This is moving as expected. Briggs would pick up tractor, walk-behind, and snow-blower business (wonder how Sears/Craftsman will feel about that?), rounding out their commercial, power gen, power washer, and marine outboard offerings.
What a great strategy. The Briggs Store, to me, is just around the corner. But can they pull off a retail strategy, when they're used to doing direct OEM sales? That remains to be seen. I just can't see them wanting to work with WalMart etc. in the long term.....
Disclaimer: As always, IMHO. Position disclosure: Flat (BGG, S, WMT)
Thanks for your update. You are consistently a timely source for info. Much appreciated. Even though there was no official press release the news was clearly out today and the stock reacted well. We just have to keep in mind that with this acquisition they would take a 30M charge (balance of A/R). I wonder how good a deal they are getting?
Only a guess right now but it appears that Murray accounted for about 10% of BGG revenues or about $200 million. If the bid price of 150 million holds and adding the 40 million receivable (assumoing it is not part of the 150) would result in a purchase price of less than 1x sales. A very good deal.
I wonder if Murray is still manufacturing snd selling product under protection of the bankruptcy court? Purchasing a going business would certainly be a lot better than trying to resurect one.
Murray's not been profitable for a few years. Mainly you have to look at the big box retailers, alll they want is better products and lower prices each year. OEM are caught between the Engine maker and the OEM. OEM have very little value added. Thus this is what happens (especially if you supply Wal-Mart and Home Depot)