Against the grain
Most companies have realized that establishing oligopolies in one or several business segments is the way to go, some companies still see their role as conglomerates, owning a wide variety of different businesses. Two recent deals show that a few companies, at least, still assume that they'll thrive with a seemingly miscellaneous collection of products, something that was the norm in the 1960s but si now generally seen as suicide.
The brand identity and remnants of the Polaroid company, once the high flyer in instant photography, have been sold to a private investment company, The Petters Group, for $426 million. The Petters Group owns online trade site uBid.com and catalog merchant Fingerhut. The company also specializes in selling Asian-made products under established US brand names, such as Sunbeam appliances, MasterCraft tools, SoniqCast audio players, SalGal housewares, and Aaron Change swimwear. The Polaroid line includes instant cameras, photo ID makers, monitors, printers, scanners, and other imaging equipment.
In another example of the collection of miscellaneous brands, US #3 consumer battery-maker Rayovac announced it will acquire United Industries for $1.2 billion. Rayovac has been diversifying lately to a wide variety of consumer products. In 2002, it bought German battery maker, Varta AG. In 2003 it bought the Remington electric shaver company. United Industries itself is an amalgam of acquired resources, from its humble beginning as a bolt manufacturer. .Its brands include home insecticides (Cutter, Repel, Hot Shot) and fertilizers (under the Vigoro, SatGreen, and Spectrum brands), and Canadian lawn care products (NuGro), and pet food supplier, United Pet Group (Eight in One, Marineland, Perfecto) (acquired 2004).
Many of United Industries' insecticides were acquired from Unilever, which was spinning off those products from its Chesbrough-Ponds personal care division.
It's hard to imagine much synergy between consumer batteries and lawn care products, or between instant cameras and general retail catalogues. Can such conglomerates of mid-range brands be successful in today's business climates?
3:50:16 PM 
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