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View Full Version : Exmark Buyout?


KTO Enterprises
08-15-2007, 03:06 PM
I was at my local mower dealer today and was told about an imminent buyout of Exmark. Seems he was under the impression Husqvarna was buying exmark. Anyone else hear this?

cgaengineer
08-15-2007, 03:42 PM
As far as I know Toro owns Exmark and nobody is buying them out.... So if this is true then Husky is buying Toro (Doubtful)

Lohse's Lawn Service
08-15-2007, 03:45 PM
If ExMark was bought out, I would scream. Keep us posted if there are any more rumors.

Richard Martin
08-15-2007, 03:56 PM
The one place I rely on to confirm rumors has no word about an Exmark buyout. There are also no reports on the Web about an Exmark buyout.

TSG
08-15-2007, 04:03 PM
Toro own Exmark
A potential sale would be a matter of public record
because of the size of the company

LindblomRJ
08-15-2007, 04:49 PM
Size of company has nothing to do with buying or selling of a division. Now if a business is publicly traded then that's a different story.

GPDesign1
08-15-2007, 04:56 PM
http://www.reuters.com/article/marketsNews/idUKL2488714320070724?rpc=44&pageNumber=1

"But we also have the possibility of going back to our owners and asking for more money, so there is no real obstacle here," Andersson said, adding it was "reasonable" to assume the firm would make at least one more purchase this year.

"If the opportunity is good enough and we and the board is convinced that this is strategically right in terms of synergies and so on, then I don't think there is any real size limit."

Fun to be him!:drinkup: :drinkup: :drinkup:

TSG
08-15-2007, 05:14 PM
Size of company has nothing to do with buying or selling of a division. Now if a business is publicly traded then that's a different story.

I wasn't referring to public disclosure of publicly tradded companies.
Usually if the sale of a subsidiary is imminent it effects suppliers, distributors
franchisers ect. The selling company usually also has a known or public reason to sell such an asset,,,cash flow, too much debt, ect.
If there was to be a sale, it is unlikely to happen fast.
That is at least what a broker just told me.
But $$$$$$$$$$$$$$ does talk

KTO Enterprises
08-15-2007, 05:17 PM
My reason for saying this is the dealer I spoke to today is wanting to stock exmarks but the distributor for the area has been told to put a hold on all new dealer applications because of an eminent sale.

LindblomRJ
08-15-2007, 05:19 PM
At least its a long shot. Sounds like it is broader than Exmark. I hope not. Might be John Deere time then.

DLCS
08-15-2007, 06:34 PM
I heard the same thing awhile back.:confused:

MattsMowing3535
08-15-2007, 06:58 PM
I hope its all just rumors...

T Total Lawncare
08-15-2007, 07:13 PM
That's what I've been trying to tell everyone.:hammerhead: Husqvarna is like the Borg on Star Trek, Their going to assimilate the commercial Ztr market.:laugh: Resistance is futile. Really I hope they don't Husqvarna doesn't need any more reasons for people to hate them.*trucewhiteflag*

Grits
08-15-2007, 10:44 PM
I have a Husqvarna mower. I pray they do not buy Exmark.

puppypaws
08-16-2007, 12:07 AM
At least its a long shot. Sounds like it is broader than Exmark. I hope not. Might be John Deere time then.

I would think if that took place JD would be the only one with pockets that deep. JD can buy anything they want and will if someone sells.

You would have to carry your money to the bank all day to buy Toro.

Then again I guess Toro could sell the Exmark division because they certainly bought it.

Envy Lawn Service
08-16-2007, 02:41 AM
Well, I'm privy to a little information I can share...

It's my understanding that Husqvarna was set to 'go public' somewhere along the middle of last year... as in becoming publicly traded in a fashion separate from Electrolux, which was the point of the spin-off.

At that time they had revenues of over 4 billion just from the husqvarna group. Going public has of course made them more financially fluid. On top of it, they issued 30-some million new shares to "fund" purchases.

Toro as a whole was a target purchase, and I can see why... given the orange strategy, but a deal that would be hard to 'work' I think. Something that could happen, but not something I would bet on.

The possiblility of purchasing the eXmark division I believe would be a lot easier to work. But given the orange strategy, it makes less sense.

