Zoom, done?

[lynxcat]

Zoom must have a 30% share of the soft plastics market...maybe more. No way they go away but could definitely be getting acquired. 

[GetFishorDieTryin]

9 hours ago, Russ E said:

I agree someone will pick it up. They are one of the most popular soft plastics company out there. Maybe Johny Morris will buy it. He seems to control a lot of the fishing market already. 

I hope not, BPS has proven they are second to none at destroying reputable brands/products.

[Log Catcher]

1 hour ago, GetFishorDieTryin said:

I hope not, BPS has proven they are second to none at destroying reputable brands/products.

You are confusing BPS with Pradco. They are masters are ruining companies. I hope Zoom can stay like it is. I use so many of there products I would be lost without them.

[Jig Man]

1 hour ago, GetFishorDieTryin said:

I hope not, BPS has proven they are second to none at destroying reputable brands/products.

They sure are good at doing that with boat companies.

[QED]

Revenues reportedly below $50MM/yr.  Coronavirus spike in sales but new fisherpersons are increasing at a rate slower than population growth rate.  So they are a plastic bait leader in what appears to be a stagnant market, once the coronavirus effects dissipate.  Long term growth prospects look pretty sucky, whether within the industry or the industry itself. PE firms wouldn't give this a second look.  Perhaps not even a first look.

[Smells like fish]

I wonder if Zoom makes the Ozark Trail soft plastics? I bought a pack of lizards today and before the ink on the receipt was dry I had bass attacking them!!! Grab you some OT lizards and fish with confidence. Price is pretty much same as Zoom as they give you one less 6” lizard per pack. 

[jtharris3]

15 hours ago, Russ E said:

I agree someone will pick it up. They are one of the most popular soft plastics company out there. Maybe Johny Morris will buy it. He seems to control a lot of the fishing market already. 

Im a fan of Bass Pro but, if they buy Zoom I’m afraid they’ll ruin the company.

[lo n slo]

someone, say it ain’t so

[flatcreek]

It ain’t so

[CrankFate]

IDK, all I know is that fishing has been going out of style for the last 50 years. It is extremely difficult for these companies to operate now a days with a customer base that’s shrinking every year.

[Jig Man]

44 minutes ago, CrankFate said:

IDK, all I know is that fishing has been going out of style for the last 50 years. It is extremely difficult for these companies to operate now a days with a customer base that’s shrinking every year.

I don’t know where you are that fishing is going out of style.  It sure is not around here.  Campgrounds are full and used boats are scarce.  Hundreds of tournaments are held each week.  Even the high school tournaments have hundreds of boats in them.

[MN Fisher]

12 minutes ago, Jig Man said:

I don’t know where you are that fishing is going out of style.  It sure is not around here.  Campgrounds are full and used boats are scarce.  Hundreds of tournaments are held each week.  Even the high school tournaments have hundreds of boats in them.

Got that right - just Minnetonka alone has 16 tournaments scheduled for this open-water season - that's 3 a month.

[CrankFate]

33 minutes ago, Jig Man said:

I don’t know where you are that fishing is going out of style.  It sure is not around here.  Campgrounds are full and used boats are scarce.  Hundreds of tournaments are held each week.  Even the high school tournaments have hundreds of boats in them.

 

19 minutes ago, MN Fisher said:

Got that right - just Minnetonka alone has 16 tournaments scheduled for this open-water season - that's 3 a month.

Might just be saltwater because all the fish have been fished out, but you’ll hear little reports from time to time about how fishing is becoming a smaller and smaller sport every year.

 

But I see the articles that say fishing is more popular because of covid. Not where I am. It’s probably the first thing people would cut.

[QED]

The stats don't lie, regardless of local, anecdotal observations. Source: https://www.statista.com/statistics/1174479/fishing-industry-market-size-us/

[GetFishorDieTryin]

17 hours ago, Log Catcher said:

You are confusing BPS with Pradco. They are masters are ruining companies. I hope Zoom can stay like it is. I use so many of there products I would be lost without them.

