View Full Version : GENMAR to be sold
Jim Carroll
10-30-2009, 04:47 PM
From BassFan today:
Genmar will be sold 10/30/2009
In a bankruptcy court motion today, Genmar Holdings, Inc. requested permission to move forward with a sale of its assets and effectively abandon its effort toward a financial restructuring.
The news was announced to Genmar dealers in a letter from Genmar president and CEO Roger Cloutier.
The legal motion notes that both bankruptcy strategies – refinancing/reorganization and sale of assets – were pursued simultaneously, but it was determined that a sale of assets was the only tenable exit strategy.
Additionally, a stalking horse (i.e. potential buyer) has arisen. The stalking horse was not named in the motion – Genmar said to do so would jeopardize the sale process – but the motion did request that Genmar be allowed to enter into an exclusivity and expense agreement with the stalking horse. Such an agreement would preclude Genmar from entertaining offers or negotiating with other potential buyers.
The motion, however, includes language that would allow Genmar chairman Irwin Jacobs (pictured) to match or better the stalking-horse offer through a reorganization/refinancing or purchase offer, provided he act solely as a personal agent and not in connection with Genmar.
Jacobs was reportedly in court this week in the attempt to remove Ranger from the bankruptcy.
What isn't clear is whether the stalking horse has proposed to purchase all of Genmar's assets, or certain brands and facilities.
Rumors have run rampant through the industry the past several weeks that certain parties were interested in a purchase of Ranger Boats – namely Yamaha, Evinrude and a group headed by Ranger founder Forrest Wood and current president Randy Hopper that also includes Ranger employees. There's likewise speculation that Jacobs could seek to regain ownership of the Genmar bass-boat brands, which might help buoy his stake in FLW Outdoors, which he owns, but has recently encountered difficulty in a soft economy and sponsor market.
The fate of the Stratos and Champion brands remains equally cloudy.
dutchboy
10-30-2009, 05:05 PM
Should make for some interesting reading and speculation this winter.
angler53
10-30-2009, 05:36 PM
Interesting information to say the least. I've been looking for this to begin to start to move. Of course, my interest are in Ranger. I'm excited to hear that Ranger has a chance to be set aside and that it may be back in the hands of F. Woods an the employee's. After visiting Flippin and the plant, there's no doubt that Ranger Boats is very important to that local economy. I hope it works out in their best interest.
Thank you Jim,
I Walleye
10-30-2009, 07:44 PM
Can you imagine if Yamaha where to purchase Ranger? That would seriously turn the boating/tournement world upside down.
Yamy75
10-31-2009, 01:11 AM
As a local, I hope Ranger is bought by Yamaha or Woods.
corvette744
10-31-2009, 01:17 AM
A little birdy told me cabelas was more than interested.
Bandit
10-31-2009, 05:03 AM
Oh boy if Yamaha buys Ranger I can see all the Bashing going on ( Oh I can't put a Honda or Merc on my Ranger ) ( I can't buy my Ford truck with a GM Motor ) ( Oh why can't I have a choice of motors on my Ranger ) ( Oh Ranger could sell more boats if we could put are choice Motors on them ) Yes Lot's of Crying.
tzonetom
10-31-2009, 08:58 AM
Oh boy if Yamaha buys Ranger I can see all the Bashing going on ( Oh I can't put a Honda or Merc on my Ranger ) ( I can't buy my Ford truck with a GM Motor ) ( Oh why can't I have a choice of motors on my Ranger ) ( Oh Ranger could sell more boats if we could put are choice Motors on them ) Yes Lot's of Crying.
Oh that WILL happen if Yammi buys them. Of course that would make them better. :)
angler53
10-31-2009, 09:42 AM
I can see it now; Yamaha's new RangerG series, the first GlasAlum hybrid, powered by the YamaRude electrodynamic Mercury pulsedrive. Available online at your Cabela's Bass-Pro superstore, or visit your local Wal-Mart to see the complete line.
:raisin:
Jimmy Jig
10-31-2009, 10:10 AM
I heard Wal-Marts already bought them!
