Business Case Studies & Business Publications

Albany International/Geschmay Group Merg...

Bourgeois, L. J. I...

Case

Albany International/Geschmay Group Merger

Bourgeois, L. J. III; Moscoso, Ana; Cording, Margaret

BP-0428 | Published August 28, 2001 | 22 pages Case

Collection: Darden School of Business

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Albany International, a New-York-based paper machine clothing (PMC) manufacturer, has overpaid to acquire Geschmay Group. Its paper manufacturer customers have been consolidating quickly, forcing PMC companies to do the same. Not only are the corporate and national cultures of the two firms different, but Geschmay is multicultural and poorly integrated. Albany International management must decide which plant to close in France, where the merger resulted in redundant facilities; meanwhile, French law and French culture makes it nearly impossible to move people between plants.