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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TIMKEN CASE STUDY1Doan Thi Thu Ha Timken was known as a leading manufacturer of highly engineered bearings and alloy steels and famous for its tapered roller bearings with over 200 types in more than 30‚000 sizes. It was also the market leader in mechanical seamless steel tubing and shipped more than one million tons of premium alloy steels annually. Timken was located in Canton‚ Ohio. However‚ its operation was not limited in Ohio but in twenty-five countries and employed over 20‚000 people
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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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whether Timken should acquire Torrington company from Ingersoll-Rand by cash‚ issuing share to public or issuing share directly to IR. IR wanted to divest Torrington and Timken aim to acquire it. After merging with Torrington Timken will be world third largest company in bearing industry and Timken would gain more sales as Timken and Torrington has about 80% of overlapped customer. Moreover after the synergy they can reduces cost‚ increase market shares and have more production lines. As Timken leverage
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Introduction Romania is an important wine producing European country‚ which has a long history with many cultural traditions – many of which are related to wine. Wine is considered to be the divine drink‚ in Romania. The beginning of viticulture in Romania dates back at least 400 years ago. The legend has it that Dionysos‚ the god of wine‚ was born in Thracia‚ in the region of modern day Romania. Dacia had a wide knowledge of wine. The abundance of grapes and the renowned wine produced
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The Timken Company to Acquire Torrington This memo will examine Timken Company’s decision to acquire Torrington by examining the stand-alone value of Torrington‚ the synergies of this acquisition and the effect on Timken’s investment grading. Acquiring Torrington seems to fit well with Timken’s long term growing strategy. Torrington and Timken share 80% of their customers but only overlap 5% in their product offerings. Not only would this allow customers to make Timken a one stop shop for
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THE TIMKEN COMPANY In 2002‚ The Timken Company was considering acquiring The Torrington Company from Ingersoll-Rand. The acquisition would make a clear statement to the market about Timken’s commitment to remain a worldwide leader in the bearing industry as it would result in the combination of more than 100 years of bearing manufacturing and development experience. Because the two companies shared many of the same customers but had few products in common‚ customers would surely appreciate the
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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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project.” Gordon East‚ IT Manager‚ Timken Business Needs Timken‚ a 109-year-old company‚ is a longtime leader in the production of antifriction bearings and specialty steel. The company began as a carriage maker before the advent of the mass production of automobiles and now has offices in 27 countries and 25‚000 employees. Timken competes in a global marketplace that requires companies to adapt to ever-changing financial conditions. Executives at Timken were anxious to rebuild the company’s
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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 propelled the company to national success
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