T Mac
10-31-2009, 11:10 PM
The latest news is --- Irwin Jacobs is bidding to buy Genmar. (Not kidding)
Hmmm....?
phowler
11-01-2009, 02:02 AM
My vote would go for FLW and employees. I would worry about what would happen to Ranger quality otherwise. If Yamaha bought Ranger I'm afraid my first Ranger would also be my last.
fish4trophy
11-01-2009, 11:16 AM
Unfortunately, in these cases, the reality is who has the most money to pay the bankruptcy court will win. Quality, integrity of the company and the potential for the company doesn't have any say in it at all. Ranger is a very good company with a good reputation and a business plan that has worked more than very well. None of that will be considered in this deal unless you have some other things going on like a judge that likes ranger boats. I am concerned that Ranger will not be able to continue in the same manner they have been.
same story
11-01-2009, 11:54 AM
It's interesting to read the comments here: "Won't buy a Ranger is Yamaha buys them", etc. Why is no one retaliating? When it was mentioned (many times) that people did not like getting a Merc with a Lund all heck broke loose.
It's interesting to read the comments here: "Won't buy a Ranger is Yamaha buys them", etc. Why is no one retaliating? When it was mentioned (many times) that people did not like getting a Merc with a Lund all heck broke loose.
Maybe, because it's only speculation, rumor, and gossip at this point? What's there to retaliate against? :huh:
Ya'll just need to relax and let them work it out and when they do they will tell us what's going to happen. No sense getting worked up over something you can't control.:chillpill:
Juls
mrbreeze
11-01-2009, 03:24 PM
"No sense getting worked up over something you can't control."
If we followed that advice, WC would only have half the number of threads lol.
"No sense getting worked up over something you can't control."
If we followed that advice, WC would only have half the number of threads lol.
No, just 1/2 the number of complainers responding to threads. :cheers:
This is all about the money. My guess is that the employee group comes up empty.
I Walleye
11-01-2009, 10:35 PM
This is all about the money. My guess is that the employee group comes up empty.
Everything is about the money nowdays. Stockholders win, to heck with everyone else.
ziemann
11-01-2009, 11:13 PM
Everything is about the money nowdays. Stockholders win, to heck with everyone else.
I am guessing that your chosen profession is not as an economist.
They are in liquidation. Stockholders get nothing. If you invested- your stock is worth nothing. Their debt exceeds their assets.
Bandit
11-02-2009, 05:59 AM
I am guessing that your chosen profession is not as an economist.
They are in liquidation. Stockholders get nothing. If you invested- your stock is worth nothing. Their debt exceeds their assets.
I Walleye & Ziemann your both right
I Walleye- When the Business is running its all about the Stockholders & Stock price ?
Ziemann- When in Bankruptcy Court its all about Money & Assets ??
I Walleye
11-02-2009, 04:56 PM
No, I am not an economist and when I said "everything is about the money nowdays" I meant everything, not just the Genmar deal. It seems decisions in the boardroom are made to make stockholders money, not to make employees or consumers happy.
Esoxchaser
11-02-2009, 05:43 PM
No, I am not an economist and when I said "everything is about the money nowdays" I meant everything, not just the Genmar deal. It seems decisions in the boardroom are made to make stockholders money, not to make employees or consumers happy.\
Lets examine how this works.
The board answers to the stockholders generally they are stockholders, therefore they have capital at risk.
The stockholders are the ones who put up the money to finance the company, they are the ones who are risking their money.
The employees are employed by the stockholders to aid them in hopefully making the investment a good (profitable) one. They have no capital to lose in this venture, they make money weather or not the people actually risked it do, at least for as long as the investors are willing to lose money.
The consumers are what it's all about. The board, investors and hopefully the employees understand that without providing quality and service that will keep consumers satisfied, the whole company will eventually collapse.
Without the stockholders risking their money, the employees have no job to start with, and the consumer will find someone to provide what they desire. I would say the people risking their money are entitled to profit.
This Genmar deal isn't about the simple outline above, it is about a lack of consumers and due to economic constraints, not a lack of quality or consumer satisfaction on Genmars part. There are Too many boat manufacturers and too much production capacity. Now it looks like the stockholders who risked the money will lose it.
Steve of Madison
11-02-2009, 05:48 PM
No, I am not an economist and when I said "everything is about the money nowdays" I meant everything, not just the Genmar deal. It seems decisions in the boardroom are made to make stockholders money, not to make employees or consumers happy.
Employees are (read SHOULD) be happy that they have a job and a paycheck. Consumers are happy when they get what they paid for. And stockholders are happy when the company makes a profit, after the employees get paid and suppliers get paid and overhead is paid. When a company is too worried about making the stockholders happy first, I will show you a CPA in charge, not someone who knows something about the business they are running.
