Cooper Industry, H.K. Porter Company and Vln Corporation Essay Example

saws, and hammers, mostly consisting of smaller purchases. This diversification ensures that Nicholson, the acquired company, does not rely on a particular customer or industry for its revenues, unlike Cooper.

Nicholson, the market leader in files and rasps, ranks 4th in handsaws and saw blades, making it an ideal fit for Cooper's acquisition strategy of leading companies. This acquisition would follow three previous acquisitions, all in the hand tools business. Cooper's clear intention to expand into this line is reflected in these acquisitions. Adding Nicholson to Cooper's hand tools portfolio would offer a broader range of products. The aim was to create a comprehensive hand tools company that could utilize the same distribution channels as the parent company, thereby enhancing returns.

According to its strategic policy, Cooper should consider Nicholson as a desirable acquisition target. Cooper believes that acquiring Nicholson will lead to improvements in Nicholson's operations. Cooper also acknowledges that certain product lines of Nicholson are not profitable, which is a common issue in family-run businesses. Cooper's perspective is that if Nicholson focuses on its profitable product lines, it can streamline its inventory distribution network. It is worth noting that the distribution network required for selling Nicholson's products is already maintained by Cooper for its acquired hand tools businesses.