Dutch are winning alot this world cup- including duravent

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theheatelement

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Simpson Dura-Vent sold to Dutch company
By Richard Bammer / The Reporter
Posted: 07/02/2010 01:02:08 AM PDT

The parent company of Simpson Dura-Vent has sold the Vacaville firm, which designs and makes venting systems for gas and wood-burning stoves, to a Dutch company that makes similar products for European markets.

M&G Holding and a newly formed subsidiary paid $20 million in cash. The deal is expected to close in September. Simpson Dura-Vent will take a pre-tax, noncash charge, estimated to range between $25 million and $30 million, in the second quarter, officials with Simpson Manufacturing Co. in Pleasanton said in a press release issued Wednesday.

Virtually all Dura-Vent employees, some 200 to 400 depending on the season, are expected to keep their jobs, said Steve Eberhard, president and CEO of the company, located at 877 Cotting Court.

"Overall, the picture is quite good with this change," he said Thursday afternoon from his office, part of a 7-acre complex that covers the equivalent of five football fields in northeast Vacaville. "Even the board of directors of Simpson expressed optimism about the future" of the company.

The prospects for growth are much better with the new company than with Simpson because M&G's plastic venting materials have been developed and sold in Europe for the past 15 years, Eberhard noted. M&G vents are used in high-efficiency gas-burning appliances, among them water heaters, tankless water heaters, furnaces and boilers.

M&G is the "clear market leader" in Europe, and, like Dura-Vent, only makes venting
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products, Eberhard pointed out, adding that the company, based in Assen in the Netherlands, was "attracted to Dura-Vent for its reputation for quality, engineering excellence and a national network for distribution."

He said company officials offered "assurances" that the Vacaville manufacturing plant, which tallied $60 million in annual revenues last year, would be its North American headquarters.

Technically, in accord with state law, the employees have been notified 60 days in advance that they will lose their jobs but, in September, will be offered "substantially equivalent" jobs with the new owner, Eberhard said.

"It's a pleasure to see them looking after those things when a lot of companies just look at the bottom line," he said.

The price of Simpson Manufacturing Co. stock, listed as SSD on the New York Stock Exchange,
 
Fantastic. I just have to run out and buy pipe made by people that kinda, sorta, hope they have a job in September. :coolsmirk:

So now even the freakin Dutch are buying up our manufacturers. What's next, Bangladesh buys HHT?
 
They say they aren't letting anyone go, but that they will employ a 60 day rule on telling employees before they will be terminated.. expect prices to rise as Europeans value their products more...
 
Yeah I spent a lot of years having to tell people that. Then one day a guy told me that. I was gone in thirty days. Couldn't say I was surprised.

The big problem is that when this stuff is announced employees literally freeze until it settles out. Nothing gets done.
 
TheHeatElement said:
BB did we just agree....

Only if you were inferring that they are going to get rid of people. And the guy that sent me a reply email from Simpson that had nothing to do with the question I asked should be the first one that they lay off. It was filled with fear that I was going to do something that I never said anything about doing.
 
Hup, Holland, Hup!
 
They only paid 20 million in cash for the deal- i'm hoping all of their buildings were leased because that's not a lot of money....
 
Simpson Manufacturing is preparing to take a twenty five to thirty million dollar pre-tax hit on the sale by writing down the value of the assets versus the sale price. Appears they just wanna get the heck out.

A whole new meaning for "going Dutch".
 
Expect prices to raise drastically as they were selling product at cost...
 
The first thing I expect is that their products will disappear out of Home Depot and Lowe's.
 
(Baseless rambling deleted)
 
Makes me think I should re-think buying that Super Vent at Menard's.

Thoughts?
 
Nah. I think they are fine. I don't recall seeing anybody here that has had any problems with their products. Looking further I can't find any issues with their stuff. I was just talking through my hat.
 
BrotherBart said:
I was just talking through my hat.

You?!? I find that kind of hard to believe! :cheese:
 
No, because I'm still paying off my wife's dental bill so the decision remains moot.

I think the T6 still makes the most sense but I really love the Oslo in the B/B enamel. I do have enough wood that will fit in the Morso ready for this winter if I can't do anything but i will have to do something by next year as I've got over 12 cords cut that need a bigger stove.

Did you ever hear back fro your local PE dealer on our package deal?
 
Here is what happens with almost every buyout or takeover: the takeover-ers swear no one will be laid off an prices will not rise. This is cover for the board of directors for the takeoveree. They can feel good about cleaning up, they get tons of money and no one loses a job.

Flash forward a few months: the takeoverer must justify the outlay, in money and etc., on their end and so, costs must be drastically cut. People are fired, prices rise.

The promises are cover for the seller; they don't have to face angry and fearful employees, or they face them but say, hey, don't worry, no one will go.

Modern business. I doubt that stovepipe co's are any different.
 
Price increase effective sept 1st- which is the first full day of ownership
 
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