Arctic Doesn't Buy Coleman?

[Vanguard]

A bit was made of Arctic buying Coleman.  Apparently, MAAX pulled out, much to the surprise of Arctic.  Now MAAX has been sold to a private equity firm.

Here's the link to the story:

http://www.poolspanews.com/enewsletter/hotnews/062news2.html

[Chas]

So, with all of those words, did they say that Arctic made an offer but couldn't scrape together the cash- so somebody else got it?

 8-)

[Summitman]

So, with all of those words, did they say that Arctic made an offer but couldn't scrape together the cash- so somebody else got it?

 8-)

You couldnt be further from the truth "Mr. Spa Expert", errrr I mean Chas.

[Water Boy]

So, with all of those words, did they say that Arctic made an offer but couldn't scrape together the cash- so somebody else got it?

 8-)

Old news Boys! Where you been??? Tom posted this over two weeks ago.

http://www.whatsthebest-hottub.com/cgi-bin/yabb/YaBB.pl?num=1212007101

For the record Chas, the cash was "scraped together" by Arctic. It was a done deal, and then Maxx decided they wanted to go a different direction. Maybe they just had a change of heart and didn’t want to sell out to Arctic Spas. Really don’t appreciate you trying to spin this in a negative manner towards Arctic Spas, which is not the case at all. I'm sure you were just kidding around though. 8-)

[James]

While I am sure there is much more to this story then any of us know, I don’t believe Chas has put any "spin" on anything.

The article says "As far as I knew, we had a deal,” Keirstead said. “It was a very frustrating process for us to have gone all that way and not have it come to fruition.”

The acquisition fell through because Arctic could not come up with an acceptable financing plan, according to Terry Rake, vice president/general manager of MAAX Spas Arizona Inc., based in Chandler.

“I think the world of those guys at Arctic,” Rake said. “We all thought we were very close to a deal and financing was not a concern. As bad luck would have it, it was a concern. We’re all disappointed"

Now lets rewrite the quote as if it was a neighborhood real-estate transaction that didn’t come to fruition:

[b]As far as I knew, we had a deal,” Joe Smith, VP of acme Reality World Said. “It was a very frustrating process for us to have gone all that way and not have it come to fruition.”

The escrow fell through because Barbara & Terry Conrad could not come up with an acceptable financing plan, according to Fred Johnson, owner of the 2 story house for sale on Elm St..

“I think the world of Conrad’s,” Johnson said. “We all thought we were very close to a deal and financing was not a concern. As bad luck would have it, it was a concern. We’re all disappointed"[/i][/b]

How could you read that and NOT think the Johnson’s could not get financed?

It is not a negative spin it just sis kind of what it is.

[Water Boy]

That doesn’t mean that Arctic didn't have the money to make the purchase. What that says is that Maxx didn’t accept the offer that Arctic proposed. Obviously by reading James Keirstead's quote he thought it was a done deal. They both had been working on a deal since February and it was announced mid May by both companies that it was a done deal. Then on June 12th, something changed and the deal was off, and it was Maxx that decided to go a different direction. Who knows what happened??

Maybe Maxx decided to go another direction with the private equity firm since they already were holding 270 million of their debt.

[James]

The only thing about this deal that I'm scratchin my head about is why on earth did either co send out press releases if this was not a done deal?

I have a vision of a brand new spas salesperson watching a a couple drive out of his/her parking lot and uttering the absoulte deal killer phrase to his/her coworkers:

" Man oh man, thats a for sure deal. Might as well go ahead and count it now it's so done"

I'm sure us old time spa salespeople have only heard that expression,,,oh,,,, maybe a few hundred times.

[BubbaGump]

I cannot help but notice that there seem to be some on here that regularly get their feelings hurt, or are thin skinned.  I would not care normally but I read the article and from the point of view written, there does not seem to be any question.  I am sure that I will offend some as well, and it is not my intent.  Rather, I am a fan of the facts that are contained in the article.

