Mercury Athletic Footwear: Valuing the Opportunity Active Gear‚ Inc. (AGI) is a privately held footwear company and is contemplating the possibility of acquiring Mercury Athletic Footwear. West Coast Fashions Inc.‚ a large designer and marketer of men’s and women’s branded apparel recently announced that it plans to shed its Mercury Athletic Footwear subsidiary. AGI’s head of business development‚ John Liedtke‚ believes acquiring Mercury Athletic Footwear is a good option for the company. Although
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Mercury Athletic Footwear: Valuing the Opportunity Group 1 Bushra Javed Butt M. Sharjeel Shahid Mahnoor Malik Uzair Nasir MBA II – Section A Submitted To: Sir Nawazish Mirza Introduction West Coast Fashions‚ Inc. (WCF)‚ a large designer and marketer of men’s and women’s apparel decided to dispose of one of their divisions; Mercury Athletic. John Liedtke‚ head of the business development for Active Gear‚ Inc. (AGI)‚ saw a possible opportunity for his company in acquiring Mercury. The footwear
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Mercury Athletic Footwear: Valuing the Opportunity Terran Knox Measurements II MBA-634 Northwood University DEVOS Program Dr. Adam Guerrero 4 March‚ 2015 Problem Statement Mercury Athletic is the footwear division of West Coast Fashions (WCF)‚ a designer and marketer of men’s and women’s apparel. Due to unspectacular financial reports‚ the division was going to be sold. John Liedtke‚ the head of business development for Active Gear‚ Inc.‚ (AGI) looked to acquire Mercury from WCF‚ believing
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Mercury Athletic Footwear Case Study John Liedtke head of Active Gear‚ Inc. (AGI) is contemplating whether to invest in Mercury Athletic a subsidiary of West Coast Fashions (WCF). Mercury was purchased by WCF in hopes to increase business revenue however this was not the case. Business did not do as expected‚ WCF was then eager to abandon its apparel. John Liedtke saw this as an opportunity to take over Mercury and as result increase its business revenue. In order to determine whether this is
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There are several reasons why AGI should consider Mercury Athletic as an appropriate target for acquisition. First‚ acquiring Mercury could improve both companies financially. Acquiring Mercury would double AGI’s revenue. Although Mercury’s financial performance has been disappointing‚ they experienced top line growth of 20% in 2006. Unfortunately‚ their profitability has been disappointing due to price concessions to big box retailers and an unsuccessful women’s line. Mercury’s (and ultimately
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Mercury Athletic Footwear Overview Active Gear‚ Inc. is a privately held footwear company with $470.3 million in revenue in 2006‚ making it relatively small compared to big players in the athletic and casual footwear industry. Eyeing an opportunity for growth via a bolt-on acquisition‚ John Liedtke‚ head of business development for the company‚ is looking into acquiring a subdivision of West Cost Fashions‚ Inc.‚ Mercury Athletic. With 2006 revenue of $431.1 million‚ Mercury Athletic represents
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Overview of Active Gear: 1. Active Gear is a relatively small athletic and casual footwear company $470.3 million of revenue and $60.4 million of EBIT compared to typical competitors that sold well over a $1.0 billion annually Company executives felt its small size was becoming more of a disadvantage due to consolidation among Chinese contract manufacturers. Specialty athletic footwear that evolved from high performance to athletic fashion wear with a “classic” appeal. Casual/recreational footwear
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Question1 – What does the Ghana Case reveal about why countries progress? Fail to progress? Ghana was organized as a self –supporting entity funded by local resources and loans. More so than the other British colonial powers‚ The British promoted education and employed skilled indigenous people throughout the civil service. The government took a laissez-faire approach to commerce‚ Was opened the first bank in Ghana(Standard Bank now) Cocoa was introduced by Presbyterian missionaries
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Mercury Athletic Footwear Case Assignment Questions: 1. Is Mercury a good target for AGI? Discuss strategic fit of brands‚ products‚ customers‚ and distribution. Identify specific sources of value. Discuss AGI’s strengths/weaknesses compared with other bidders. I think Mercury is a good target for AGI: The brands--the AGI brands and logos are associated with a lifestyle that was prosperous‚ active and fashion-conscious. The Mercury brands are athletic and casual footwear. The products--AGI focused
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describe its market. Footwear was a mature‚ highly competitive industry marked by low growth‚ but fairly stable margins. However‚ the individual firms could be quite volatile. * Classify the market structure of the industry. The market for athletic and casual shoes remained fragmented‚ despite the presence of a small number of global footwear brands. Since product lifecycles tended to be short‚ active management of inventory and production lead times were critical success factors. Selling through
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