For all you CPA's out there....that was a shot!
Hot Runr Guy
11-02-2009, 05:58 PM
\
This Genmar deal isn't about the simple outline above, it is about a lack of consumers and due to economic constraints, not a lack of quality or consumer satisfaction on Genmars part. There are Too many boat manufacturers and too much production capacity. Now it looks like the stockholders who risked the money will lose it.
But, as far as I can tell, Genmar is NOT a publically traded company, hence, no stockholders. So, other than the vendors & suppliers, who else gets hurt?
HRG
micropterus
11-02-2009, 06:05 PM
But, as far as I can tell, Genmar is NOT a publically traded company, hence, no stockholders. So, other than the vendors & suppliers, who else gets hurt?
HRG
There are still stockholders in a privately held company.
froggycon defrayed
11-03-2009, 06:18 PM
Huh? Since when?
yarcraft91
11-03-2009, 06:43 PM
Huh? Since when?
Happens all the time. "Private company" just means that shares of that company are not publicly traded. For example- startup companies are almost always private companies and often pay their employees in stock instead of cash, hoping that someday the company will "go public" and they will be able to sell the shares for real money. Many companies started that way, like Apple Computer. Cabela's was private until 2004, but you can bet there were many people with shares of Cabela's stock long before their IPO.
eyeboom
11-03-2009, 07:18 PM
Huh? Since when?
"Jacobs is the largest shareholder in privately held Genmar, with about 40 percent of its stock. Other stockholders include employees and private investors, including the family of the late Carl Pohlad, a longtime business associate who was an original investor. Jacobs estimated the Pohlad family's holdings at about 15 percent"
http://www.startribune.com/templates/Print_This_Story?sid=46664287
Boomer
Hot Runr Guy
11-03-2009, 07:43 PM
from BYM product news
http://www.bymnews.com/news/newsDetails.php?id=62259
USA. Upbeat Irwin Jacobs expects to own Genmar assets by weekend
Tuesday, 03 November 2009
In an interview with BYM News, Genmar boss Irwin Jacobs talks about his come back plans for the bankrupt boat builder.
Irwin Jacobs: It’s my plan to be the acquirer of all the [Genmar] assets. I’m in the process of doing that right now. I can’t speak other than what I believe, but I think you’ll see before the week is out; I plan to be the high bid, that’s my plan.
BYM News: Won’t you have an uphill struggle, once you acquire the assets, since boat sales are not exactly booming?
Irwin Jacobs: Well no they’re not, but I have great confidence in our companies, our people, our dealers; I can only tell you that this is not a turn around in five minutes situation, but we’ll have enough capital in there to put a lot of plans in place. The industry has changed for ever and we want to change with it. We’ve lowered our overheads, we’ve had to lay off a lot of people, but when it’s all said and done I have great faith in the industry and it will come back stronger than ever, some day down the road. In the meantime we have to manage our business in accordance with the industry.
BYM News: Will you be focussing on a particular type and range of boats?
Irwin Jacobs: We will be very aggressive in our entry level boat, all the way up to our large Marquis yachts and everything in between.
BYM News: Surely some boats must be selling better than others?
Irwin Jacobs: Positively, although I must tell you that I just received information from Statistical Surveys, they’re the third party people that do all the retail analysis of boats for the whole United States, and whilst we’ve been in bankruptcy for the last 90 days, we picked up 6% market share, where all our competitors were actually down. That was across the board in our total company.
BYM News: You introduced VEC technology some years ago, does that still play a major part in manufacturing Genmar products?
Irwin Jacobs: Very much so, that’s one of the most important parts of our business and we’ve come out with a new entry level product, called Fincraft. It’s a 17, 18 and 19 foot boat, a fishing boat that will compete against the aluminum market as well as bring new people into the industry; people are not promoting entry level products anymore because they want bigger, bigger boats.
BYM News: One of the things that killed the industry.
Irwin Jacobs: I agree and we’re going back and we’ve spent a lot of money in developing this entry level product and we’ll be launching it next spring. I will tell you that this product will be anywhere from 3 to 8 thousand dollars less than our competitors in the aluminum business and it will have a lifetime warranty that’s transferable to the next owner. This is with our VEC technology; people don’t keep a boat for a lifetime, but they want quality, they want to know that the trade in value is strong enough when the pass it on to the next person. We’ve got to bring the people in and we believe that you could end up buying our 17 foot single console with less than $150 a month payment, that’s $5 a day to own a boat. That’s in America, obviously it would be more in other countries, but the dollar is so cheap that overseas dealers should do wonderfully with this boat and we’ll be targeting the whole world with it.