So I guess in a nutshell, what I am trying to say is that they could afford to purchase Toro if they could work the deal.... and the whole Toro company purchase would more effectively 'fit' their apparent strategy. On the other hand, they could certainly afford to buy eXmark, and the details would be a lot easier to work out... likely with a nice contract to continue producing Zmasters for Toro, but it doesn't 'fit' their apparent strategy as well.

But considering the RedMax purchase, if Husqvarna buys eXmark or another top producer, it would not surprise me much.

bonddude
08-16-2007, 09:00 AM
Well a while back husqvarna was bought out by BMW. But this may only be the motocycle division of husqvarna. So there is a small chance that BMW could be buying exmark?...

GPDesign1
08-16-2007, 09:54 AM
Envy: (a few observations from my outpost on Baltic Avenue…):laugh:

It seems to me, the real story to consider in a possible Husqvarna acquisition of Toro has little to do with commercial products but is instead about the effect on the overall consumer market.

Being (in relative terms) a pretty small and obscure brand, it would make little sense for HOP to buy the Exmark division alone. They can just wear ‘em out in the marketplace if they choose to. :hammerhead:

But, with over 80% of all outdoor power equipment sold through box-stores, it makes complete sense for HOP to buy Toro as a group. This purchase would give them not only the Toro and Exmark brands, but Lawnboy and Wheel Horse as well. Combined with their current products and brands, this “total package”, could utterly dominate (by a wide margin) the mass-merchant market. A combined HOP/Toro would also have such massive purchasing power that major suppliers (engines and drive systems) would become virtually captive. MTD would become even less relevant and Deere would find themselves suddenly “chained up in the pasture” as a one-trick pony. Game-over. (If this does happen, I’d start watching for Deere to make a run at MTD. They can’t continue to grow playing at only the high-end. Deere C&CP Group also has a number of ex-MTD guys who I imagine would love to spank the teacher!)

Toro’s currently trading at ~$54-55 (historical level closer to $45) with <40M shares outstanding. Their balance sheet is OK, but it ain’t a power-house. I would also imagine that a lot of those shares are held by Institutional buyers who probably wouldn’t mind to swap for a faster growing stock. With $1.5B in hard-cash on hand and basically unlimited resources for additional funding, Husqvarna could buy damn near anything they choose. Toro would be a very smart play if they can get it passed the anti-trust guys. I would think that this would very nearly satisfy the definition of a monopoly. :nono:

Hotels on Board Walk and Park Place wins the game every time.

g

puppypaws
08-16-2007, 01:29 PM
Envy: (a few observations from my outpost on Baltic Avenue…):laugh:

Husqvarna could buy damn near anything they choose.
g

That is very interesting to think Husqvarna is that strong, this day and time you hardly know who owns what and if you do that can change tomorrow.

fergman
08-16-2007, 01:31 PM
Well, I'm privy to a little information I can share...

It's my understanding that Husqvarna was set to 'go public' somewhere along the middle of last year... as in becoming publicly traded in a fashion separate from Electrolux, which was the point of the spin-off.

At that time they had revenues of over 4 billion just from the husqvarna group. Going public has of course made them more financially fluid. On top of it, they issued 30-some million new shares to "fund" purchases.

Toro as a whole was a target purchase, and I can see why... given the orange strategy, but a deal that would be hard to 'work' I think. Something that could happen, but not something I would bet on.

The possiblility of purchasing the eXmark division I believe would be a lot easier to work. But given the orange strategy, it makes less sense.

So I guess in a nutshell, what I am trying to say is that they could afford to purchase Toro if they could work the deal.... and the whole Toro company purchase would more effectively 'fit' their apparent strategy. On the other hand, they could certainly afford to buy eXmark, and the details would be a lot easier to work out... likely with a nice contract to continue producing Zmasters for Toro, but it doesn't 'fit' their apparent strategy as well.

But considering the RedMax purchase, if Husqvarna buys eXmark or another top producer, it would not surprise me much.

they say that everytime you learn something you brain gets a new wrinkle. i bet envys is worse than any dried up prune.:hammerhead:

Envy Lawn Service
08-16-2007, 01:52 PM
Envy: (a few observations from my outpost on Baltic Avenue…):laugh:

It seems to me, the real story to consider in a possible Husqvarna acquisition of Toro has little to do with commercial products but is instead about the effect on the overall consumer market.

