West Marine Aquired

Interesting. I guess we knew this was coming. Maybe this will be a long-term home for the brand. Much as we all love to hate WM, they can be handy to have around sometimes.

This line had me scratching my head:

West Marine operates 237 locations in 38 states and Puerto Rico, as well as two e-commerce platforms reaching domestic, international and professional customers.

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Two e-commerce platforms? I know about the WM web site. What other platforms do they own?

CaptTom said:

Two e-commerce platforms? I know about the WM web site. What other platforms do they own?

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Port Supply?

CaptTom said:

Interesting. I guess we knew this was coming. Maybe this will be a long-term home for the brand. Much as we all love to hate WM, they can be handy to have around sometimes.

This line had me scratching my head:


Two e-commerce platforms? I know about the WM web site. What other platforms do they own?

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mvweebles said:

Port Supply?

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That would be my guess.

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

Im pretty sure west marine was sold to another company years ago.

kthoennes said:

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

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Made me LOL!

kthoennes said:

I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

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"...and remember, at the Soylent Corporation, it's all about our people."

I always laugh about the press releases that talk about a "merger of equals." I was directly involved in one of those years ago. Two banks, one with a very well-known name. They did a "merger of equals." The well-known name was retained. Everyone thought that the well-known bank took over the lesser-known bank.

Um, yeah, except that the CEO of the lesser-known bank became the CEO of the merged banks. The COO of the lesser-known bank became the COO of the merged banks. In fact, after the merger, about 3/4ths of the executive management were from the lesser-known bank. Board meetings were moved to the city of the lesser-known bank. The few executives that were retained from the well-known bank had their offices moved to the city of the lesser-known bank.

So, less of a take-over by the well-known bank and more of one by the lesser-known bank, and obviously not much of a "merger of equals," either.

Denver: LOL. Yeah, there is no such thing as a "merger of equals." Been there, seen that, got the T-shirt.

kthoennes: Don't forget the line about having "the same culture."

Right. Our company was part of a “ merger of equals “ except the other company was press releasing “takeover”. Lol

denverd0n said:

Um, yeah, except that the CEO of the lesser-known bank became the CEO of the merged banks. The COO of the lesser-known bank became the COO of the merged banks. In fact, after the merger, about 3/4ths of the executive management were from the lesser-known bank. Board meetings were moved to the city of the lesser-known bank. The few executives that were retained from the well-known bank had their offices moved to the city of the lesser-known bank.

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If you were to insert the names of aircraft manufacturers, you would have a pretty good description of how Boeing evolved from a "hometown engineering firm" to a mismanaged "profit center".

And just when I was getting ready to make my offer my internet went down.

High Wire said:

Right. Our company was part of a “ merger of equals “ except the other company was press releasing “takeover”. Lol

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LOL

Doomed to fail when they can't get the simple thing of communications right.

There is nothing worse than being senior enough in these things to be in the room when the lies are crafted as to what the employees will be told. You are crippled if folks leave shortly after the press release. So lies get crafted. To keep them until YOU are ready to show them the door. That's when you know that even though a survivor, you don't want to be. Its too hard on the soul.

In this case, the buyer is a buyout investment firm. Its not like there duplicate administrative departments that have to be mashed into one, with redundencies. But on the other hand, investment buyers are coming in with a plan. They may want better marketing, and boom, there goes the existing marketing department. And so forth. The CEO is probably cashing out, and knows it. The new incoming CEO will want his team, and that makes the second layer vulnerable, and so forth down the line.

kthoennes said:

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

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You left out enhancing the customer experience. Things are definitely trending in that direction. But let me circle back and loop you into that discussion.

kthoennes said:

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

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Don’t forget synergies and ubiquity!

I for one want to see the West Marine, Outback, Build-a-Bear synergistic experience at my local West Marine

And damn L Catterton has ownership interests in a ton of interesting brands and businesses

Randy Repass and his team (who sold out a few years back) changed the marine supply industry, and made a lot of smart innovations along the way. They also crushed a lot of dedicated independent one-store marine supply stores. Are we boaters better off? I'm still scratching my head.

In 1994, after six months of hard use and repeated returns for repair, I decided that my two Apelco hand-held VHFs and matching hard-wired Apelco, all purchased at West Marine, were no good. I placed them all on the returns counter and simply said, "I don't like these radios any more." After swallowing hard, the clerk refunded every dime I had paid, faithful to West's no-hassle return policy.

Before leaving the store, I bought a new suite of Standard Horizon radios, which I should have done in the first place, but we live and learn. I left that store satisfied, and didn't worry for very long about how West would recover from that transaction.

Twenty years prior to that, I would not and could not have done that to my first ever local marine supplier, Sailors' Outfitting Service (SOS), in South Pasadena, Florida. The owner, Phil Van Zandt, traded on thin margins and survived on account of his encyclopedic knowledge of boats and boating. There was no topic that he could not discuss intelligently - I so much miss our conversations.

