Well this is certainly interesting news. Here is what we think we know at the moment. R+R states on their website that this is a merger. This seems to differ from what the WSJ, Reuters, and other financial news media are reporting, which is that UCS has acquired R+R. The name moving forward (assuming it is approved by the R+R Board and Stock Holders) will be R+R which only makes sense since they have a much better 'name' in the market place than UCS from a client perspective.
My big question is what will the management team look like in the future. Bob Brockman, the owner of UCS has been the driver of UCS since....forever. I can't imagine he will step down and have no role in this new company.
Merrill Lynch reported that the company will be taken private, a great deal of work will be done to improve the balance sheet and the financial aspect of the company (that is probably why R+R had recently announced a series of layoffs to reduce fixed overhead costs), and that the company will most likely be resold in the next 24-36 months once it is on better financial shape.
Lots more to come on this, but for the near term future I have to believe that this is a major effort to try and weld these two companies together and their corporate cultures. I know how difficult this can be having personally participaed in it within the past 2.5 years.
A recent article I read said more than 50% of the 'mergers' fail due to differences in the corporate culture. It is my opinion that these two companies cultures are VERY different.
[This message has been edited by Matt Parsons (edited 08-10-2006).]
Posted: Tue Aug 08, 2006 2:43 pm