No, I'm not.  BPS not only ruined or discontinued the few great products Cabelas still made.  Once they felt they had eliminated the majority of the competition in the market what little quality was left in Redhead products also disappeared.  

[FishinBuck07]

On 5/22/2021 at 9:22 AM, Russ E said:

I agree someone will pick it up. They are one of the most popular soft plastics company out there. Maybe Johny Morris will buy it. He seems to control a lot of the fishing market already. 

God I hope not!  He will definitely make sure Zoom baits are not made anymore!  He wants to control the whole industry with his crappy products and charge more money for them!

[WRB]

A buyer like Pure Fishing is purchasing the product name and products tooling etc., the Zoom name has value and recognized as a quality product. The company, employee’s however may disappear if the buyer can produce the product more efficiently at lower cost.

Tom 

[MN Fisher]

5 minutes ago, WRB said:

A buyer like Pure Fishing is purchasing the product name and products tooling etc., the Zoom name has value and recognized as a quality product. The company, employee’s however may disappear if the buyer can produce the product more efficiently at lower cost.

Tom 

If it's Pure Fishing - Zoom might stay right where it's at. Mitchell is still based in France for their design engineers, Pflueger just moved from Ohio to South Carolina, but day-to-day operations are still run by Pflueger employees...not 'run from above' by PF.

 

One thing I've noticed is that when PF buys a company, they pretty much just let it run itself with some oversight - they don't come down on it like an 8kTon gorilla and make drastic changes.

[Columbia Craw]

The only way they can take my Brush Hogs is to pry them from my cold dead hands.

[QED]

Interesting that this was purportedly structured as an asset deal.  At least the acquirer won't have to account for goodwill amortization...

[Crankin4Bass]

3 hours ago, QED said:

The stats don't lie, regardless of local, anecdotal observations. Source: https://www.statista.com/statistics/1174479/fishing-industry-market-size-us/

Thanks for the info. Where did you get this from? Are you an analyst/banker?

[QED]

6 minutes ago, Crankin4Bass said:

Thanks for the info. Where did you get this from? Are you an analyst/banker?

Just did a quick-and-dirty search (source cited in post).  Per @WRB's post above, this looks like an asset deal, which makes sense.  And to answer your question, my day job does include M&A due diligence.  

[Junger]

8 minutes ago, QED said:

Interesting that this was purportedly structured as an asset deal.  At least the acquirer won't have to account for goodwill amortization...

The purchaser will probably have to record goodwill since this will most likely constitute a business combination for GAAP and be subject to impairment testing, and the purchase price allocation for taxes would probably yield a class VI asset which would be amortized for tax purposes over a 15 year life. Probably not a bargain purchase deal where assets would be written down to less than FMV.

 

Anyways, I don't think any bass fisherman care what kind of acquisition it is as long as they keep getting 20 trick worms for $5.

[QED]

10 minutes ago, Junger said:

The purchaser will probably have to record goodwill since this will most likely constitute a business combination for GAAP and be subject to impairment testing, and the purchase price allocation for taxes would probably yield a class VI asset which would be amortized for tax purposes over a 15 year life. Probably not a bargain purchase deal where assets would be written down to less than FMV.

 

Anyways, I don't think any bass fisherman care what kind of acquisition it is as long as they keep getting 20 trick worms for $5.

Insufficient info to determine if this is a business combination for GAAP purposes, but a TM and equipment purchase needn't fall under that categorization.  But I agree with your conclusion.

[Crankin4Bass]

33 minutes ago, QED said:

Just did a quick-and-dirty search (source cited in post).  Per @WRB's post above, this looks like an asset deal, which makes sense.  And to answer your question, my day job does include M&A due diligence.  

Sorry. My eyes missed the url. 

 

Asset sale makes sense. I wonder if the family has good advice and if they are having problems managing the business since the founders death. This combined with material shortages might enable a potential acquirer to get this cheap.