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I'm not surprised with the acquisition, just the selling price. $70M is peanuts by today's standards.
Once upon a time, through a business relationship, I worked closely with this privately-held company; in particular with the current CEO's father. Based upon impressions formed back then, I'd say that this had to be a gut-wrenching decision for the family's shareholders; as it is with so many closely-held companies with a long history.
I have to admit I was a little surprised. both by the sale and as Fenway says, by the price. I wonder if they will continue to produce Louisville metal bats alongside the DeMarinis.
My son is hoping that this means the college he'll be attending in the fall will now be using Wilson mitts instead of Louisville Slugger....
Originally Posted by Buckeye 2015:
My son is hoping that this means the college he'll be attending in the fall will now be using Wilson mitts instead of Louisville Slugger....
As long as they keep selling "Louisville Slugger" bats, I doubt it. Like their competitors, they're very particular about the TV camera and fans in the stands catching that logo. However, nothing prevents them from making your son happy by putting the "Louisville Slugger" brand on what had been a "Wilson" mitt.
Separately, here's an interesting interview of company Chairman and former CEO Jack Hillerich III, conducted a few years ago:
Wilson is getting the intellectual property, not the whole company. Forbes had more details on the story:
"The acquisition is being described as Wilson’s purchase of Hillerich & Bradsby, Co.’s (H&B) global brand, sales and innovation rights to Louisville Slugger. H&B will continue to manufacture all Louisville Slugger-branded Major League Baseball, Minor League Baseball, amateur player and souvenir wood bats under the agreement. All such manufacturing will still take place in H&B’s downtown Louisville factory. H&B will also maintain control of the Louisville Slugger Museum & Factory and Gift Shop. The agreement additionally excludes H&B’s Bionic Gloves division and Powerbilt golf brand from the acquired assets."
Hillerich & Bradsby still owns the production of wood bats and the museum. Sales of wood bats and everything non-wood (alu, comp, gloves, etc) is now the property of Louisville Slugger (Wilson). I hope that makes sense.
http://www.forbes.com/sites/da...ired-for-70-million/
Originally Posted by Prepster:
Once upon a time, through a business relationship, I worked closely with this privately-held company; in particular with the current CEO's father. Based upon impressions formed back then, I'd say that this had to be a gut-wrenching decision for the family's shareholders; as it is with so many closely-held companies with a long history.
the family business often turns into a legacy, sometimes an unwanted burden - I have seen become almost like a trap for the next generation where they don't "want" to be there but don't know any other way...others feel it is an obligation the family. I have no doubt this was brutal process for all of those involved.
A story from the past:
In the early years of aluminum bats, many traditionalists hated the loss of the "crack" sound of the wooden bat that had given way to the "ping" of the metal bat; and, it's fair to say that there were plenty of traditionalists inside "Louisville Slugger's" parent company, Hillerich & Bradsby, who shared that view. So, company engineers were instructed to "take the ping out" of the company's aluminum bats; which they did.
No sooner had they hit the store shelves with the "pingless" bats than their sales numbers began to fall off. Why? Because the kids who used the bats had quickly begun to associate the right "ping" of their bats with a well-hit ball!
The company's reaction? The "ping" was reintroduced to their bats immediately!
We are extremely close to Louisville Slugger, they are one of our best partners.
Our goal was to partner with the top brands in baseball. Nike, Louisville, Rawlings, New Era, Evoshield, Oakley and others. Looks like Wilson will be added now.
The family atmosphere at Slugger is unique. Really good people! I hope this works out well for them.
Originally Posted by PGStaff:
The family atmosphere at Slugger is unique. Really good people! I hope this works out well for them.
Couldn't possibly agree more!