1. What kinds of companies does Hanson acquire?

2. Does Hanson add value to the companies it acquires or is it just another asset stripper?

3. Why is Hanson so successful with its acquisitions?

4. How does Hanson control its divisions? What are the consequences of these controls?

5. Is Hanson right to de-emphasize synergies between operating companies?

6. How dependent is Hanson’s continuing success as an acquisition machine on the Hanson/White team?

7. Is breaking up Hanson and returning the gains to shareholders the logical thing to do once Hanson and White retire?

This case concerns a company that has managed to create value by pursuing a strategy of unrelated diversification. It is a rare thing indeed to find a conglomerate company whose corporate strategy has added to rather than dissipated shareholder value, but Hanson seems to be just such a company. It has made a virtue out of acquiring poorly run companies and restructuring them. In doing so, it has gained a reputation for being one of the most successful takeover machines in the world.

The case opens with a review of Hanson PLC’s 30-year history from a small British company to one of the largest conglomerates in the world, with significant operations in both the United States and the United Kingdom. The case moves on to discuss Hanson’s acquisition philosophy and then reviews the main features of the company’s internal organizational structure and control systems. The case closes with a detailed account of two of Hanson’s most famous acquisitions, the 1987 takeovers of SCM Corporation and the Imperial Group.