Phil sold out to another local operator, who was building up the business in a new location when the news broke that West Marine was opening a new store in St. Petersburg. You know the rest of the story. It took a few years, but competition on price finally won out over knowledge and service.

The little epigram below that i like to share on this forum, about sail, ballast, judgement and wit, was carved on a sign that hung high up on the wall in Phil's cramped little marine supply shop. It's one of the ways that he influenced me and probably hundreds of other customers who became friends.

I guess it doesn't matter whether we're better off for the West revolution - there's no going back.

"Less judgment than wit is more sail than ballast. Yet it must be confessed that wit give an edge to sense, and recommends it extremely." ~ William Penn

I flat love that quote.

Stealing it for use elsewhere. Applicable in so many areas in life.

Thanks for that.

I went by our local West Marine yesterday, and it was still closed with a sign up saying it was due to covid-19 to protect their customers. Literally every other business in their strip mall and within sight of them was open. And considering how few people were usually in there whenever you visited, I have to say, that I suspect covid-19 might not really be the reason the doors are still shut.

Group9 said:

I have to say, that I suspect covid-19 might not really be the reason the doors are still shut.

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Yeah, even during the height of the lockdowns last spring I was able to go to a couple of WM stores. In many states they were considered "essential" and allowed to remain open, with the usual precautions. I think at that location it's simply a case of no employees left to go change the sign to "out of business."

Private equity’s familiar game plan-cut staff, lower wages, take on lots of debt, soak the company for management fees, file bankruptcy, blame something other than short term greed and mismanagement.

kthoennes said:

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

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https://www.atrixnet.com/bs-generator.html

So wasn't WM acquired a few years ago with the promise they would get back to boat stuff and less cloths?

twistedtree said:

You left out enhancing the customer experience. Things are definitely trending in that direction. But let me circle back and loop you into that discussion.

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KT....listen to this guy....he has a Nordie!!!!

Several years ago I had the pleasure (?) of working for WM in the rigging shop -- thought I'd get some real-world education and practice in a fairly specialized profession. At that point I'd already spent four years as mechanical repair and maintenance at a sailboat charter company, so I had a bit more know-how than your average bear with respect to boats and systems.

The two things I learned working there:

* WM makes more money on WM-branded products; drop what you're doing and get on the floor.

* Always push the WM protection plans, because it's free money for the corporation.

Since the manager bonuses were based on these two factors, those became our priorities. Knowledge, experience, and doing the job right received high-profile lip service but the scramble for the mighty dolla left those broken and bleeding on the floor.

I doubt a private equity firm (slogan: "All Your Money Belongs To Us") is going to reverse these operational goals. Have a heart and spend your dollars with the local guy, who definitely has more knowlege than a sales droid and will give you better value for your dollar.

That is all.

kthoennes said:

Always amusing to hear or read corporate-speak in the media around transactions like this. Very similar to professional-sports-speak. I swear I could write generic corporate press releases all day with [insert company name here] instead of actual names and they'd be completely interchangeable. Just need to throw around words and phrases like "leverage company strengths" and "consumer-centric." Heck, I bet I could write a really useful AI app to generate the statements and make a pile of cash. And then I would get acquired by a huge venture capital conglomerate (that no one has ever heard of) and I could issue a press release about my own "exciting acquisition to take full advantage of organizational depth of resources as we embrace more innovative consumer focused strategies."

I'll make a billion dollars and then I can buy the Nordie.

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:lol: Too Funny!

Alaskan Sea-Duction said:

So wasn't WM acquired a few years ago with the promise they would get back to boat stuff and less cloths?

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Yeah but their admitted ultimate goal was to get the company in good enough shape to sell at a profit.

Baker said:

Yeah but their admitted ultimate goal was to get the company in good enough shape to sell at a profit.

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I don't think selling to another private equity firm for an "undisclosed amount" is likely a profitable sale. More like passing the turd to someone else who thinks they can polishing it better. Hopefully they can.

Did zincs on the boat today.

Been shopping around for the various zincs for my boat. ZN4, Lewmar thruster anodes, etc. Found what I needed in stock thanks to Fisheries Supply, Seattle Marine Fishing & Supply, Cap Sante parts counter (for Lewmar parts).

No one place will ever have all the sizes I use, so I get to visit the cool marine candy stores in the greater area, and Covid-19 hasn't helped either.

WM? Oh yeah, they have 2 Lewmar zincs in Pt Townsend, that's it. Nothing else on my list in all the other greater Puget Sound stores. I'll stick with my fav marine candy stores.

To me West stepped on their own dick when they got greedy and went Port Supply. It seemed like, in order to offer discounts and delivery to the trade, they raised store prices opening the door again for local stores and even marinas after capturing all that business over the years by buying out or putting out of business most other sellers. Greed strikes again. Love it.