Most mergers are driven by the notion, sometimes wildly mistaken, that the combination will bring both a competitive advantage. Some pairs of companies, however, seem so intuitively right for one another, no bottom-line considerations should be allowed to interfere with their matrimony. Like a box of Oreos and a glass of milk, these two were meant for one another.One aspect of American life that has been keeping up with the Dow Jones average is our waistlines. Since 1994, the percentage of adults considered overweight or obese has shot up from 55.8% to 65.9%, a bullish market (covered in barbecue sauce) indeed. In looking for partners that feed in this trough, I found two that, if merged, could make dough in both expanding and contracting economies.
The first, the obvious, is Weight Watchers International (NYSE: WTW). One of the oldest, and arguably the most successful weight loss company, Weight Watchers leverages peer- to-peer support to sell a full line of diet foods, books about weight loss and endorsed products. While its diet plan finished higher than those of other companies such as Jenny Craig in a Consumer Reports study, the fact is most customers don't succeed in maintaining their weight loss.Which is where my candidate for merger, Godiva Chocolatier, comes in. With Campbell Soup (NYSE: CPB)'s avowed intention to sell the boutique chocolate business comes opportunity for WTW to keep its hand in the increasingly tight pockets of the diet-weary. Like owning both ends of the teeter-totter, combining these two companies should perfectly hedge them for our good intentions and our craving for comfort.
The public perception of such an affiliation, of course, would have to be muted. After all, who wants to read in their Weight Watcher's eating guide that to eat a satisfying portion of Godiva's best, they'd have to borrow points into the next millennium?










