Preview

Cooper Case

Good Essays
Open Document
Open Document
1578 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Cooper Case
COOPER CASE STUDY SUMMARY
Nicholson
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 & Nicholson
Cooper was interested in Nicholson because of its competitive strength in the hand tools industry. Nicholson had a 50% share for files and wraps with a very strong brand name and high quality line. It also had a 9% share of the 200 million handsaws and saw blades market with excellent brand & quality. It had a very effective and large distribution system across US, Canada and overseas. Cooper industries believed that Nicholson can achieve 6% annual sales growth and also bring down the cost of goods sold from 69% to 65% and selling and administrative expenses from 22% to 19%, thereby increasing its profitability. Cooper would be able to use Nicholson’s distribution system to cross sell Cooper’s hand tool lines in the industrial and consumer markets.
Cooper anticipated that the Nicholson acquisition would lessen its earnings volatility and currently Nicholson is in the merger market to fend off the raid by H K Porter Company.
Valuation of Nicholson File (without merger)
Please see Exhibit 1 and Exhibit 3 for details and assumptions
Assuming that Nicholson will continue to have sales growth equal to 2 % with cost of goods sold at 69% of the net sales, its market price will stay in the ($19 to $27 range in 1972) and ($22 to $31 in 1976) because of the operating in-efficiencies and lower profit margins (3% to 4 %) as also the un-certain ownership situation. Its share price is therefore lower then its book-value.
Its EPS will range from $2 to $2.25 over the next five

You May Also Find These Documents Helpful

  • Good Essays

    Following a bench trial, the trial court awarded Melissa Cooper damages on her claims of breach of promise to marry, fraud, and attorney fees. Without having moved for a directed verdict in the trial court, which limits his possible recourse to a new trial, Christopher Ned Kelley raises five enumerations of error, including that a promise to marry is not enforceable when the parties are in a meretricious relationship. We find no error and affirm.…

    • 1980 Words
    • 8 Pages
    Good Essays
  • Good Essays

    Cooper V. Austin

    • 864 Words
    • 4 Pages

    Philip J. Cooper v. Charles Austin 837 S. W. 2d 606 (Tenn. Ct. App. 1992)…

    • 864 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Anheuser-Busch Company acquired Campbell Taggart Incorporated to fulfill their diversification strategy. The merger was accomplished flawlessly, until the SEC informed Anheuser-Busch that they were investigating unusual activity of the Campbell Taggart stocks because they were speculating that Insider Trading have taken place.…

    • 1703 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Edward Colucci Case

    • 1526 Words
    • 7 Pages

    List and briefly describe the alleged victim/s of the abuse, including children’s ages if possible.…

    • 1526 Words
    • 7 Pages
    Good Essays
  • Better Essays

    Sheppard Case

    • 1274 Words
    • 6 Pages

    The petitioner filed for habeas corpus relief in the federal courts. The question was whether Sheppard was deprived of a fair trail and his right to due process according to the Sixth Amendment. Was the petitioner denied a fair trail for the second-degree murder of his wife, of which he was convicted, because of the trail judge’s failure to protect Sheppard sufficiently from the massive, pervasive, and prejudicial publicity that attended his prosecution?…

    • 1274 Words
    • 6 Pages
    Better Essays
  • Good Essays

    Charles Warner Case

    • 817 Words
    • 4 Pages

    December 2nd, 1982 was when the state of Texas took the life of Charles Brooks, Jr. Texas was the first state of the United States to use lethal injection to carry out the death penalty, the amount of executions in the United States has held since 1976 is over 1,429. Since 1976, we’ve dwindled on our Eighth Amendment of the United States Constitution, which prohibits the federal government from imposing excessive bail, excessive fines, or cruel and unusual punishment.…

    • 817 Words
    • 4 Pages
    Good Essays
  • Good Essays

    David Fletcher Case

    • 900 Words
    • 4 Pages

    This case explores the problems managers face when assembling a team. David Fletcher, is an overworked portfolio manager of the Emerging Growth Fund at Jenkins, Fletcher Partners (JFP), an investment management firm in New York. As an individual, his superior performance throughout his career has earned him an outstanding reputation. Starting out as a clerk, he rose through the ranks of Wall Street to eventually manage the two most aggressive mutual funds at a major investment firm. Success at this firm only added to his reputation and lead to his current role at JFP, a smaller firm with an informal culture. At JFP, Fletcher is challenged with the new responsibility of managing a team, in addition to managing his portfolio.…

    • 900 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Because Cooper was a huge success in its acquisitions I would suggest that the company acquire Champion. As stated in the case “ the product lines would complement Coopers compression and drilling segment”. Cooper was able to manage all the companies it acquired and that helped the business grow into a success. It will be able to transform both management and capital outlays.…

