Your Options Are The Grace Kennedy Group For 43 Billion Or Lasco Group For 49 Billion. Which Would You Acquire And Why?
You’re looking for a company to acquire for investment purposes. You have JA$50 billion to spend. Your options are the grace Kennedy group for 43 billion or Lasco group for 49 billion. Which would you acquire and why?
Do you think the management and leadership team of the two Groups would be a major incentive?
Julian C.S. Morrison: Grace Kennedy Group for 45 Billion (2 extra Billion to get rid of the rest of the bidders.). The existing management team and leadership would be retained in order to maintain synergy and consistency in performance. Grace Kennedy’s business line is primarily driven by financial services and less on food, which has a lower beta(risk) than strictly food and higher ability to scale into the long run, especially with the new venture into micro finance. GK spans into more territories than Lasco as well, which means more room for scaling and growth into the medium and long term.
Christopher J. A. Williams: One would have to imagine that the individual with the $50 billion, understands the differences and dynamics of Market Capitalisation, Shareholders Equity, share value/ stock price and very important. Brand!! Having said that, it is important to note that the Grace Group is more diversified and in some industries, vertically integrated (pigs for example!) Hell, they even have their own commercial Bank and New Car dealership to boot! LOL.
Onel T Williams Jnr: disagree.. They don’t have a lot of vertical integration…they outsource most of what they do…vertical integration would speak to the ability to create sub businesses from your core…e.g…Lasco makes Pharma products from other ingredients it uses in its food products..example.. they can go from making sachet milk products for household use per say and then add on milk substitutes for infant foods…so what u actually mean is business segments not integrated
Christopher J. A. Williams: Onel T Williams Jnr , I did not say that Grace has a lot of vertically integrated industries. They have a few. I gave but 1 example there. Grace operates 24 different Companies and they just announced 2 more. There was no suggestion that the companies are integrated. Please read my post again. Thanks. BTW, Lasco does not manufacture/ make Pharma products. They are under license to label. Their drugs are mostly from Mexico and china. As to Aldo Antonio’s post, it’s your choice as to the investment of your $50 billion! 🙂 I Again, re Aldo’s post, you can also read up what Sushil Jain explained about the Lasco and Grace market capitalization and what it means. ~ Peace
Christopher J. A. Williams : Onel T Williams Jnr , you have good understanding and knowledge about Lasco. All good points! Wish more people would engage in discussions as confidently as u have done! And although to be true, these companies do import and label products as their own ( grace even imports coconut water from Thailand! ) they do great work here and employ thousands! ~ We need more like these! ~ Peace!
Onel T Williams Jnr: Lasco.. more diversification for the same money….Pharma, health and beauty, foods, beverages, …grace not so much past foods and non-tangibles like money services…you would have to spend a lot more to scale up …on the other hand grace’s P/E ratio might be healthier as it cost less to operate and the returns on sales better…Lasco is known for the cheap and clean approach so although they have high sales the cost to achieve that comfy margin is a hinder to consider..
Jovan Evans: Lasco: more growth potential