Abstract
Albany International, a New York-based paper-machine-clothing (PMC) (conveyer belt) manufacturer, has acquired Geschmay Group, a Germany-based competitor with operations in France, Italy, Germany, and South Carolina. Its customers, the paper manufacturers, have been consolidating quickly, forcing the PMC companies to do the same. Not only are the corporate and national cultures of the two firms different, but also Geschmay itself is multicultural and poorly integrated. Albany management is faced with the issues of (1) realizing value in a company for which it overpaid and (2) deciding which plant to close in France, where the merger has resulted in redundant facilities. One plant is modern, while the other has more highly skilled workers. Moreover, French law and French culture make it nearly impossible to move people between plants.
Published Version
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