Merger and Acquisition Strategies

Merger and Acquisition Strategies

How to Create Value

New Perspectives on the Modern Corporation series

Angelo Dringoli

The decision to carry out a merger or acquisition is certainly a risky one, not least because of the number of variables influencing the final outcome. It is also a decision frequently based on the wrong objectives and an incorrect evaluation process. With this in mind, this important new book offers solutions for reducing the high percentage of mergers and acquisitions (M & As) that fail. It adopts a normative approach, using theoretical analysis to show what managers could and should do to increase shareholders’ value through successful M & A strategies. It also explores the conditions that are suitable for favouring a certain type of M & A (horizontal, vertical or diversified) over the others. In conclusion, the book presents case studies of successful M & A strategies providing a link between theory and practice.

Chapter 12: The M & A strategies of Campari

Angelo Dringoli

Subjects: business and management, strategic management, economics and finance, industrial organisation


Campari is a medium-sized company operating in the beverage industry and particularly in the spirits, wine and soft drinks businesses. It was founded by Gaspare Campari who invented the famous red aperitif Campari with many other liqueurs. Then he passed the activity to his son Davide Campari who opened the new factory in Sesto San Giovanni near Milan in 1904; it remained productive until 2005. Davide Campari changed the firm policy, limiting the production only to drinks with a strong identity and image: the aperitif Campari and the liqueur Cordial Campari. In addition, he gave an international impulse to the company making Campari products appreciated all over the world. In 1960 Campari products were already wide-spread and well known in more than 80 countries; in subsequent years distribution covered 190 countries with leadership in the Italian and Brazilian market and an important position in the USA, Germany and Switzerland. However, it was at the beginning of the 1990s that Campari made its major transformation, becoming one of the main players in the world market of the beverage industry. Today the group is directed by managers while the majority of shares are owned by the Garavoglia family. As from 6 July 2001 Campari has been quoted on the Milan stock exchange.

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