Marian Martin
micropterus
11-04-2009, 06:00 AM
Huh? Since when?
Since forever
Since when did anyone start a business venture for any other reason than to make money? LOL Of course it is all about money.
Industry Guest
11-04-2009, 03:54 PM
I read this thread from begining to end and there are a few things that probably need to be brought to light.
First, "Genmar" will in all likleyhood not be sold...to anyone. The individual brands (i.e. Ranger, Stratos, Larson etc...) may be sold off, but right now you could probably "own" Genmar for $1 if you just wanted to assume the debt. Mr. Jacobs may buy SOME of the brands back through bankruptcy but rest assured, they aren't all coming back to him. Kind of ironic when you think about it considering this is how Mr Jacobs has amassed a good portion of his wealth. Buying leveraged companies from bankruptcy, stripping them down, returning them to profitability and then selling them. And by trying to "re-acquire" some of his own companies (which fell into bankruptcy under his watch I may add) he is trying the same thing.
You can make your own guesses as to who may own what when the dust settles, my money says Ranger goes back to Forrest Wood, Four Winns and Glasstron get sold to someone, anyone who is foolish enough to enter the glass runabout business, and most of the rest, if not all, simply go away. C'mon, who is buying Stratos?? It's a glorified regional builder at best. I don't know, or care what happens to the big boat companies.
As far as who makes or loses money on this type of thing, the thread was exactly correct, Genmar is a privately held company and I. Jacobs is not the sole shareholder. Interestingly enough He tried to take it public a few years ago. The IPO flopped badly and he pulled the request with the SEC.
Lastly, in the interview with the trade publication that Mr. Jacobs gave, he was quoted as saying that according to Statistacal survey, Genmar has actually increased market share while others have lost. This is at best an incredible job of slanting information, and at worst, complete hogwash. All Genmar companies combined may have increased market share in say...the Sioux Falls trade area, but nationally???? Not even close.
I don't personally believe Cabella's is a player, they really aren't a "manufacturer" and they only one they'd be going after would be Tracker/Bass Pro but there isn't anything in the Genmar line up that would even put a scare into Bass Pro. Yamaha already owns Skeeter, they need another glass fishing line (Ranger) like they need a hole in the head, and Ranger is probably the most desirable asset Genmar has. Then again, nothing the motor companies do would surprise me.
Industry Guest
11-05-2009, 08:29 AM
Textron Financial Corp. and Textron Financial Canada filed an objection to Genmar Holdings' motion relating to the sale of the company, saying Genmar needs to be more open in relating details of the sale process.
Genmar's motion, which was filed last Friday, was the first public announcement that it had "abandoned any hope for a successful reorganization and instead turned their focus and attention solely toward effectuating one or more sales of their assets," Textron said in papers filed Tuesday with U.S. Bankruptcy Court in Minnesota.
In its filing, Genmar asked the court for expedited approval of an agreement with an unidentified "potential stalking horse." That agreement, among other things, would grant this party a "lock up" for approximately 20 days and a "commitment by the estates in the nature of an expense reimbursement in an amount up to $700,000."
A hearing on Genmar's motion is set for this morning.
Calling Genmar's liquidation announcement the "most significant development in these cases since their commencement approximately five months ago," Textron said Genmar is shrouding the sales process in secrecy and depriving the court and interested parties of basic information about the process.
Textron, which said it is likely the single largest unsecured creditor in the case, believes the "secret approach proposed by the debtors renders both [Textron] and the court incapable of performing an effective evaluation of the reasonableness of the relief requested."
In court documents, Genmar said it has identified a "potential stalking horse," the "party that has submitted the best offer to date from the standpoint of cash consideration and probability of consummation." It does not, however, identify that party in order to "preserve the integrity of the sale process."
Though Genmar had been looking at other options, according to court documents, the "potential stalking horse believes that pursuit of both strategies will be dilutive of management's efforts. Therefore, it has demanded that debtors enter into the exclusivity and expense agreement."
Genmar Holdings chairman Irwin Jacobs has confirmed he is a bidder for the company. No other bidders have been publicly identified.
