5:13 am January 28, 2011, by Henry Unger
One Atlanta-based company sells roast beef sandwiches and the Frosty. Another makes folding cartons for fast food. But that’s where the similarities end for Wendy’s/Arby’s Group and Rock-Tenn, writes AJC reporter Jeremiah McWilliams.
Both made big mergers and acquisitions news recently for different reasons.
Rock-Tenn, built on a string of business consolidations over the past 113 years, just proposed its largest yet: a $3.5 billion takeover of Smurfit-Stone, a larger producer of containerboard, the stuff that makes moving boxes. If approved, the deal will triple Rock-Tenn’s size, McWilliams writes.
Ten miles to the west, leaders of Wendy’s/Arby’s have encountered the flip side of a merger. They want to break up the company less than three years after pulling the two brands together, McWilliams writes.
The divergent paths underscore the difficulty of crafting a successful merger or takeover, McWilliams reports. Such deals create some of the diciest issues in American business: cultural clashes, loss of talented employees and financial benefits that prove elusive.
Tread carefully in the minefield, experts say.
Also in the AJC:
In other media:
- Henry Unger, The Biz Beat
For instant updates, follow me on Twitter.
Get inside Atlanta's and national business news and how it affects you.
Vacation stops, manage subscriptions and more