Executive Summary Diageo‚ which is a London based company‚ has the production and distribution of Spirits and Wine‚ with highly recognized brands all around the world such as Johnny Walker and J&B‚ as its main business activity. Furthermore‚ the firm is engaged in the package food and fast food industry with Pillsbury and Burger King respectively. The corporation was formed in 1997 through the merger of Guinness Plc. and Grand Metropolitan. Diageo follows the norm of British Corporations
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General Mills’ Acquisition of Pillsbury from Diageo PLC Lauren Sherlock Jason Park JP Zendman 12/9/2009  General Mills’ Acquisition of Pillsbury from Diageo PLC Situation Analysis: In December 2000‚ management at General Mills (GM) proposed a plan to acquire Pillsbury‚ a baked- goods producer‚ in a stock-for-stock exchange. Pillsbury is currently controlled by Diageo PLC‚ one of the world’s leading consumer–goods companies. The deal specifies that General Mills is to create
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Diageo comes from the Latin for day (Dia) and the Greek for world (Geo) Diageo is a global alcoholic beverage company headquartered in London‚ United Kingdom. It is the world ’s largest producer of spirits and a major producer of beer and wine. Their mission statement is “Our strategy is to drive organic growth in premium drinks. We will invest to take leadership positions in every category‚ market and consumer occasion in which we choose to compete” (Diageo‚ 2011). Diageo ’s brands include Smirnoff (the
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Case 1 General Mills’ Acquisition of Pillsbury from Diageo PLC 1. What are General Mills’ motives for this deal? Estimate the present value of the expected cost savings (synergies). In the spring of 1998 General Mills began studying areas where they could add to the company and advanced a strategy of acquisition-driven growth. General Mills has several motives for pursuing a deal to acquire Pillsbury. Pillsbury was identified as an ideal target due to its ability to complement General Mills’
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Introduction Diageo was created when Grand Metropolitan‚ plc and Guiness‚ plc merged in 1997. While the Diageo name is not well known to consumers‚ its brands are among the most famous including Guinness‚ Smirnoff‚ Johnnie Walker and Cuervo. The company recently decided to focus on a strategy to grow through its spirits‚ wine and beer businesses and divest of its Pillsbury and Burger King subsidiaries. This case study will focus on the proposed capital structure decisions of Diageo. 2) Is Diageo’s
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Diageo PLC Terms of reference: The main purpose of this report is to highlight the main problems which Diageo PLC is facing by using SWOT analysis which analyses strengths‚ weaknesses‚ opportunities and threats of the business. Introduction: Diageo PLC is the leader of an alcoholic drinks in the world operating in 180 countries providing customers with wide range of premium drinks such as vodka‚ whisky‚ wine and beer. Furthermore the main problem that the company is facing is that they have
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2.3 Increased valuation of Diageo 3 2.3.1 Comparables 3 2.3.2 Cash flow 4 2.3.3 Increased leverage 4 2.3.4 Acquisitions 4 3. Implicit assumptions of the Monte Carlo simulation 4 3.1 Capital expenditure 5 3.2 Investment in intangibles 5 3.3. Working Capital 5 3.4 Consistency between implicit and explicit assumptions 5 4. Description of the working of the simulation 6 5. The results of the simulation in comparison with Diageo ’s stated capital structure policy 6 5.1 Diageo ’s stated capital structure
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Executive Summary 1.1 Introduction to the Firm ‘Diageo is the world’s leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits‚ wine and beer categories. These brands include: Smirnoff‚ Johnnie Walker‚ Captain Morgan‚ Baileys and José Cuervo.’[1] Here at Diageo we hold an enviable position of market leader for a variety of spirits and ready-to-drink (RTD) beverages. This market
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Introduction and Background Diageo was formed in 1997 through the merger of two consumer product companies Grand Metropolitan plc and Guinness plc under the strategy of reducing costs through marketing synergies‚ cutting overhead expenses and increasing production and purchasing efficiencies. The new merger wanted to concentrate solely on the beverage alcohol business‚ so it sold its packaged foods (Pillsbury) and fast food (Burger King) businesses. While the mandate for Managing for Value came
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2006 Introduction "Diageo PLC is a British multinational alcohol company‚ selling alcohol in 180 countries‚ with a substantial presence in 30 countries. The company was created in 1997 by the merger of Guinness PLC with Grand Metropolitan PLC (GrandMet)" (diageo. com). At that stage‚ it was a large multinational with interests in food as well as drink. Today‚ the company has shed most of its food interests to concentrate on alcohol‚ acquiring new spirit brands. Diageo engages in the manufacture
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