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The chemical basis and production process for Ciba-GeigyЎЇs pharmaceuticals and AirwickЎЇs room deodorizers are similar enough. The fits between Ciba-Guigy and Airwick are:
Potential synergisms:
Madison Laboratories has personnel with marketing skills which may help Airwick; Airwick has the sales organization that Madison Laboratories lacks.
CIBA-GEIGY has money which Airwick needs to grow.
CIBA-GEIGY has available space and equipment whish may be useful to Airwick.
CIBA-GEIGYЎЇs chemical ability and research facilities could improve AirwickЎЇs products and provide Airwick with a better R&D effort with little increase in incremental costs.
CIBA-GEIGYЎЇs Agricutural Division has products which could be marketed by Airwick.
Airwick is a profitable company whose earnings may have temporarily plateaued due to severe competition in the consumer segment of their business.
The institutional segment of Airwick (Airkem Institutional Division) is in excellent shape. They have good management, good products, and a good marketing program. They participate in a large, fractured market where the leading competitor is estimated to have only 8% share of the market as compared to an estimated 5% for Airwick. There is a good potential for this division.
The international segment appears to be a profitable part of Airwick in terms of contribution as a percent of revenues. Current growth rates can most likely be maintained.
AirwickЎЇs present of financial position is difficult because of a need for cash. The cash shortage seems to have been caused by the recent acquisition of the Seablue Corporation for $4 million in cash, the necessity of building inventories for the aquatic segment of the business