Theses, Dissertations, and Capstone Projects

Year of Award

1993

Degree

Master of Business Administration (MBA)

College

College of Business & Professional Studies

Degree Program

Business Administration

Department

Business Administration

Keywords

stockholders, shareholders, stock, debt, investors, financing

Abstract

The takeover of Beatrice International Food Company by Mr. Reginald Lewis was a leveraged buyout. This procedure entails a group of investors who are focused on a company that they perceive to have a weak management team. This weakness is often portrayed by falling stock prices/ and general dissension among the company's stockholders.

Mr. Lewis was able to purchase Beatrice Food Company through the assistance of the investment banking firm of Drexel Burnham Lambert. This firm has long had the distinction of being a maverick in the investment banking industry. Drexel Burnham arranged for the financing necessary for Mr. Lewis', through his corporate acquisitions firm of TLC, The Lewis Company, to gain control ,of the company and take it private. The intentions of Mr. Lewis before his untimely January 1993 death was to maintain control of the company until such time as the corporation’s growth and investment desirability would ensure a sizable profit for Mr. Lewis and TLC. Mr. Lewis also knew that his actions would not only strengthen TLC, but also Beatrice, as the company's stock prices would increase, and the growth of the company's position in its industry would also expand, due in no small part to the actions of Mr. Lewis and TLC Beatrice.

The achievements of a dynamic individual such as Mr. Lewis live on despite his death to inspire countless young people to achieve their goals. Because Mr. Lewis was an African-American, his triumphs should be realized for the positive impact they can have on a person regardless of their race, nationality or gender.

Document Type

Restricted Thesis

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