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. The acquisition of torrington, inc, ingersoll-rand, inc, requires a strategy that meets both the investing and financing activities objectives of the timken company the case provides an excellent example of the principle that investment and financing decisions can be considered independently. Alternative 2: acquisition of torrington company from ingersoll-rand by stock offering to ingersollrand: timken could acquire torrington by offering its stocks to ingersoll45263 equity value per share 6749 equity value of the firm 5668094 less: debt 1031966 add: cash 128premium paid net acquisition value for the combined firm for this.
The timken company case study acquiring torrington executive summary from our dcf calculations, the value of torrington as a stand-alone entity is $1181 billion however, the maximum purchase price for torrington should only be $641 million the optimum debt amount for this transaction would be $301 million. The us based company the timken company (timken) notified its intention to acquire within the meaning of art 3(1)b of the merger regulation the worldwide torrington engineered solutions business (ﬁtorringtonﬂ) from the ingersoll-rand. A case study about the climax deal has been posted here at , and has been added the purchaser was the timken companies, a global manufacturer of fracture mechanics and modeling of contact fatigue - eolss.
With this acquisition, timken continues its strategy to diversify its portfolio with products and services that also include bearings, gear drives, chain, belts, couplings, automated lubrication systems, industrial clutches and brakes, and a variety of related industrial services. Is ingersoll-rand likely to want a cash deal or a stock-for-stock dealshould timken go forward with the acquisition at allif timken decides to go forward with the acquisition, how should they structure the deal in terms of the price offered and the method of payment timken company case (solved) how does torrington fit with the timken. Case study the timken company uploaded by how does torrington fit with the timken company what are the expected synergies with-synergies valuation cost savings 80 80 80 80 80 acquisition price 800 integration costs 26 26 26 26 26 50 tax payment 3416 4368 fcff 9000 depreciation expense 801 1 what is your with-synergies valuation. Timken the acquisition of the torrington company represents a powerful move by a strong company it builds on our proud heritage and bodes well for a promising future.
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 by combining more than 100 years of bearing manufacturing and development experience. 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. How would those ratios change if timken borrowed 0 million, for example, to buy torrington if timken decides to go forward with the acquisition, how should timken offer to structure the deal is ingersoll-rand likely to want a cash deal or a stock-for-stock deal. On february 18, 2003, timken completed the acquisition of the torrington company (torrington), a manufacturer of needle bearings used in transmission and wheel applications timken case study timken case the timken company – a leader in the bearing industry, is considering acquiring the torrington company torrington company, a. Answer to the timken company case questions 1 how does torrington fit with the timken company what are the expected synergies 2 what is your stand-alone find study resources if timken decides to go forward with the acquisition, how should timken offer to structure the deal is ingersoll-rand likely to want a cash deal or a stock-for.
In 2002, timken company was considering acquiring torrington company from ingersoll-rand - load-carrying components: safely carries the weight of the railcar and its cargo - nonload-carrying components: provides the force necessary to achieve clamp application under extreme speed and temperature. The acquisition of torrington, inc, from ingersoll-rand, inc, required a strategy that met both the investment and financing objectives of the timken company the case provides an excellent example of the principle that investment and financing decisions can be considered independently. Please view attached file and provide the correct answers to the following questions how does torrington fit with the timken company what are the expected synergieswhat is your stand alone valuation of torringtonwhat is your with-synergies valuation of torringtonshould timken be concerned about losing its investment-grade rating.
Timken continues to be successful because of the cumulative contributions made by our many employees, both current and past as we build upon those accomplishments, we remain thankful of our associates’ years of service to the company and their on-going support. The timken company essay sample in this case we analyst whether timken should acquire torrington company from ingersoll-rand by cash, issuing share to public or issuing share directly to ir. Case 47 the timken company 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. The timken company, canton, oh, a worldwide manufacturer of bearings and alloy steel, has reached an agreement with ingersoll-rand company limited to acquire its torrington subsidiary, a leading worldwide producer of needle roller, heavy-duty roller and ball bearings and motion control components and assemblies, for cash and stock valued at approximately $840 million.