The Timken Company Case
1. How does Torrington fit with the Timken Company? What are the expected synergies?
There are many ways in which Torrington fits with the Timken Company. Firstly, it is apparent that both companies understand the problems of their businesses and industry. This is because they both do business in the automotive and industrial bearings market. This means that the management will not change significantly. Instead, it will get reinforced. The fact that the acquisition will facilitate reconciliation of management styles and also accounting standards means that they fit each other. In fact it can be said that some of the reasons for acquisition include, but are not …show more content…
5. What is the price Ingersoll-Rand is likely to accept? Is Ingersoll-Rand likely to want a cash deal or a stock-for-stock deal?
IR is likely to accept an amount equal or more than $800 million. The case reveals that it is IR desire to allocate capital to higher potential growth and higher return service businesses so as to leverage its cross-selling strategy. The case also indicates that IR could not justify allocating substantial capital resources to maintain a leading competitive position in a consolidating, relatively slow growth-industry. This means that the IR is likely to want stock-for –stock deal.
6. Should Timken go forward with the acquisition at all?
No. Timken should abort the acquisition mission.
7. If Timken decides to go forward with the acquisition, how should they…