Ciba

The chemical basis and production process for Ciba-GeigyЎЇs pharmaceuticals and AirwickЎЇs room deodorizers are similar enough. The fits between Ciba-Guigy and Airwick are:

ÐŽ¤ Potential synergisms:

a. Madison Laboratories has personnel with marketing skills which may help Airwick; Airwick has the sales organization that Madison Laboratories lacks.

b. CIBA-GEIGY has money which Airwick needs to grow.

c. CIBA-GEIGY has available space and equipment whish may be useful to Airwick.

d. CIBA-GEIGYЎЇs chemical ability and research facilities could improve AirwickЎЇs products and provide Airwick with a better R&D effort with little increase in incremental costs.

e. CIBA-GEIGYЎЇs Agricutural Division has products which could be marketed by Airwick.

ÐŽ¤ Airwick is a profitable company whose earnings may have temporarily plateaued due to severe competition in the consumer segment of their business.

ÐŽ¤ The institutional segment of Airwick (Airkem Institutional Division) is in excellent shape. They have good management, good products, and a good marketing program. They participate in a large, fractured market where the leading competitor is estimated to have only 8% share of the market as compared to an estimated 5% for Airwick. There is a good potential for this division.

ÐŽ¤ The international segment appears to be a profitable part of Airwick in terms of contribution as a percent of revenues. Current growth rates can most likely be maintained.

ÐŽ¤ AirwickЎЇs present of financial position is difficult because of a need for cash. The cash shortage seems to have been caused by the recent acquisition of the Seablue Corporation for $4 million in cash, the necessity of building inventories for the aquatic segment of the business