Orvis to buy Ross Reels and Scientific Anglers...

Lugan

Joe Streamer
#3
A decade ago Orvis' flyfishing business was a laggard (to my eye, at least). It's amazing how they've turned things around, and much of that turn-around has happened in the teeth of the worst recession/depression in a century.

Another interesting question here though is why 3M would buy Ross just a year or so ago, suggesting that they were getting deeper into flyfishing, then turn around and sell the whole flyfishing business such a short time later. It seems fickle. Then again, these kinds of things happen in big companies for a variety of reasons invisible to outsiders.
 

suckegg

Active Member
#5
I'm surprised that Orvis is well-capitalized enough to pull it off. Makes me wonder if they are financing the acquisition with quite a bit of debt....
i'm not as it's family owned right. And just how much was SA worth or even Ross? Not that much I bet.
 

JesseC

Active Member
#8
I wonder if 3M is having problems and getting out from under both Ross and SA will help them keep above water....
3M is a capital investment company as much as a product development company. Looks like they probably rekeyed both SA and Ross to use their material components and then found a buyer that doesn't have the R&D to ever change it.

It's a strategic win for 3m because orvis will be using 3m products for the life of those brands, something that 3m probably neogotated into the buying orders.
 

David Prutsman

All men are equal before fish
#9
3M is a capital investment company as much as a product development company. Looks like they probably rekeyed both SA and Ross to use their material components and then found a buyer that doesn't have the R&D to ever change it.

It's a strategic win for 3m because orvis will be using 3m products for the life of those brands, something that 3m probably neogotated into the buying orders.
That would make more sense than my suggestion!
 

Kcahill

Active Member
#10
Just please dont change the saltwater taper lines, they are the only ones that load a medium action rod just the right way :(
 

GAT

Dumbfounded
#12
Interesting. I would imagine the effects of "the movie" have worn off and flyfishing is not as popular and profitable as it was for awhile.
 

Lugan

Joe Streamer
#13
3M is a capital investment company as much as a product development company. Looks like they probably rekeyed both SA and Ross to use their material components and then found a buyer that doesn't have the R&D to ever change it.

It's a strategic win for 3m because orvis will be using 3m products for the life of those brands, something that 3m probably neogotated into the buying orders.
Interesting theory, Jesse. Depends on whether 3M sold some of the underlying technology to Orvis or not. For example, the fancy new resin 3M licenses to Hardy, Loomis and St Croix would be something I'd think Orvis would want to own and control licensing of. In any case, Orvis will get some R&D economies of scale out of this.

Another thing Orvis gets is a massively expanded retail footprint. SA is in nearly every non-Orvis shop in the US, and nearly all of it is net new retail channel for Orvis since most Orvis branded products are sold in Orvis stores and the Orvis website. There are exceptions, but you just don't see a lot of Orvis stocked in non-Orvis stores.
 

Stonefish

Triploid, Humpy & Seaplane Hater
#14
It will be interesting to see where this goes. I personally haven't liked many of the new Ross reels or SA lines that have come out lately.
The old Gunnisons, Canyons, San Miguels etc were great reels as far as durability and functionality goes. The Sharkskin lines never did it for me either.
I hope Orvis can take both companies to new levels.
 

Kent Lufkin

Remember when you could remember everything?
#15
I wonder if 3M is having problems and getting out from under both Ross and SA will help them keep above water....
3M is a publicly-traded company (NYSE: MMM), so it's financials are openly available. With a market capitalization of $72 billion it's a fricking huge company, so even if they hit an economic or market 'speed bump' it's not like they're gonna go out of business tomorrow.

In today's WSJ blog, they mention 3M as a stock to watch since they just reported quarterly earnings:

"3M Co. (MMM) posted a notable miss in first-quarter profit and revenue and cut its profit outlook for the year. Chief Executive Inge Thulin cited the stronger U.S. dollar and “softer demand in some end markets” for the outlook cut. Shares fell 3.6% to $104.40, a decline that if persists would knick about 30 points off the Dow Jones Industrial Average."

It's worth noting though that even at $104, 3M stock is just a tick off it's 52-week high of $109 and well above its low of $82. In this morning's trading, MMM is up about $0.40 which suggests that the market has absorbed the bad news above and is moving on.

Taken together, IMHO it's likely that 3M has decided that it's best strategy is to tend to its core business instead of indulging in the relatively narrow and possibly volatile contribution that fishing products may (or may not) add to its bottom line. The comment above about "softer demand in some end markets" may well describe the contraction in the flyfishing industry the past few years.

On balance, I think the purchase by Orvis is a huge coup and cements them as a key player in our sport for decades to come.

K