More consolidation coming in the fishing world?

[kzoofisher]

Sycamore Partners, the private equity firm that owns Pure Fishing, has invested in Rapala VMC Corporation.

The move comes just a week after Rapala bought the Okuma brand and its associated property rights in Europe and Russia, declaring it as its flagship brand in rods and reels.

According to a stock exchange release from Rapala, US-based Sycamore purchased 7.5 million shares, which represents 19.23% of total shares and voting rights. The aggregate ownership increased above the 15% threshold on February 11th, says the release. The transaction makes Sycamore the second biggest shareholder in the Rapala VMC group behind Veillard Migeon & Cie., which has 15 million shares (38.46%).

Nicolas Warchalowski, President and CEO of Rapala VMC, responded to Angling International’s request for a comment by saying: ”The Viellard family has been a long-term owner of Rapala VMC and they have been instrumental, together with the Chairman of the board, Louis d’Alançon, in the strategic stewardship of the new ONE RAPALA VMC transformational journey that we are now pursuing with great initial results.

“For our company to have such a committed long-term owner as the Viellard family is a true advantage and means that the senior management team and myself get to continue with business as normal.”

Pure Fishing, which was bought by Sycamore from Newell Brands for a reported $1.3billion in 2019, currently has 19 brands, including household names like Berkley, Abu Garcia, Shakespeare, Hardy and Penn, and is the world’s biggest producer of fishing tackle by volume.

Headquartered in Columbia, South Carolina, Pure Fishing is strong in almost all tackle categories, with the possible exception of hooks, where companies like VMC, Eagle Claw, Mustad, Owner, and Gamakatsu enjoy strong market shares.

Rapala VMC, which itself has 14 brands, reported net sales of €261m for 2020 and employs more than 2,000 people in 42 countries.


https://angling-international.com/20...c-corporation/

[KPKyllo]

Thanks Kzoofisher. That's interesting stuff.

[Bobby Winds]

Does it effect the Walleye bite.....if not who gives a ship.

[kzoofisher]

I guess if you don't care about competition, pricing, innovation and variety it doesn't really matter.

[kzoofisher]

Rapala, VMC, Sufix, Storm, Blue Fox, Luhr Jensen, Williamson, Dynamite Baits, Mora Ice, StrikeMaster, Marttiini, 13 Fishing, Okuma and Peltonen

Pure Fishing Abu Garcia®, All Star®, Berkley®, Chub®, Fenwick®, Greys®, Hardy®, Hodgman®, Johnson™, JRC®, Mitchell®, Penn®, Pflueger®, Sebile®, Shakespeare®, SpiderWire®, Stren®, and Ugly Stik

[7 Mag]

Looks like two major companies controlling most of what we use, I suppose that’s becoming more common in today’s business world.

[djcoop52]

When you control the majority of the players you can control the price. This just continues more and more every year big money interests buying up the competition that they cant force out of business dont see any end in sight. Most just hide under shell corporations to avoid anti trust problems and we just keep paying, as long as big money interests can keep the laws in there favor thru lobbying and hush money it will continue. Almost impossible for some small start up to enter the game just cant compete with the dollar advantage that comes with size.

[RMBin303]

I've worked for companies owned by private equity/venture capital. Good luck to the employees. It is going to be a bumpy ride.

[bbheli]

Originally Posted by Bobby Winds

Does it effect the Walleye bite.....if not who gives a ship.

When they buy the competition they get to raise the price and discontinue things that took away from sales that they deem to be in their way without regard to what some of us want and use. It becomes all about the numbers. Sales that may have been great on a certain product for one player does not mean the buyer of that product see's it that way. Over all I think it's bad, no one that I know of has purchased the competitor and lowered the price to the consumer. They lower the cost to make and sometimes that effects the products quality yet they often raise the prices to help accelerate ROI. It dos open the door for new players but how many people are looking to start manufacturing fishing gear is a whole other question.

[bfish]

agh.....

It always seems like product lines get cheapened or disappear when there is mergers.