Manchester Reservoir

 Essay in Manchester Tank

Michael Rolland

Managing Overseer

William Cohan

Director

Merrill Lynch & Co.

two hundred and fifty Vesey Avenue

New York, NYC 10281-1330

Send: (212) 449-9283

Dear Michael jordan Rolland,

We, which has exceptional experience that manufactures, and monetary areas is highly interested in producing a bid to obtain 51% of Manchester Tank's stock. We valued the organization at $120M for 100% stock, and we would like to generate a bid value of $61M to acquire 51% of the organization. We believe our experience in manufacturing and economical areas will enable all of us to develop Manchester Reservoir along with the Reifschneider brothers both equally locally and internationally. Our strategy to work and expand the business, and also all the other package terms and details are explained extensively in this doc.

I. Strategy

1 . Current Product Line Approach – We certainly have analyzed Stansted Tank's product line and have identified a distinct strategy for each with their current products:

a. RV Cylinders – Product sales of RV Cylinders come to $15M in 1995 also it would make up 11% of MT's revenues. Earnings from MOTORHOME Cylinders and unit revenue are expected to remain constant. MT controls 65% of the travel and leisure trailer marketplace and 73% of the motor home market. With strong customer relationships with Fleetwood, Coachman and JayCo we think that RV Cyl is an important part of MT's products. But marketplace demand for RVs has dropped recently therefore our strategy is to keep this product range and boost operational efficiencies through a fast one year ownership of Manufacturing Reference Planning " MRP II” and making use of our foreign growth want to negotiate better pricing from MT's suppliers.

n. Gas Bbq grill Cylinders – Sales of gas bbq grill cylinders represents 23% and over $32M of MT's revenues. MT presently supplies the 5 largest grill manufacturers: Sunbeam 50% of products, Thermos totally, W. C. Bradley 15%-20%, Weber-Stephen 90% and Placer Grill 30%-40%. Manchester container owns 45% of the US gas grill market, which is estimated to be growing between 5%-12% annually. Our technique is to develop this product series through the current buyers. Our aim is to possess MT's bbq grill cylinders in at least 75% of our top clients' products. The CEO prospects sales inside the gas bbq grill cylinder collection. Our strategy is to seek the services of another VP of Revenue to take most of the sales burden off the CEO while still using the CEO's existing associations with the 5 major suppliers. MT potential strategy for gas grills will incorporate a focus prove unmatched quality and safety measures, including the new addition of the " Stop-Fill” device.

c. Mass Selling –With a CAGR of 38% to get revenues and 33% intended for unit sales from 1992-1996, mass selling has a big growth potential in the next 5-10 years. Mass merchandising can be witnessing the boom of home improvement stores such as Lowes and Home Lager along with wholesale golf clubs such as BJs and Costco. As customer preferences in order to these retailers, we intend to ride the growth wave and position MT's propane tanks while premium goods with a great emphasis on quality and safety measures such as the " Stop-Fill” system.

deb. Air Receivers for Compressors – This device line represents 15% of MT's income and is predicted to grow slightly within the next 5-10 years due to the embrace use of air flow powered tools. We want to maintain this device line and hire even more engineers to provide better customization for MT's largest customers. More technicians will allow us to improve MT's already exceptional customer service.

e. Propane Cylinders–Propane cyl are MT's largest products, making more than $35M and accounting for any quarter of MT's revenues. This area features seen significant growth in revenue progress and device sales with 1992-1996 CAGR of 15% and 35% respectively. All of us plan to increase this product through international markets in India, Sydney and New Zealand where the most popular US item, the 420lb cylinder, is utilized for cooking,...


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