Big Dog Looking For Investors

[alhall88]

Breaking News. Big Dog Motorcycles Looking For Additional Capital, Merger Or Investment.
Published by Cyril Huze December 11th, 2009 in Builders, Customs, Editorial and Events.
Yesterday Big Dog Motorcycles contacted me to share their intention to look for additional capital to face the current financial realities. To avoid any misinterpretation of President Sheldon Coleman’s intentions, I agreed not to release the information until an official press release would be issued. You can now read it first in my Blog.

Big Dog Motorcycles Announces Engagement Of William Blair & Company To Evaluate Merger, Sale Of, Or Additional Equity Investment In The Company.

Big Dog Motorcycles® announced today that its principal owner had hired the investment banking firm of William Blair & Company to assist in evaluating a possible merger, strategic partnership or sale of Big Dog or its assets. Big Dog and its shareholders will also consider selling additional equity to add capital, other financing options or a recapitalization of the company.

Sheldon Coleman, the founder and principal shareholder of Big Dog Motorcycles explained that “Big Dog has been a consuming passion of mine for over fifteen years. With over 25,000 bikes on the road, the company and its employees, dealers and suppliers have succeeded in building a business that started in my garage into the dominant motorcycle manufacturer in the premium, high performance sector of the motorcycle market.”

The challenging market conditions have demanded an ever-increasingly larger commitment from Mr Coleman whose passion for the company, exacting standards of quality and commitment to customer service have earned Big Dog consistent rankings as the premiere motorcycle in its class.

Coleman said, “During this process, Big Dog will continue to sell and develop our cutting edge motorcycles, as well as service our dealers and consumers needs for warranty, additional parts, accessories and apparel. Given the unprecedented, difficult market conditions, I strongly believe that Big Dog needs to add other equity partners or transition to new ownership to continue to develop and build Big Dog’s innovative products and capitalize on the rebounding economy. I am excited to continue leading Big Dog during this transition and, hopefully, will be part of the team taking Big Dog to the next phase of its growth.”

Coleman continued, “We continue to invest in dynamic long-term strategies, such as international distribution, as well as new models designed to excite and expand our marketplace. Our dominant market share in our niche will propel the company’s success as the economy recovers, and I am looking forward to finding a capital source that will share Big Dog Motorcycle’s vision of a vibrant future.”

Recently, the company has expanded distribution into Canada, as well as introduced several compelling new models. At the top end of its range, the Wolf has received accolades from both consumers and the trade as the most innovative premium cruiser motorcycle in its class. In addition, the all new Bulldog has taken touring motorcycling to a new level of style and performance. For the more price conscious custom motorcycle rider, the redesigned Coyote blends cutting-edge styling with an approachable design.

Coleman closed commenting, “At Big Dog Motorcycles, we have the finest suppliers, the most committed dealers and the most ardent consumers in our niche. As we seek new capital, we believe that Big Dog Motorcycles has yet to reach its full potential.”

Please direct investment inquiries via email to investment@bdm.com or via phone at 800.539.5729. William Blair and Company will respond to investment inquiries.

 

[chacha]

tis a pitty. No good can come from this....when the owner wants out, it will happen one way or another. The language used gives him every option possible.

 

[LUPHOLE]

this economy is ugly! and it looks to me like it will stay ugly for a time to come. looking at options beats the hell out of closing the doors. let's hope for the best.

 

[Eric]

just hope the same thing that happened to HD when amf got involved, dosent happen to bdm... god help us if a furby motor gets put on a dog....

 

[Five Five]

interesting post AL.... Investors....risky business...
thanks for the info.

 

[KnotSo]

HD was looking for capitol not long ago and the Oracle of omaha came to the rescue.

As always, Sheldon is being proactive.

 

[2004BC]

If it ends up with investment/venture capitalists as part or full owners Sheldon's long term vision will be out the window. It will be all about maximizing profit with short term decision making being the mantra and how soon can the company be flipped. Not a very positive turn of events for BD.

 

[Alicat]

Interesting, especially with the OCC boy Paul Jr. hired to upgrade a Coleman grill.

 

[Raywood]

Interesting, especially with the OCC boy Paul Jr. hired to upgrade a Coleman grill.

Ha ha, wasn't that some shit!!! :loony:


Anyway, Sheldon hasn't owned Coleman in 15-20 yrs now.

 

[Nomad2day]

Anyway, Sheldon hasn't owned Coleman in 15-20 yrs now.

Wasn't he bought out by the stockholders to save the company?

 

[KnotSo]

I would bet that all of Sheldons investments, like all of us, are on the rocks. Sheldon may have been hit harder than most and is looking at all possibilities.

