Cooper Industry Case

Cooper Industry was organized in 1919, Cooper's initial product offering included plows, hog, troughs, kettles and stoves. By 1950 Cooper industry was a leading producer of pipeline compression engines, this products enabled the development of the growing oil and gas industry.

Cooper had experienced very cyclical earnings due to the nature of the industry so it decided to diversify its portfolio starting in1959, but, the companies that it had acquired between 1959 and1966 didn't help to decrease the earnings volatility.

By 1966 a new Cooper's acquisition strategy started.

Cooper's requirements to acquire a company had three major components.

The target company must be:

• In an industry in which Cooper could become a major player

• In an industry that is fairly stable, with a broad market for the products having large customer base.

• A leader in its market segment.

Under the new strategy Cooper industry acquired a number of important companies, Lufkin Rule Company, the first one to be acquired was the world's largest manufacturer of measuring tapes and had an established distribution system of 35,000 retail hardware store in the U.S, Canada and Mexico.

In 1969 it acquired Crescent Niagara Corporation which had a quality product line comprising of high-quality wrenches, pliers and screwdrivers.

In1979 it acquired Weller Electric, which was a supplier of soldering tools and had a production capacity in England, West Germany and Mexico.

After the acquisition of the three companies mentioned before, Cooper Industry have targeted another company, Nicholson, which has a great deal of potential for greater sales