Blackmacs
11-05-2009, 08:55 AM
If there's only one thing that Mr Jacobs comes out of this with, it will be the VEC technology. For the near future that is the only real money maker IMO.
Chucker57
11-05-2009, 09:28 AM
Check this out about VEC Technology http://composite.about.com/cs/companynew/a/bpr_vecllc.htm
observer
11-05-2009, 11:26 AM
The real facts are that none of the individuals that have posted know anything about what is going on. There are a whole lot of guesses and vindictive suppositions but not one of them really knows what is going on.
Industry Guest
11-05-2009, 11:47 AM
The real facts are that none of the individuals that have posted know anything about what is going on. There are a whole lot of guesses and vindictive suppositions but not one of them really knows what is going on.
I wasn't aware that quoting an article that was published in print and on website, as well as legal proceedings (Textrons legal filing) could be considered either a guess, or a vindictive supposition.
It seems decisions in the boardroom are made to make stockholders money, not to make employees or consumers happy.
What an absolute ridiculous statement. Guess you never owned a share of stock in your life, huh? Invested in those stable US Gov't securities, huh? Or is all your $$ in the mattress........
When a company raises capital and there are shareholders that have $$ invested and at risk, why wouldn't they be considered when making business decisions?
I Walleye
11-05-2009, 05:23 PM
What an absolute ridiculous statement. Guess you never owned a share of stock in your life, huh? Invested in those stable US Gov't securities, huh? Or is all your $$ in the mattress........
When a company raises capital and there are shareholders that have $$ invested and at risk, why wouldn't they be considered when making business decisions?
Your statement makes no sense. I said that the decisions are made to make shareholders money and you said they should be considered when making business decisons, yet mine is an "absolute ridiculous statement?? :huh:
Your statement makes no sense. I said that the decisions are made to make shareholders money and you said they should be considered when making business decisons, yet mine is an "absolute ridiculous statement?? :huh:
No disrespect IW, but don't hide behind semantics. You are clearly complaining about that position, not supporting it. You feel a company should act for the benefit of employees/consumers and shareholders (and making money) should not be priorities.
http://www.bassfan.com/docktalk.asp?id=6770#6770
Genmar: motion granted 11/5/2009
The U.S. Bankruptcy Court of Minnesota today granted Genmar its motion to enter into a period of exclusivity with a potential stalking horse for sale of the company's assets.
Identity of the stalking horse has not been disclosed, but given what Genmar chairman Irwin Jacobs told media over the previous 2 days – that he'll own Genmar by week's end – there's every reason to believe he or a close associate is indeed the stalking horse.
What the period of exclusivity means is that from this point forward, until the period ends, Genmar may only negotiate a sale with the stalking horse. However, if it turns out the stalking horse is not Jacobs, the motion does include language that allows Jacobs to match or better the stalking-horse bid.
Still unclear is whether the stalking horse would purchase Genmar in whole or in part.
And the court order made no mention of Textron's objection, which sought more transparency in the proceedings, so the objection assumingly was overruled.
Genmar is a public company and Jacobs currently owns 40% of its stock. He's able to purchase the company out of bankruptcy as a private citizen.
karpbuster
11-06-2009, 04:20 PM
Those Stalking horses ... I remember those in a field, they run up on you and bite ya real hard.
I Walleye
11-07-2009, 07:07 PM
No disrespect IW, but don't hide behind semantics. You are clearly complaining about that position, not supporting it. You feel a company should act for the benefit of employees/consumers and shareholders (and making money) should not be priorities.
None taken but I do want the shareholders to make money, that way my 401K goes up, not down. I was just making a statement about how things run now as aposed to say 40 years ago, in the end it's all about money now more than ever.
Shorelunch
11-09-2009, 09:23 PM
Update on Jacobs (Mpls Star Tribune) http://www.startribune.com/business/69618622.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD 3aPc:_Yyc:aUnciaec8O7EyUsl
Well, it sounds like it will be another 39 days before we will know what the Ranger contingencies will be for the FLW. Good thing it's only November. :)
Juls
micropterus
11-10-2009, 09:12 AM
None taken but I do want the shareholders to make money, that way my 401K goes up, not down. I was just making a statement about how things run now as aposed to say 40 years ago, in the end it's all about money now more than ever.
It has always been about the money. 40 or 400 years ago.