Whatever happens, Sheldon will always be known as the visionary who had a dream and made BDM what it is today by following his dream from garage to the #1 custom production on the Planet.

Sheldon has brought new meaning to Customer Service with a higher expectation for all other companies to aspire to for thousands and thousands of us.

:flag:Sheldon, whatever happens, You Da Man!:2thumbs:

 

[MARV]

first time ive ever been called ardent

 

[Vegas]

There is NO money in owning big dog in the next 5 years.

 

[gixxbynite]

i am glad the owner is being proactive. but the reality is there is simply no market for these bikes at this time due to the fact people are broke. and those that are in the market for bikes are not looking at high end bikes such as these, they are going for entry level bikes and maybe even with sportbikes. i would say the market of 12k or less is all thats really selling.(easier financing and or no need for financing) when people do come across money they are not thinking about spending it on bikes. they are capitalizing on the low prices of inventory homes, land,and stocks. things that will appreciate. a company such as this one thrives in a vibrant economy where there is plenty of money coming in and out and job security. and thats not the case in america nor will it be for along time. sad to say it but its the truth. it will take the U.S a long time to get out of double degit unemployment/ under employment and stagnant new job growth. and these are the things needed to make this company thrive again. also these things equal bike sales. as a potential interested investor myself i analyzed the situation and i cant see where i would gain a positive return with funding for growth and new product development in this economic situation. or anytime soon. of course my cash position is not that of a large company, but it is my honest money. so i would like to invest to help keep jobs and help the company thrive. however i cant see the future in growth. rather it seems to be an investment to stall for time. in any regard i hope the company survives. i am in the market for another bigdog bike, so that will help sales a little , but not enough.

 

[jimizee028]

Bullshit....not everyone out there is unemployed or hit by this economy as hard as the working middle class...the issues are the very same banks that our tax dollars bailed out will no longer lend money to those that helped them stay afloat...and therefore no money to loan.no big purchases to be made.....
They surely will tack on 10 to 15 more points on your credit card though for all that frivilous spending,once youve frivilously spent the batch of it.....

 

[gixxbynite]

Bullshit....not everyone out there is unemployed or hit by this economy as hard as the working middle class...the issues are the very same banks that our tax dollars bailed out will no longer lend money to those that helped them stay afloat...and therefore no money to loan.no big purchases to be made.....
They surely will tack on 10 to 15 more points on your credit card though for all that frivilous spending,once youve frivilously spent the batch of it.....

i agree 100%. i was not saying everyone just lots. but i agree with your statement. and the same result equals no bike sales.

 

[HDLARRY]

I'm sorry but having knowledge of new investors being sought would stop me dead in my tracks of buying a new or used Dog.

This is not a good story for any of us but I sincerely hope it works out and the company gets saved.

 

[stlmikie]

You sould still buy 03 and earlier.

 

[Big Mike]

If it ends up with investment/venture capitalists as part or full owners Sheldon's long term vision will be out the window. It will be all about maximizing profit with short term decision making being the mantra and how soon can the company be flipped. Not a very positive turn of events for BD.

This is exactly right!!! Unfortunately, I work for such a company. The original company treated us extremely well and everybody in the industry wanted to come to work for us. With the new company, they have literally sucked the life blood out. People are leaving just as soon as an opportunity comes their way. We are no longer proud to work for the company because they could care less about us or anything else except raising us for slaughter. They are not committed to the industry, only the bottom line. They are leaches and contribute nothing.

If this happens to BDM we can expect short cuts and loss of the quality BDM has become known for. I agree, itis indeed as sad turn of events. I think I would rather see it go down with it's head up (Quality intact) than see it's reputation drug through the mud.

If BDM develops a crappy reputation, what do you think will happen to the value of our machines?:bang:

 

[Nomad2day]

Anyway, Sheldon hasn't owned Coleman in 15-20 yrs now.

For more than three-quarters of a century, Coleman had worked hard to establish and maintain a reputation for high quality products sold at reasonable prices. This reputation paid off handsomely during the 1980s as both profits and sales increased steadily. According to Fortune, however, the Coleman family, who owned 25 percent of the company's stock, began withdrawing profits rather than reinvesting for product development and market expansion. Sheldon Coleman, Jr., replaced his father as chairman of the board in 1988, and only one year later he decided to privatize the company in order to reap an even larger profit--the pension plan of the company was overloaded by approximately $30 million.


The new chairman floated an offer of $64 per share for the company's stock. The bid proved too low, and ill-timed as well. Instead, New York financier Ronald Perelman entered the scene and purchased Coleman for $545 million, or $74 per share, in a 1989 leveraged buyout through his company MacAndrews & Forbes Holdings Inc.


