Suhr guitars sold off

bingefeller

Unless I'm reading this entirely wrong Suhr have been bought over by a company who specialises in vape liquid.

 

http://www.avalancheinternationalcorp.com/

http://finance.yahoo.com/news/avalanche-intl-agrees-buy-js-123450613.html

http://www.marketwired.com/press-release/avalanche-intl-agrees-to-buy-js-technologies-maker-of-suhr-guitar-otc-pink-avlp-2030545.htm

 

dindude

My first thought was @hubobulous had eventually managed to buy all of the Suhr guitars in the world.

Interesting news though, John's retirement fund looks pretty good.

bingefeller

dindude said:

My first thought was @hubobulous had eventually managed to buy all of the Suhr guitars in the world.

Interesting news though, John's retirement fund looks pretty good.

I wonder if the same quality would be maintained.  If John wasn't involved I wouldn't have the same confidence. 

axisus

bingefeller said:

dindude said:

My first thought was @hubobulous had eventually managed to buy all of the Suhr guitars in the world.

Interesting news though, John's retirement fund looks pretty good.

I wonder if the same quality would be maintained.  If John wasn't involved I wouldn't have the same confidence. 

I'm certain it will. Why would you buy a company like that otherwise?

hobbio

I haven't checked TGP yet, but I imagine there's plenty of foaming at the mouth going on. I wonder if Husky will be around to answer any of the questions or if he'll lie low.

ThePrettyDamned

axisus;674188" said:

bingefeller said:



dindude said:



My first thought was @hubobulous had eventually managed to buy all of the Suhr guitars in the world.

Interesting news though, John's retirement fund looks pretty good.I wonder if the same quality would be maintained.  If John wasn't involved I wouldn't have the same confidence. 










I'm certain it will. Why would you buy a company like that otherwise?

No idea. Ask cbs.

4string

Interesting that Suhr seems to have been sold for just about a years turnover $11m v $10m, and that is a mix of stock and cash i.e some real money, so bits of paper that might become money. I am not over familiar with the value of high-end guitar companys, but that seems cheap for a well establish brand that is in supposed good health.  

dindude

4string said:

Interesting that Suhr seems to have been sold for just about a years turnover $11m v $10m, and that is a mix of stock and cash i.e some real money, so bits of paper that might become money. I am not over familiar with the value of high-end guitar companys, but that seems cheap for a well establish brand that is in supposed good health.  

Yeah, I thought that too. Guess it deoends on how much of that turnover is profit of course.

hubobulous

John posted this on TGP:

Hey guys
I understand everyone's concern but there is really nothing to be concerned about. 
We have spent a lot of time with AVLP. They love what we do and want to help us continue on our current path of growth making great products for our customers. The last thing they want is for anything to change. 

This is all good for everyone involved. On the announcement day we celebrated with our employees. I will stress that there is no change to quality, process or personnel. You all know that there is nothing more important to me than to maintain the Suhr quality, brand and reputation that we have worked so hard to build. Obviously there are details I am not able to get in to at this point, nor am I able to address every question. From the outside looking in everything stays the same. So remember, nothing changes and I'm still here!

So doesn't seem to be a drastic change, but certainly interesting to keep an eye on for the future builds.

@dindude - I'm getting there!!

bingefeller

It seems that JS is still in charge, which is good.

 

 

frankus

They might just focus on Rasmus guitars from now on.

Wonder if that'll increase the value of existing Suhr guitars?

hubobulous

I think very little will change. Suhr is known for its custom guitars and the Rasmus line no longer exists.

Sassafras

Pre AVLP Suhr anybody?

andyoz

Doesn't every buy out start with that sort of positive spin?  In simple terms, some key people in the company have sold out their power to control things and it will probably change their direction one day.  If the company has a lean patch and their name loses some of it's selling power then watch the new owners panic...they normally chuck out the founder in the process.

I'd say the valuation takes into account the volatility of the musical instrument market.

bingefeller

Sassafras said:

Pre AVLP Suhr anybody?

yes!  I'll hold on to mine for another few years. 

 

 

andyoz said:

Doesn't every buy out start with that sort of positive spin?  In simple terms, some key people in the company have sold out their power to control things and it will change their direction.

I'd say the valuation takes into account the volatility of the musical instrument market.

Are you suggesting that maybe JS will bow out at some point in the near future?

frankus

Might stick with the amplification

andyoz

Not sure, do they need this venture capitalists money to expand or is he selling whilst the going is good?

dindude

bingefeller said:

Sassafras said:

Pre AVLP Suhr anybody?

yes!  I'll hold on to mine for another few years. 

 

 

andyoz said:

Doesn't every buy out start with that sort of positive spin?  In simple terms, some key people in the company have sold out their power to control things and it will change their direction.

I'd say the valuation takes into account the volatility of the musical instrument market.

Are you suggesting that maybe JS will bow out at some point in the near future?

I can see the current manmagement sticking around for a while but this from the press release is quite telling, or I'm reading too much into it:

 

"The Company will work with its founders and current management through this transitional period as the manufacturer continues business as usual"

andyoz

I think he's sorting out his exit plan.  Running a company like this for nearly 20 years would take it's toll no matter how much you love what you do.  Turnover of circa $10m isn't that big really for an international brand.  Your local big Builders Merchants probably has a higher turnover.

Venture Capitalists take no prisoners and will be seeking to grow this no matter what...IMO of course

hobbio

He'll take the money, sit out his contractual obligations and then start making guitars again at really low volumes/high prices for fun. Sort of semi-retirement, really.

jeztone2

Well I suspect the Rasmus or another cheaper guitar will appear. If I was spunking cash into Suhr. I'd want a return. I'd expect to see an expansion of product at various price point's so you will see what the Americans call an "Offshore" guitar. PRS seem to have done ok with the SE range & I don't think that's devalued them. But American people on guitar forums are mental anyway. I'd love to see some of them down a Sunday night blues jam with their 20 space racks & Landau Tyler's