A Case Analysis of Ciba Specialty Chemical
Ciba Specialty Chemical’s
Case Analysis
1.) What caused Allied Colloids to become a takeover target?
On March 12th 1998 Ciba Specialty Chemicals (SC) announced its acquisition of Allied Colloids, a company known as a global leader in water treatment. Allied Colloids acquisition aligned with Ciba’s goals in the form of establishing a new pillar for profitable and sustainable growth in the area of water treatment additives. Being the ambitious company that Ciba was, they realized that Allied Colloids could be the platform they had been looking for. This would allow them to enter the water treatment market due to Allied Colloids established global market position and strong technological developments. Allied Colloids was more than just a water treatment company. The company consisted of five divisions, water treatment, additives, colors, customer care, and performance polymers. With its diversification of processes, and an entry into a high potential market, it was easy to see why Allied Colloids was the target within Ciba’s sights.
2.) How did Ciba value the gains from the merger or acquisition? The value of the gains that Ciba saw in the takeover of Allied Colloids was based on financial reporting, improving product performance as well as increasing value for their shareholders. At its core, Ciba desired to produce and sell high quality chemicals and enhance the longevity and performance of their products. Being the worldwide company that Ciba was, it was their goal to produce positive results within the global market. As a leader in biological chemicals, Ciba SC was dedicated in meeting the needs of the healthcare, agriculture, and industry. Ciba felt the acquisition between Allied Colloid would enhance the quality and value of their business as well as product performance. Ultimately Ciba’s goal is to create value for its shareholders and the acquisition of Allied Colloids is just one step in the process. Other steps include evaluation of strategic
Case Analysis
1.) What caused Allied Colloids to become a takeover target?
On March 12th 1998 Ciba Specialty Chemicals (SC) announced its acquisition of Allied Colloids, a company known as a global leader in water treatment. Allied Colloids acquisition aligned with Ciba’s goals in the form of establishing a new pillar for profitable and sustainable growth in the area of water treatment additives. Being the ambitious company that Ciba was, they realized that Allied Colloids could be the platform they had been looking for. This would allow them to enter the water treatment market due to Allied Colloids established global market position and strong technological developments. Allied Colloids was more than just a water treatment company. The company consisted of five divisions, water treatment, additives, colors, customer care, and performance polymers. With its diversification of processes, and an entry into a high potential market, it was easy to see why Allied Colloids was the target within Ciba’s sights.
2.) How did Ciba value the gains from the merger or acquisition? The value of the gains that Ciba saw in the takeover of Allied Colloids was based on financial reporting, improving product performance as well as increasing value for their shareholders. At its core, Ciba desired to produce and sell high quality chemicals and enhance the longevity and performance of their products. Being the worldwide company that Ciba was, it was their goal to produce positive results within the global market. As a leader in biological chemicals, Ciba SC was dedicated in meeting the needs of the healthcare, agriculture, and industry. Ciba felt the acquisition between Allied Colloid would enhance the quality and value of their business as well as product performance. Ultimately Ciba’s goal is to create value for its shareholders and the acquisition of Allied Colloids is just one step in the process. Other steps include evaluation of strategic