The Timken Company Top management of Timken hires you as consultants to perform an independent analysis and recommend the best‚ in your opinion‚ course of action in the proposed acquisition of the Torrington Company. Your task is to write a report that will address their questions and concerns‚ in particular: 1. 2. 3. 4. How does Torrington fit with the Timken Company? What are the expected synergies? What is your stand alone valuation of Torrington? What is your with-synergies valuation of Torrington
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grade” debt rating. The combined entities‚ Torrington-Timken‚ would produce an interest coverage ratio of 3.2‚ and a debt ratio of 45%‚ again within the range for a BBB “debt rating. The purchase would likely be a cash transaction. History Founded by carriage-maker Henry Timken in 1899 in St. Louis‚ Missouri‚ the Timken Company was originally incorporated as The Timken Roller Bearing Axle Company. In the previous year‚ Timken had received a patent for a tapered roller bearing‚ this
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NYSE: TKR THE TIMKEN COMPANY Investment Thesis The Timken Company is the largest tapered roller bearings manufacturer in the world and one of the largest manufacturers of alloy and specialized steel in the world. The company reports revenues in three business segments: Steel (31% of 2005 revenue)‚ Automotive (32%)‚ and Industrial (37%). I feel that Timken is capable of delivering solid EPS and top-line revenue growth over the next two years‚ driven largely by demand for industrial bearings and
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| | ECONM2021Cases in Financial Management | THE TIMKEN COMPANY | (Word Count: 4000) | Candidate Nos.380843767942568 | | Executive Summary The Timken Company – a leader in the bearing industry‚ is considering acquiring the Torrington Company from Ingersoll-Rand. Torrington – an engineering solutions segment of the Ingersoll-Rand. The main motive of acquisition is to enhance Timken’s market share and product base. Operating synergies are highly expected from this merger with 80 million
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CASE 46 THE TIMKEN COMPANY Teaching Note Synopsis and Objectives The acquisition of Torrington from Ingersoll-Rand (IR) required a strategy that would meet both the investment and the financing objectives of the Timken Company. In that regard‚ the case provides an excellent example of the principle that investment and financing decisions can be considered independently. In effect‚ Timken captured the positive NPV of Torrington even though Timken was required to increase its leverage beyond
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MASSON FINC 624 BUSINESS VALUATION SUMMER II – 2015 Timken Co. Case Writeup Fatmah Alyami Wenting Yu Meshal Alyami Shengxu Li Tongkai Zhang Yuqing Zhang Timken Case WriteUp ● How does Torrington fit with The Timken Company? o What are the expected synergies? We believe that Torrington fits in with Timken Co. and this acquisition will generate positive operating synergies for Timken Co. The reason being is that they both operate in the same i
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Introduction Timken Company was the leader in Bearings Industry‚ however lately the revenues had been declining owing to its cyclical nature and decreased demand for bearings. Timken was facing increased competition from Europe and Japan who were the leading manufacturers of ball bearings. To fight these imports Timken decided to pursue the strategy of bundling where in it could add additional products and services to its products and provide more value to its customers. Timken then started a companywide
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Torrington fit with The Timken Company? What are the expected synergies? Timken‚ is the inventor of the tapered roller bearing‚ and Torrington‚ the pioneer and leading global producer of needle roller bearings‚ have only a 5% overlap in their product offerings; together would make Timken a formidable company. The acquisition of Torrington will substantially broaden Timken’s product portfolio and enable deeper penetration of the global market. After the acquisition Timken will be listed in the list
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Individual Case Brief-The Timken Company Main Issue The Timken Company was intended to acquire the Torrington Company from Intersoll-Rand (IR). If the acquisition succeeded‚ Timken would get synergies such as boosting world market share and cutting costs substantially. However‚ considering the large size of this acquisition‚ Timken would face the stress of below-investment-grade rating and series of future financing problems if IR required a cash deal. A feasible financing structure must be considered
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The Timken Company Due Date: Tuesday‚ Sept 17th‚ 2013‚ 5pm. Presentation Date: Sept 18th‚ in class. Please e-mail me an electronic copy of the report before the deadline. At the beginning of the class on Wed.‚ please also submit a printed copy. The names of all group members should be specified at the top of the report. For Lead Group: case report should be no longer than six pages of text (double space‚ Font 11‚ 1 inch margin on all sides). You should also include any additional financial
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