Quote from Article  """The acquisition fell through because Arctic could not come up with an acceptable financing plan, according to Terry Rake, vice president/general manager of MAAX Spas Arizona Inc., based in Chandler.

“I think the world of those guys at Arctic,” Rake said. “We all thought we were very close to a deal and financing was not a concern. As bad luck would have it, it was a concern. We’re all disappointed.”"""

http://www.poolspanews.com/enewsletter/hotnews/062news2.html

This is about as cut and dry as anyone could be about the circumstances.  Arctic could not come up with an acceptable financing plan, and financing was a concern.  Financing is money.  No one seems to be suggesting that Arctic is not a good company.

I dont know why you guys are so upset anyhow.  Maxx is $540 million in debt, and their spa sales have gone from $54 million in '06 to a projected $35 million in 08.  thats a $19 million drop in two years.  Why would you want them?  

The only potential benefit would be gaining a dealer network, that you could tap into, and some branding rights.

[Dr. Spa™ Ret.]

Keep in mind that spas are only a part of MAXX.

Also, a "financing plan" could include payments made over time, based upon overall sales (among other things). It's not unusual for a company to be sold for, "not a lump sum cash up front deal", and payments to be made over time, the amount of which can be reduced for any number of reasons.

But 1/2+ BILLION in debt? YIKES!

[Chas]

As has been very well said above, I did not wish to put any spin on anything. Just a simple question.






 8-)

[Water Boy]

No feelings hurt at all BG. Just very passionate about the product and the company that I sell for, that’s all. No different than Term and the rest of the HS gang. No different then JJ is for Jacuzzi, and so on.

I personally could care less if Arctic bought Maxx or not. Has nothing to do with me or my day to day operations. You are right, from the sounds of it, Arctic is better off without them. I only responded because people were claiming that Arctic Spas couldn't scrape up cash to buy Maxx, which isn’t the case. But, you are all entitled to your own opinion, just as I am!

[Summitman]

I cannot help but notice that there seem to be some on here that regularly get their feelings hurt, or are thin skinned.  I would not care normally but I read the article and from the point of view written, there does not seem to be any question.  I am sure that I will offend some as well, and it is not my intent.  Rather, I am a fan of the facts that are contained in the article.

quote]


Actually just defending the name is all that Im doing.  This board is frequented by many future spa owners and I dont want the wrong type of light shed on the Arctics name thats all.  If I wrongfully correlated scrapping cash and Watkins manufacturing on this board many people would be posting in regards to it.  Thinned skinned?  Maybe, I dont know. I just want the truth professed is all.  Keep in mind that sarcasm isnt correlated very well via a message board.

FYI Maax released the statement that the deal was done with Arctic well before Arctic was ready to make the acquisition public.  They hadnt even had a chance to let the dealers and employees aware of it before the deal was announced on Maax's website.

[Zep]

"How could you read that and NOT think the Johnson’s could not get financed?
 It is not a negative spin it just sis kind of what it is"
 
But aren't the quotes only presenting the MAAX side of the story?

Is Arctic or an unbiased lending institution stating they "couldn't scrape together the funds"?
Or just a seller that maybe decided to get a better deal somewhere else?

Why are MAAX words to be taken as gospel?

Who knows maybe it went down like this?

Chas has a house for sale.

Zep & Chas consider a deal.

Chas thinks house is worth 1 million

Zep thinks house is worth 800K

No deal is made with Zep......and Chas sells to another buyer.

Chas could claim "Zep couldn't come up with the one million cash".

Or the truth could be Zep didnt want to come up with the 1 million cash because
he didnt want to pay the asking price. Or maybe Chas got a better last minute offer?
Could be lots of reasons a deal falls through at the last minute besides the "lets assume the worst about Arctic".

[Mendocino101]

My understanding is both participating  parties liked the deal. The Bank however had a different opinion of things. Which could be for many many reasons that they did like the package and it could apply to either party.

[Zep]

"could be for many many reasons that they did like the package and it could apply to either party"

Mendo you are wise!