Analysis of the Merger Between GPD and Omega

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Recommended: Mergers and acquisitions in a comprehensive study

Introduction

Company mergers do not have a good reputation of being successful. This well-known fact has made many employees of Global Parts Distributors (GPD) and Omega Environmental Technologies Company (Omega) nervous about the future of their companies. Both GPD and Omega have been very successful automotive air conditioning manufacturers and distributors. Global Parts Distributors, L.L.C. (GPD) started out as Auto Air of Macon in 1974 as an automotive A/C installation and repair shop. Over the years the business evolved, and today is one of the most knowledgeable and dependable sources for aftermarket A/C parts in the United States (“About us”, 2014). Omega Environmental Technologies Company was founded in 1989 in Dallas, Texas and is a leading U.S. distributor of aftermarket automotive, truck and off-road air conditioning products. Omega has grown its distribution to over 84 countries and the USA (“Company info”, 2014).
In late 2012 both GPD and Omega were purchased by River Associates, an investing group. Founded in 1989, River Associates is opportunistic as to industry and has invested in numerous manufacturers, high margin distributors, industrial service, business service and select non-faddish retail. The firm seeks to make investments in companies with $30-$150 million in revenue throughout the United States and Canada (Harris williams & co, 2012). River Associates decided to merge the two companies even though company mergers fail 74% of the time. Why will the merger of GPD and Omega be one of the successful 26%?

Literature Review
There are many articles, reports and studies about company mergers. All of these works explain company mergers’ successes and failures. This information can help decide whether a new...

... middle of paper ...

...environmental technologies with global parts distributors and santech industries. (2012, December 5). Retrieved from http://www.harriswilliams.com/news/harris-williams-co-advises-merger-omega- environmental-technologies-global-parts-distributors

Hromel, A. (2013). Reasons for Mergers and Their Impact on Companies. 27(1), 82-88

Leepsa, N. M., & Mishra, C. (2013). Winners and Losers in M&A Game. Journal of Management Research (09725814), 13(4), 196-208.

Trivedi, J (2014). A Study on Pre and Post Performance Evaluation of Merger and Acquisition of Top Companies of BSE and NSE. SIES Journal of Management, 9(2), 3-15.

Vazirani, N. (2012). Mergers and Acquisitions Performance Evaluation- A Literature Review. SIES Journal of Management, 8(2), 37-42.

Why mergers succeed. (2012). Retrieved from http://www.cbsnews.com/8301-505125_162- 57412985/why-mergers-succeed/

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