It seems during the early- to mid-2000s, when the economy was healthy and companies flourished, every month this magazine reported a new “merger and acquisition.” Of course, those times reflected the nation’s overall healthy economic state and ambitious business growth.
But during the Great Recession, these stories have waned less and less-at least for the wall and ceiling industry. Mergers and acquisitions definitely stalled and waned.
This year, however, I’ve seen some important news on this front. Three notable transactions from 2011 have popped up: International Paper Co.’s acquisition of Temple-Inland; ClarkDietrich’s purchase of Vinyl Corp.; and last week’s news that Armstrong has bought Simplex, Intalite’s division of specialty ceilings.
For the most part, this should be good news. It does reflect some that some companies are in a position to expand again, right? But are there drawbacks? From what we can tell, no one has lost their jobs as part of these acquisitions. Companies assure customers that business will not be interrupted.
So what are the pros and cons of these mergers and acquisitions? I’d love to hear your thoughts. Write me at wyattj@bnpmedia.com