Being (in relative terms) a pretty small and obscure brand, it would make little sense for HOP to buy the Exmark division alone. They can just wear ‘em out in the marketplace if they choose to. :hammerhead:

But, with over 80% of all outdoor power equipment sold through box-stores, it makes complete sense for HOP to buy Toro as a group. This purchase would give them not only the Toro and Exmark brands, but Lawnboy and Wheel Horse as well. Combined with their current products and brands, this “total package”, could utterly dominate (by a wide margin) the mass-merchant market. A combined HOP/Toro would also have such massive purchasing power that major suppliers (engines and drive systems) would become virtually captive. MTD would become even less relevant and Deere would find themselves suddenly “chained up in the pasture” as a one-trick pony. Game-over. (If this does happen, I’d start watching for Deere to make a run at MTD. They can’t continue to grow playing at only the high-end. Deere C&CP Group also has a number of ex-MTD guys who I imagine would love to spank the teacher!)

Toro’s currently trading at ~$54-55 (historical level closer to $45) with <40M shares outstanding. Their balance sheet is OK, but it ain’t a power-house. I would also imagine that a lot of those shares are held by Institutional buyers who probably wouldn’t mind to swap for a faster growing stock. With $1.5B in hard-cash on hand and basically unlimited resources for additional funding, Husqvarna could buy damn near anything they choose. Toro would be a very smart play if they can get it passed the anti-trust guys. I would think that this would very nearly satisfy the definition of a monopoly. :nono:

Hotels on Board Walk and Park Place wins the game every time.

g

Gary,

You and I just said the same thing in a nutshell. You did a better job of a detailed explaination though... as I remained much more vague.

Toro is certainly the target, and the purchase that fits their apparent strategy.
They would be purchasing a lot of market share, a market leading brand, and also getting into golf/sports turf.
I do think it would be hard to make happen though.

An eXmark purchase would be easier, and more like the RedMax purchase.
Buy a market leader....
But it doesn't make the sense RedMax did (EPA/CARB).

Purchasing eXmark might be a cheaper path to a decent commercial mower than trying to iron out the Yazoo/Kees-Dixon-Husqvarna though :laugh:

T Total Lawncare
08-16-2007, 10:12 PM
"Purchasing eXmark might be a cheaper path to a decent commercial mower than trying to iron out the Yazoo/Kees-Dixon-Husqvarna though"

If you can't build them buy them.:laugh:

Sammy
08-17-2007, 12:40 AM
If you can't build them buy them.:laugh:

That has been what John Deere has been doing for almost a century !

HS Football Rules
08-17-2007, 08:02 AM
Yesterday, Distributors from Exmark, JD, Ferris, Hustler, Dixon, Grasshopper all
echoed the same sentiment....HOP is coming...like it or not.
The size of the bite is the only question at this point.

If you can't beat 'um...eat 'um

tallimeca
08-17-2007, 08:28 AM
well, i posted about this a while ago, asking if anyone has heard this.......and i posted how rumor was, toro was getting out of the commercial mower bus (not the pro turf lawn bus) and everyone said i was nuts. These are rumors i've been hearing throughout the industry, being I sell both Husky and Exmark.

Considering, many of the same toro/exmark models are built on the same assembly line they just spent $$ $$ $$ on another building, if Toro was to sell off Exmark, i'm guessing they would loose (or sell off) patent rights to build the exmark stuff and slap toro decks and decals and stuff on them and would have to retool to build their own stuff. Essentially, ending Toro's commercial mower production.

Now i've never been out to nebraska, but according to my saleman, the husky plant and exmark/toro plant around on the same block in the middle of corn fields.

We'll see what happens. Rumors are rumors but maybe their some truth to them. Neither of my salesman have heard anything, and they'd tell me.

Equipment salesman are like desperate housewives, they love the gossip!!

My opinion is this, dealing with Husqvarna as a vendor has been great. They ship parts at almost 100 percent fill rate and regular ups ground is a day away. Even ordering equipment, I order a saw by 2 and have it the next day. No distributors. I can see if they have the part in stock and when it will ship before i order it. That is a great help to customers.

Exmark goes through a distributor. My distributor is great and with dealing with them out at the factory, they have been great as well.

If husky were to buy out exmark and just leave it as is, as they are with Red Max for now........who cares. Win, Win situation