Introduction: 1) This report considers the potential purchase of the sodium chlorate producing plant in Collinsville‚ Alabama by Dixon Corporation from American Chemical Corporation in October 1979. The reason for this stems from the fact that American Chemical Corporation was attempting at the time to buy a controlling stake in Universal Paper Corporation‚ but the management of Universal contested this on the basis that it would be anti-competitive‚ given that they were both producers of sodium
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Bilal Al- Qureshi‚ Said Business School‚ University of Oxford 2010 American Chemical Corporation HBS Case Number: 9-290-102 Executive Summary The American Chemical Corporation (AMC) is a large‚ diversified chemical producer. In 1979‚ AMC was forced to issue a tender to sell a Sodium Chlorate plant‚ near Collinsville‚ Alabama. Dixon‚ a specialty chemicals company‚ was willing to purchase the aforementioned plant for $12m with the option to invest a further $2.25m on laminate technology. The
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October of 1979‚ the American Chemical Corporation (ACC) began looking for a buyer for the Collinsville‚ Alabama plant after successfully acquiring 91% of the shares of Universal Paper Corporation. Dixon Corporation‚ a specialist chemical company with customers primarily in the paper and pulp industry agreed to the possibility of purchasing the Collinsville plant for $12 million. This purchase will diversify Dixon’s product line‚ adding the sodium chlorate chemical‚ produced at the Collinsville plant
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Case: AMERICAN CHEMICAL CORPORATION 1. Executive Summary Dixon‚ an American specialty chemical producer‚ wants to buy Collinsville plant from American Chemical Corporation‚ another typical chemical company in 1979. Dixon wants to diversify its product line buy acquiring the aforesaid plant‚ which produces sodium-chlorate to supply to paper producers in Southeastern part of the US. This plant initially cost 12 mln. USD and additional 2‚25 mln. USD needed to buy laminate technology to increase efficiency
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GROUP SUBMISSION: Due 27 June 2011 Midnight American Chemical Corporation CASE QUESTIONS Read the American Chemical Corporation case that was handed to you. The underlying question to be answered is should Dixon acquire the Collinsville plant. In your case write-up‚ you can discuss the questions given below. Please note that the given questions are to be used only as a guide for your discussion. You do not need to answer the questions in the sequence they are presented. You can use the spreadsheet
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Executive Summary American Chemical Corporation’s Collinsville plant in Alabama is being sought by Dixon a speciality chemicals company. This plant mainly specialises in Sodium Chlorate production and fits well with Dixon’s strategy of supplying chemicals to paper and pulp industry. It would also complement Dixon’s existing product line. The plant costs $12million in investment and requires up to$ 2.25 million for upgrading to new technology. An in-depth investigation and analysis is conducted
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RESTRUCTURING NOVA CHEMICAL CORPORATION GROUP 9 ABEL BESONG NATION BOBO PAUL BOAHENG BUSAYO APANISHILE LITA ASTUTI NAPITUPULU Q1 Q2 Q3 Q4 Q5 Offered Price of $150/$160 million Acceptable: Justification of Method Market Valuation: Revenue (Sales) Multiples Revenue multiples is preferred because it is less affected by accounting choices. The approach measures the market value of the operating assets of IPD in relation to market value of operating assets of comparable
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“American Chemical Corporation” Case Summary The key problem in this case is should Signal decide to approve the acquisition of the Collinsville plant at the price and on the terms proposed in the case As per an agreement with the government‚ American Chemical Corporation needed to sell the Collinsville plant after the acquisition of Universal Paper Corporation‚ or it be in violation of the anti-trust law. In the case‚ Signal agrees to buy the entire assets of the Collinsville plant at the price
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Read the case “Zychol Chemicals Corporation” given below and concisely answer the questions that follow at the end of the case study. As a general guideline‚ please try to limit your answers to a paragraph or two for each of the questions. Bob Richards‚ the production manager of Zychol Chemicals‚ in Houston‚ Texas‚ is preparing his quarterly report‚ which is to include a productivity analysis for his department. One of the inputs is production data prepared by Sharon Walford‚ his operations
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Case Introduction The Kaiser Aluminum and Chemical Corporation and the United Steelworkers of America entered into an agreement to reserve 50% of the openings in an in plant craft training program for African Americans (Byars & Rue‚ 2008). Brian F. Weber was a white male who wanted to enter this program but was denied. Weber claimed he was discriminated against due to the fact that African American employees were accepted into a training program over senior white employees. Mr. Weber had seniority
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