company are in the same field. Timken will have an advantage of economic of scale since they combine the two…

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