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
Premium
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
Premium
| | 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
Premium Discounted cash flow
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
Premium Bearing Ohio
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
Premium Free cash flow Credit rating Cash flow
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
Premium Theory Ohio
... 14 5. Price to accept ...................................................................................... 15 6. Recommendation .................................................................................. 17 Executive Summary: Timken Company requires a report on its consideration to acquire Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth‚ price at which Torrington could be acquired and the acquisition strategies to negotiate its
Premium Discounted cash flow Net present value Cash flow
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
Premium Discounted cash flow Weighted average cost of capital
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
Premium Revenue Automotive industry Cash flow
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
Premium Stock market Stock Investment