Hot Tub Forum

Original => Hot Tub Forum => Topic started by: Chris_H on October 11, 2006, 09:54:42 am

Title: Jacuzzi Being Bought Out
Post by: Chris_H on October 11, 2006, 09:54:42 am: http://money.cnn.com/2006/10/11/news/companies/jacuzzi_apollo.reut/index.htm?postversion=2006101109
Title: Re: Jacuzzi Being Bought Out
Post by: In Canada eh on October 11, 2006, 01:13:01 pm: I wonder whats going on over there, about 2 years ago they sold off their pump division to franklin/schaeffer(sp). I was kind of shocked considering it was pumps that started the company.
Title: Re: Jacuzzi Being Bought Out
Post by: Dr. Spa™ Ret. on October 11, 2006, 02:13:31 pm: What gets me is, Jacuzzi was/is 257 MILLION in debt.......... how can I get this kind of line of credit? ;D
Title: Re: Jacuzzi Being Bought Out
Post by: drewstar on October 11, 2006, 02:21:37 pm: Quote
What gets me is, Jacuzzi was/is 257 MILLION in debt.......... how can I get this kind of line of credit? ;D

My firend Ken Lay says incorporate. Sell stock. ;)

Appollo is buying them. Anyone know what Appollo does? And I gather from the other thread that this is NOT thier hot tub/spa division?????
Title: Re: Jacuzzi Being Bought Out
Post by: Brewman on October 11, 2006, 04:10:04 pm: Quote

Appollo is buying them. Anyone know what Appollo does? And I gather from the other thread that this is NOT thier hot tub/spa division?????

I think they just own stuff- per the CNN article they're a private equity firm or something. They must see some potential for the company if they paid almost a billion dollars for it.

It sounded like it was just their plumbing stuff- Zurn, etc....
Never knew Jacuzzi owned Zurn.
Title: Re: Jacuzzi Being Bought Out
Post by: ndabunka on October 11, 2006, 05:51:25 pm: The private equity markets are ON FIRE right now. So much so that the SEC is currently considering raising restrcitions on the way they function. Think of it as only needing about 20% to buy your house (instead of paying cash for it). The deal may be an "all cash" offer, but someone is funding it. That's what's happening with these private equity firms. It may seem that they are paying a large amount but if you generate revenues, you can extend that debt payback period for something like 8 years. 257mil/8 yields only 32mil/yr that needs to be generated to fully fund. Some here appear to think that this isn't "all" of Jacuzzi but rather a sub-set (like before) but if that was the case, I think the initial write up would have been different.
Title: Re: Jacuzzi Being Bought Out
Post by: hottubdan on October 11, 2006, 06:57:32 pm: My impression is the entire company, Jacuzzi Brands, is being aquired. Two brands specifically mentioned in some articles are Jacuzzi and Sundance.