Chairman Offers to Buy Coleman - NYTimes.com

Chairman Offers to Buy Coleman
By ROBERT J. COLE
Published: February 15, 1989
Sign in to Recommend
Twitter
Sign In to E-Mail

Print


Reprints

Share
Close
LinkedinDiggFacebookMixxMySpaceYahoo! BuzzPermalink..The chairman of the Coleman Company, known throughout the world for its lanterns and other camping equipment, offered yesterday to buy the company for $450 million.

The Coleman Company said that Sheldon C. Coleman Jr., 36 years old, had offered $64 a share. He was elected chairman last fall after the death of his father, also named Sheldon.

Wall Street seemed delighted with the proposal but convinced that the price of the company, based in Wichita, Kan., would go far higher before any deal was completed. Coleman's stock rose $21 yesterday, to $70.125, or $6.125 more than the offer, in heavy trading on the New York Stock Exchange. It was the sixth-most-active issue on the Big Board, with more than 1.8 million shares traded.

At the current price, the company's 7.05 million shares are worth almost $500 million. But yesterday's trading seemed to suggest that a final offer might reach $74 or $75 a share.

This would raise the eventual value of a deal to as much as $530 million, particularly if a competing bidder joined in.

In a report last June, John D. Campbell, who covers Coleman for Goldman, Sachs & Company, called Coleman a ''very attractive investment.'' He said the company's managers, under its new chairman, were working on a long-term strategy to weed out unprofitable lines, add new products that appeal to families and grow through acquisition.

Coleman products have long been the stuff of history and legend. During World War II, the war correspondent Ernie Pyle called the Jeep and the Coleman G.I. stove the two most important pieces of noncombat equipment ever developed. Today, Coleman's wide product line ranges from personal coolers and jugs, camp stoves, sleeping bags and heaters to hot tubs, fishing boats, air guns, portable generators and air-conditioners.

Coleman said its sales jumped nearly 10 percent last year, to $657.9 million, from $598.5 million in 1987, while profits soared 28 percent, to a record $24.5 million, compared with $19.2 million a year earlier.

Value Line, the investment survey, said in its current report, prepared in December, that Coleman's prospects for 1989 depended largely on the economy. Value Line said that it expected a mild recession this year but that it did not expect any drastic downturn for the company, citing Coleman's diversified line of products and the large amount of low-priced items it offers for cost-conscious consumers. Further Announcement Today

In a brief announcement of the offer, the company said its board would meet on what it called ''a possible proposal'' from Mr. Coleman to take the company private in a leveraged buyout. It said a further announcement would be made today.

The company added that it had been advised that Mr. Coleman's offer amounted to $64 a share - $54 in cash and preferred stock valued at $10. Charles McIlwaine, a spokesman for Coleman, declined to say whether the company had been approached by other parties that might be interested in acquiring it.

According to a short official history of the Coleman Company in its 1987 annual report, William C. Coleman, the company's founder, entered the lantern business almost by accident. On a rainy night in 1899, while working his way through law school by selling typewriters, Mr. Coleman spotted a bright light beaming in a drugstore window in the mining town of Brockton, Ala.

He traced the lamp, called ''The Efficient,'' to its distributor in Memphis, arranged to sell the lamp in the Oklahoma Territory and by 1901 had acquired the patent and production rights. To demonstrate how bright a light it could produce, in 1905 he strung Coleman lamps from tall poles on both sides of the field at Fairmount College - now Wichita State University. That, according to Coleman historians, provided the light for the first night football game.

In 1909, the company produced the Coleman table lamp, a portable device fueled by gasoline. ''W. C. proved Coleman lamps could take it,'' the company said, ''by demonstrating that a child could fall down a flight of stairs carrying one without causing a fire or explosion.''

The famous Coleman lantern followed in 1914 and played a significant role in World War I. By last year, Coleman said, it had sold more than 40 million of them. Then came the camp stove, the cooking range, the radiant heater, the floor furnace, air-conditioners and fiberglass boats.

Mr. Coleman, grandson of the founder and sometimes called Dewy, also plays the electric guitar in a rock-and-roll band called ''Dewy and the Big Dogs.'' He owns a recording business in downtown Wichita called the Big Dog Studio. Last fall, he told Fortune magazine that the band was ''just a way to pursue something I've always loved.'' The company spokesman said yesterday that ''he doesn't spend a lot of time with it anymore.''

photo of a Coleman latern; graph of Coleman's '88 gross sales (Source: Company reports) (pg. D1); graph of Coleman's weekly stock close from 1/88 to 2/14/89 (Source: Knight-Ridder Tradecenter) (pg. D13)