Plow & Hearth: Double Acquisition
6 Pages Posted: 21 Oct 2008
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
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