Suhr Is Being Bought Out!!!

t0aj15 said:
I find the $11 million price tag surprising. Just yesterday I read a story in our local small town paper about a company (Garden Fresh Gourmet) that started here the same year as Suhr (1997) making Salsa and Chips which just sold to Campbell soup for $231 million. I guess there's way more money in Salsa then there is in guitars.
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Theres a lot more people eating Chips and Salsa then there is buying high end super strats.
 
willowdale said:
This is John's response 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!
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It will be interesting to see if it stays that way, not saying it's a false statement it's just that things always seem to change after the deal is done. No one spends $11 Million and says I love what you're doing don't change a thing.
 
The only other companies listed on the AVLP site seem to be related to electronic cigarettes. Seems like an odd mix but maybe there are some synergies here. Imagine the cost savings if all the employees of Suhr switch from regular smokes to e-cigs. Plus, they can just vape while they work so you get all that smoke break time back too. Win-Win-Win!
 
Chris Hurley said:
The only other companies listed on the AVLP site seem to be related to electronic cigarettes. Seems like an odd mix but maybe there are some synergies here. Imagine the cost savings if all the employees of Suhr switch from regular smokes to e-cigs. Plus, they can just vape while they work so you get all that smoke break time back too. Win-Win-Win!
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CA treats e-cigs like regular cigarettes. You can't vape indoors here. Or maybe it's just San Francisco...
 
I was booked to play at the president and vice president of Utz snack's mansion in Hanover, PA a number of times. And I can say, without any hesitation, that that is completely true. lol

Sixstring said:
Theres a lot more people eating Chips and Salsa then there is buying high end super strats.
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It may not kill the quality, though I don't know much about this Avalanche Technologies.

I own a Tone King amp and, even after Tone King became part of the Premier Builder's Guild, the quality and service is still top notch.
 
To me, there's two main reason for a company to get bought out. Either the owner want out for some reason. Or because the owner wants the stability of having the backing of a larger company. Digging a bit deeper, Suhr was sold for stock and cash, meaning that John and Steve Smith will get a bit of cash and own a part of the parent company. Avalanche Technologies is a "holding company that specializes in consumer products". I don't think they know lots about building high end guitars. It's absolutely feasible here that Suhr wanted to grow the company and build a new factory for instance, which would require a big investment with big loans and so on. And the easiest way to do this would be with the backing of a larger parent company. http://finance.yahoo.com/news/avalanche-intl-agrees-buy-js-123450613.html
 
from what ive read john is still with the company, sometimes this can be a good things some times not (corporate buy outs)

However my goto guitar these days is a suhr, and wouldn't mind another one, we'll just have to see how it plays out i guess
 
While I'm sure John believes, at this moment, everything will remain status quo, that is rarely the long term reality. They use to be able to do what they wanted, when they wanted and only had themselves to answer to; that is over. Their minuscule ownership in the larger company provides no leverage.

Look at Hamer's history. Paul wanted out, Jol couldn't/wouldn't buy him out. They sold to Kaman, Jol staying on in various capacities over the years. Kaman moved them from Illinois to Connecticut, cut production by 90%, then sold it to Fender, who eventually shut it down. At the time of the sale it was all about "everything is will stay the same". In their case they were many market forces that changed, the company was unable adapt effectively.
 
Ordered a sunburst Classic back in March. Just got in under the wire.

I agree with Luke. Once a small company gets bought out by a big one, the guys running the big one start to tinker. They just can't help themselves. I have heard the "things will stay the same" mantra many times. Still waiting to see it happen. What a shame. I love Suhr guitars. I'd like to be surprised, but I think the quality will suffer in the long haul.
 
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