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  #31  
Old 10-31-2013, 09:55 PM
georgialawn88 georgialawn88 is offline
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I walk into JDL once a yr. thats bout it...
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  #32  
Old 11-01-2013, 08:12 AM
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ted putnam ted putnam is offline
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Originally Posted by jbturf View Post
ok it makes more sense now, I couldn't fathom how the purchase of jdl was a wise or even potentially profitable acquisition for any investor. but still how much of a savings will this equate to for TG
They can charge themselves a little less and others more. Maybe not much "savings" for them but it will be a huge "benefit"
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  #33  
Old 11-01-2013, 05:43 PM
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They can charge themselves a little less and others more. Maybe not much "savings" for them but it will be a huge "benefit"
I don't see a really huge advantage for True Green. The same Holding Company has owned Univar for years. Grant you Univar doesn't have the L&O market or Buying Power as JDL/Lesco. But you can't rob one company's Profits to make an other one you own look good. It is the SAME bottom line. I see Univar getting the biggest advantage in the form of Buying power volume discounts.

FYI Univar is a very good company with tons of support.

.
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"TG doesn't give a rats ass about being "Responsible" as long as sales/production quotas are met. That's it in a nutshell. A recipe for disaster IMO." Ted Putnam 2/28/14

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  #34  
Old 11-01-2013, 11:23 PM
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ted putnam ted putnam is offline
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Originally Posted by Ric View Post
I don't see a really huge advantage for True Green. The same Holding Company has owned Univar for years. Grant you Univar doesn't have the L&O market or Buying Power as JDL/Lesco. But you can't rob one company's Profits to make an other one you own look good. It is the SAME bottom line. I see Univar getting the biggest advantage in the form of Buying power volume discounts.

FYI Univar is a very good company with tons of support.

.
I think for the most part, you are right. The biggest advantage will be increased buying power. I realize profits can't be shifted from a company that is doing well to another that may not be doing as well. However, that increased buying power and those volume discounts are more easily passed on to or shared with a company under the same "umbrella"
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  #35  
Old 11-02-2013, 10:48 AM
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RigglePLC RigglePLC is offline
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Deere paid $133 million in 2007, when Lesco suffered some losses and their stock plunged from 14 to 5 dollars. Just before the economy tanked. They disbanded their direct sales trucks, and then sold only out of their 285 service centers.
So when Deere sold 60 percent of LescoJDL for $465 million (retaining 40 percent ownership). I think they did OK. Looks like Clark/Dubalier paid about 77 cents for each dollar of Lesco/JDL sales last year. And they get the service centers, which are in leased buildings. And probably inventory.

I don't understand why Deere would want a minority interest in Lesco/Jdl--it means they have no control over anything, right? Only 40 percent of profits and losses.
Does this mean that Lesco will come back and the John Deere name will fade out at the service centers?
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  #36  
Old 11-02-2013, 11:52 AM
jbturf jbturf is offline
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Thanks for the numbers riggle, to this day I still
Think farm tractor when I hear or read the name john Deere
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  #37  
Old 11-02-2013, 11:53 AM
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Originally Posted by RigglePLC View Post
Deere paid $133 million in 2007, when Lesco suffered some losses and their stock plunged from 14 to 5 dollars. Just before the economy tanked. They disbanded their direct sales trucks, and then sold only out of their 285 service centers.
So when Deere sold 60 percent of LescoJDL for $465 million (retaining 40 percent ownership). I think they did OK. Looks like Clark/Dubalier paid about 77 cents for each dollar of Lesco/JDL sales last year. And they get the service centers, which are in leased buildings. And probably inventory.

I don't understand why Deere would want a minority interest in Lesco/Jdl--it means they have no control over anything, right? Only 40 percent of profits and losses.
Does this mean that Lesco will come back and the John Deere name will fade out at the service centers?

John Deere got their up front, so the 40% retained stock is only gravy with no liability.

Who Knows, The Holding Company could have bought JDL/Lesco as a tax write off and not change a thing. The In's and Out's of High finance at that level is over my head. They lose money in one place so they can make more money in another by not paying Taxes. I used to buy Break Even Mowing accounts just so I could up sell Pest Control and Irrigation services.

..
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"TG doesn't give a rats ass about being "Responsible" as long as sales/production quotas are met. That's it in a nutshell. A recipe for disaster IMO." Ted Putnam 2/28/14

You can lead a Donkey to water but you can't make the Jackass Drink

"As Americans you have the right to be stupid." John Kerry

"Life is tough, but it's tougher when you're stupid.” John Wayne.
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