    • 272 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Newell Case

    • 556 Words
    • 3 Pages

    Yes, good handle on cost structure – how to make high volume low-cost products and relate to volume sellers; operational efficiency and profitability – Newellization, solve fundamentals of cost structures to bring operating margins to 15%…

    • 556 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Black & Decker 2008

    • 873 Words
    • 4 Pages

    Duncan Black and Alonzo Decker, SR., in 1910, started a machine shop business and in 1917 receiving the world’s first patent for a power drill. The company was later named Black & Decker, (B&D) and over the next 73 years they became one of the most well known brands and market leaders of power tools, accessories, lawn, garden supplies and residential security hardware worldwide. In 1990 B&D grew to a record $4.8 billion dollars in sales with 50% of their business coming from outside the United States. “The B&D name enjoyed substantial equity in both the United States and Europe. An independent survey of 6,000 brands showed (B&D) brand-strength ranking to be #7 in the United States and #19 in Europe” (Dolan 1995). B&D was focused on three very different market segments in the industry; Professional-Industrial Tools, Professional-Tradesman Tools and Consumer Products. The focus of this report will be on the Professional-Tradesmen market segment under the Power Tools Division. “Tradesmen” segment are electricians, plumbers, carpenters, framers, roofers and general remodelers working in residential construction. We will first determine the cause of B&D 9% share vs. Makita’s 50% share. Second, we will describe the buying behavior of the tradesman and their impact on the situation. Next, we will look at Makita’s and Milwaukee’s competitive strategies. Finally, we will discuss the action alternative that B&D should pursue.…

    • 873 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Cooper Industries Case Study

    • 4208 Words
    • 17 Pages

    In May 1972 Robert Cizik, executive vice president of Cooper Industries, Inc., was reviewing acquisition candidates for his company’s diversification program. One of the companies, Nicholson File Company, had been approached by Cooper Industries three years earlier but had rejected all overtures. Now, however, Nicholson was in the middle of a takeover fight that might provide Cooper with a chance to gain control.…

    • 4208 Words
    • 17 Pages
    Good Essays
  • Good Essays

    Case 3 Bob Knowlton

    • 490 Words
    • 2 Pages

    This case is about a work team that worked together effectively, bonded well and felt comfortable around each other. All until another person (Fester) came into the company who had more knowledge that the leader of the group (Knowlton), causing a form of intimidation causing Knowlton to resign, and the group to be without a leader.…

    • 490 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    The five forces that that are important for an industry and companies involved are a) Competition b) Buyers c) Substitutes d) Suppliers and e) Compliments. The Chainsaw industry is segmented by customer bases namely professionals, farmer and casual users. These customer segments are differentiated by the cubic-inch displacements. Pro users require 4.5 or greater, farmers require 2.7 – 4.5 inches and casual users require about 2.7 inches. The industry is also segment by the distribution channels that each company uses in this case servicing dealers, home centers, department stores, hardware stores and catalog sales. Servicing dealers carry a broad line of chainsaws and also offer servicing and repairs for their products. These complements to the chainsaw increase the value of the product to the customers they serve. These servicing dealers also align themselves with 1 or 2 manufacturers which gives them a higher buying power therefore increasing the value required to compete. Also cooperative advertising by the dealers and manufacturers offers a relational capability by the sharing of resources. In contrast retail channels like home centers do not offer servicing and also offered limited accessories and department stores didn’t carry high quality chainsaws because of the difficulty in selling them. Hardware stores use strategic buying groups to purchase from various manufacturers this strategy gives them a higher buyer power and the ability to dictate market prices. Catalog sales provide to the mass casual market and therefore they carry very limited lines of low priced chainsaws, they don’t provide any servicing and have limited accessories.…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Kate Cooper Case

    • 1469 Words
    • 6 Pages

    Green Meadows Hospital is newly constructed community hospital owned by Southern Hospitals Corporation. Kate Cooper was very excited when she got a new position at Green Meadows as a Manager of Adult Services. They started hiring people and were getting ready to open the hospital. However, things did not go well as they planned and wanted to. Therefore, Kate had to resign. The biggest problem that I see in this was their unorganized management skills and communications skills. They should have more prepared since they were new hospital and related to people’s lives but from the beginning, it seemed like they did not think that it was a big of deal and just went it the flow.…

    • 1469 Words
    • 6 Pages
    Good Essays
  • Satisfactory Essays

    Higgins case

    • 1532 Words
    • 5 Pages

    2) Prescott should relocate Higgins. This is rejected because that would result in more problems occurring. Higgins knows that there is issues going on and for him…

    • 1532 Words
    • 5 Pages
    Satisfactory Essays

Related Topics