Dice manufacturing company: the acquisition decision
Aliaa Bassiouny:
Textile Manufacturing
March 2021
"Dice Manufacturing Company, an established and successful textile manufacturing family business, is facing an important investment decision about inorganic expansion through the acquisition of Alex Clothing Co. and its subsidiary United Dyers. The case is intended to be discussed in an undergraduate corporate finance class. The case setting is inside Dice Manufacturing Company, where one of the founders, Nagy Toma, and his CFO Victor ElMalek are analyzing the acquisition decision in January 2015. The protagonist is Victor ElMalek, who must recommend a course of action for the company’s board. The case allows students to apply discounted cash flow valuation methods to decide on whether the acquisition brings value to Dice, and to analyze other strategic and cultural issues related to the fit between the two companies post-acquisition. The case follows the history of Dice, presenting its business model and changes that accompanied the 2011 revolution. It then moves on to outline the acquisition opportunity and provides data for students to analyze the decision. "
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