Ben&Jerry’ Homemade company, which is a leading distributor of super-premium ice cream, frozen yogurts, and sorbets across the United States and overseas. It soon became popular for its innovative flavours, made from fresh Vermont milk and cream. The company have enjoyed long-term success as a result of their social responsibility and orientation, which was balanced with product and economic objectives. Since they are trying to enhance the social life for community, the company is totally fulfilling the mission statement.
However, due to increased competitive pressure and declining financial performance, they have now been faced by the threat of a takeover. Recently four companies’ submitted offers and management is in the process of carefully reviewing each of them. This case states issues of asset control for Ben & Jerry’s Homemade, Inc. , in light of the outstanding takeover offers by four offers, they are Chartwell Investments, Dreyer‘s Grand, Unilever, and Meadowbrook Lane Capital in January 2000.
Mogan as a member of the board of directors of Ben&Jerry, Homemade for 13 years, he should be the main decision maker in the takeover issue, because he had seen the company grow both in financial and social stature. Ben&Jerry’ Homemade considered to accept one of the offers to create value in both the social mission and interest of shareholders. Comparing with other three takeover offers, I would choose Dreyer’s Grand for some reasons.
Obviously, its offer price isn’t the highest one of the four, but there are many motivations to consider. Dreyer’sGrand Company is most closely correlated with that of Ben & Jerry’s, as they are already in the business of selling premium ice cream and share the almost the same target market. Both of these two companies share the same concept of social service activities. With the takeover, Ben and Jerry’s management team would be maintained.
What’s more, Dreyer’s would operate Ben & Jerry’s as a quasi-autonomous business unit and maintains the current management team. While this would allow B & J to continue pursuing their corporate objective and still keep some controls in the process. Some other benefits for this takeover would be cost reduction, finance adjustment and expanding company’s market. The price of stocks based on P/E is 20. 99, and the stock price based on P/B is 21. 28.