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Lesco-John Deere Buy out

Ric

LawnSite Fanatic
Location
S W Florida
Yesterday 5/03/07 The Lesco stockholders voted on rather to accept or reject the John Deere buy out offer. A public announcement is to be made on Monday 5/07/07 as to the vote results.

There are questions because one of the holding companies that owns about 25% of the stock has been making noises that they would vote against the take over.

Stay tuned for late breaking news as it occurs.
 
OP
Ric

Ric

LawnSite Fanatic
Location
S W Florida
Basically a done deal. 78% yes vote, with about 67% of eligible shares voting. There's a brief note here.
http://www.crainscleveland.com/apps/pbcs.dll/article?AID=/20070503/FREE/70503013/1003&Profile=1003
Mnlefty

It is my understanding this was the Cut off date for stockholder voting. JDL made a great deal in the fact they have paid less than the wholesale value of Lesco's inventory. However they also purchased Lesco's Liabilities. Lesco has been losing money for many years now and this buy out saved them from Bankruptcy. Yesterday I was in the local Lesco Store for the first time in quite a while. The pallets were stacked to the ceiling with product. I have never seen this store stacked so full of product in the 20 years I have known of it. My guess is this product is on consignment and JDL will be paying the bill.

BTW I believe in the next few years the Lesco name will totally disappear in favor of the JDL name. There may be a few things I will miss about Lesco, But I can't think of any. I feel Lesco has given me a few raw deals in the past and won't miss that.
 

Nathan Robinson

LawnSite Senior Member
Location
47712
lesco has much better prices. Our Lesco cant keep products in. Lescos name will still be around in 3 years. The name is well known and its in JDL best interest to keep the name.
 

upidstay

LawnSite Bronze Member
Location
CT
JDL would be foolish to get rid of the Lesco name. Sort of like buying Coca Cola and changing it to Bob's soda. Makes no sense. Ric, you seem very well versed in the inner workings of Lesco. Where do you get your info? Lesco was not on the verge of bankruptcy, just had been struggling. It's been trying to get bought out for several years now. Selling off the manufacturing operations was one step in that direction. There were rumors of a buy out for a while now, and JDL finally made its bid. As far as product stracked to the roof, it depends on when you go into one. My local stores start off the various seasons (pre-emergant, grub, etc.) loaded for bear, and gradually sell out. One store in my area sold 30 pallets of dimension in one day last week!
 
OP
Ric

Ric

LawnSite Fanatic
Location
S W Florida
JDL would be foolish to get rid of the Lesco name. Sort of like buying Coca Cola and changing it to Bob's soda. Makes no sense. Ric, you seem very well versed in the inner workings of Lesco. Where do you get your info? Lesco was not on the verge of bankruptcy, just had been struggling. It's been trying to get bought out for several years now. Selling off the manufacturing operations was one step in that direction. There were rumors of a buy out for a while now, and JDL finally made its bid. As far as product stracked to the roof, it depends on when you go into one. My local stores start off the various seasons (pre-emergant, grub, etc.) loaded for bear, and gradually sell out. One store in my area sold 30 pallets of dimension in one day last week!
Upidstay

The other reply is on my ignore list so I can only answer your reply. You make a great analogy with Coca Cola, however I believe you have the order reversed. Look at this way, If Coca Cola bought out Bob's soda pop they sure wouldn't keep the name and IMHO neither will John Deere. But rather than argue about it just wait and see. Just remember who Told You So.
 

americanlawn

LawnSite Fanatic
Location
midwest
Been buying from LESCO since 1990. They have always treated me with great professionalism and respect. We also saved much money over the years because of them. They're top notch in my book. I hope the LESCO name never goes away.

John Deere is high priced on equipment, parts and service, but great quality.
 

philk17088

LawnSite Fanatic
Location
South Central PA
lesco has much better prices. Our Lesco cant keep products in. Lescos name will still be around in 3 years. The name is well known and its in JDL best interest to keep the name.
I have consistently been able to get better prices on my materials from other suppliers other than lesco. I I have nothing against them but business wise it doesn't make sense to me to use them. I will use them for some parts for spreaders and such only because I have to.
 

tremor

LawnSite Bronze Member
Location
Stratford, CT
A company cannot lose $50 Million three years in a row & remain solvent.
Theirs is an interesting business model. The cost of that model is astounding. Lately they seem to be having trouble getting their arms around that cost so they've failed to recoup it. They'll quote certain clients below their cost to keep market share & then thoroughly hose others. Deere will need to make serious changes if they're to fully realize the potential in this venture.

I agree with Ric that the JDL name will ultimately displace LESCO on the packaging. Most industry insiders agree.

It will be interesting to say the least.
 

green horizons

LawnSite Member
Location
zone 5
I'm no expert and I don't play one on tv, but equipment-wise, the Lesco name is as good as dead. Deere makes equipment already. Kinda silly to compete with yourself. The fert. might, might retain Lesco name, since it's the "insustry standard" (according to Lesco). As for Lesco, I like their fert. and their prices locally are competitive, but I cannot stand the "what's my price today" game. They can never give me a straight answer. I buy 2 pallets on Monday and on Wednesday I need more... "What's my price today?". The southside calls, quotes price, then the northside hoses me for $5 more per bad and pretends he's doing me a favor. Lesco: goodbye, good riddance.
 
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