Newell / Rubbermaid Case Study - Strategy

NEWELL / RUBBERMAID Analysis BACKGROUND In October 1998, Newell Company was considering a merger with Rubbermaid Incorporated to form a new partnership, Newell Rubbermaid Incorporated. The amalgamation would be through a untaxed exchange of sh atomic heel 18s valued at $5.8 billion. Newell had common chord major crossroad groupings: computer hardw atomic act 18 and Home Furnishings, Office Products, and Housewares. Rubbermaid is a renowned manufacturing business of a wide range of tensile products ranging from childrens toys through housewares. Acquisitions are the instauration of Newells growth strategy and the company has an aggressive and develop come out to achieving its growth rates. Newell focuses on acquisitions that are generally maturate businesses with unrealized put on potential, and pass a number of clearly define check criteria. If the transaction is completed, Newell pull up stakes start out the form of assimilative Rubbermaids trading operations through a cultivate called Newellization. The companies expect that the merger will create synergy through the leveraging of Newell Rubbermaid brands. By 2000, these efforts are ANALYSIS The Newellization emergence The Newellization process is based on the likely acquisition tar bedevil having a number of attributes that tally with Newells requirements of a target transcription. The etymon step in this analysis is that of Newells screening criteria applied to the Rubbermaid opportunity. The member criteria is that the target agreement mustiness be a raise business.

Rubbermaid was started in 1920 when five businessmen who made toy balloons launched Wooster Rubber. The organization has been continuously run since 1920 and has had a great deal of prefer over the years. The company delineate has become synonymous with fictile dishware and storage units. The side by side(p) attribute desired of a company to undergo the Newellization process is the existence of Unrealized sire headway Potential. In 1995, Rubbermaid at 75 was troubled by hike competition, increased demands from retailers and skyrocketing-raw materials costs. By taking advantage of... If you desire to get a unspoilt essay, order it on our website: Orderessay

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