Plow & Hearth: Double Acquisition

6 Pages Posted: 21 Oct 2008

See all articles by L. J. Bourgeois

L. J. Bourgeois

University of Virginia - Darden School of Business

Robert Landel

University of Virginia - Darden School of Business

Tihamér von Ghyczy

University of Virginia - Darden School of Business

Abstract

This case concerns a vice president of human resources who faces the task of integrating two recent catalogue-business acquisitions in the least amount of time. Plow & Hearth must consider market synergies, internal operations, and the existing cohesive corporate culture and esprit de corps.

Excerpt

UVA-BP-0463

Plow & Hearth: DOUBLE ACQUISITION

John Whitlow, senior vice president for human resources at Plow and Hearth (P&H), was planning the integration of the two businesses P&H had just agreed to acquire from Foster and Gallagher (F&G). In addition, he was considering how the combined entity would continue its integration with 1-800-Flowers.com, P&H's parent. As he put pencil to paper, he received the news that F&G was filing for bankruptcy.

Company Background

Plow & Hearth was a national mail order catalog company specializing in “Products for Country Living.” The company's headquarters in rural Madison, Virginia, served as a constant reminder of the spirit of country living. The original Plow & Hearth catalog specialized in unique, high-quality products for country living, and the company's Plow & Hearth Country Home catalog featured home furnishings and decorative accents. The company also had two retail stores and a catalog outlet.

Established in 1980, Plow & Hearth had grown spectacularly since the days when orders were filled from the old granary on founders Peter and Peggy Rice's farm. The company received a spot on INC magazine's list of the 500 fastest-growing companies in America for four consecutive years (1986 to 1989). In 1999, they mailed more than 45 million catalogs and sales exceeded $ 80 million. By 2001, Plow & Hearth was a leader in the catalog industry and the premier source of products for country living with annual revenues totaling $ 120 million.

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Keywords: corporate culture, post-merger integration, communication

Suggested Citation

Bourgeois, L. Jay and Landel, Robert and von Ghyczy, Tihamér, Plow & Hearth: Double Acquisition. Darden Case No. UVA-BP-0463, Available at SSRN: https://ssrn.com/abstract=907948 or http://dx.doi.org/10.2139/ssrn.907948

L. Jay Bourgeois (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924 -4833 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/bourgeois.htm

Robert Landel

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

HOME PAGE: http://www.darden.virginia.edu/faculty/landel.htm

Tihamér Von Ghyczy

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

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