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Aero Performance Products, Inc. Message Board

  • voteclywproxy_p2k voteclywproxy_p2k Jul 10, 2008 6:18 PM Flag

    Dr. (lotsa) GAS

    tell me please what happened to this fiasco?

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    • i wouldn't call it a fiasco

      butler and hunsaker met late last
      summer and if you understand the
      intricacies of the two companies
      you know they don't compete directly
      but have some synergies ..

      so aero announced an loi <letter of
      intent> re: acquiring dr. gas
      that was oct of 07 ..

      over the next few months .. it became
      pretty obvious that *valuation* was
      a concern .. as i understand it ..
      family funds were co-mingled into
      the very private dr. gas over x no.
      of years .. that combined with a cba
      <cost benefits analysis> which
      apparently showed it was cheaper to
      go it alone .. ie .. the pipes aero
      needed to be done for their kits ..
      could be done in house .. and that
      came back to dilution and interestingly
      enough re: dilution .. management
      didn't want to incur that at the expense
      of their *shareholders of record*

      if you check the website and go into
      media archives .. there is more info
      from the ceo re: his decision .. i
      think it's in the feb newsletter

      so you see i view it as a positive
      and it may still come to pass .. 2
      years down the road

      but for right now .. areo closed
      their warehouse in calif .. and is
      *centralizing* all aspects of their
      business .. in their new facility
      in bluffdale .. and the best part is
      since they will have 2 sep office spaces
      one for warehousing .. and one for
      in house manufacturing for the pipes and
      their office space ..

      i'd say it's a win win

      look for some new product announcements
      within a few weeks of them completing
      the move .. among other things

      all jmo

      • 2 Replies to fourkids_8pets
      • I spoke with James (sales guy at AERO) last week regarding their products and the expected move.. he indicated that they have some prototypes that they have been working on, particularly the "kits" which require the mandrel bending for the tubing, and that they wanted to make sure they were "perfect" before moving them into production.

        He was very excited about the move into the new space. It's apparently MUCH bigger and much nicer. 2 floors for offices and then a warehouse (with high ceilings) where they can store/ship product as well as complete the inhouse manufacturing. I'm very impressed with how they are streamlining things here. Pretty slick if you ask me.

      • ty, good post