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Author Topic: Brunswick is getting out of the Bowling business  (Read 21986 times)

milorafferty

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Brunswick is getting out of the Bowling business
« on: July 17, 2014, 04:40:45 PM »
"If guns kill people, do pencils misspell words?"

"If you don't stand for our flag, then don't expect me to give a damn about your feelings."

 

Track_Fanatic

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Re: Brunswick is getting out of the Bowling business
« Reply #1 on: July 17, 2014, 05:16:17 PM »
Here is a million dollar question that I'd like to find out the answer to.  For those who were lucky enough that have the covenant Lifetime Open Bowling from Brunswick, will it still be honored with the change?

northface28

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Re: Brunswick is getting out of the Bowling business
« Reply #2 on: July 17, 2014, 05:17:08 PM »
The irony, a few people came from the local AMF to the local Brunswick and they were all notified that they will be relieved of their jobs. They can re-apply if they wish.
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northface28

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Re: Brunswick is getting out of the Bowling business
« Reply #3 on: July 17, 2014, 05:19:57 PM »
Where is BrunsNick when you need him?
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milorafferty

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Re: Brunswick is getting out of the Bowling business
« Reply #4 on: July 17, 2014, 05:33:31 PM »

Received the following in an email from Luby Publishing.


Ignore the HTML tags, it was copy paste.





#820 - July 17, 2014

A Business-to-Business Report
[/size][/font][/font][/color]

[/size][/font]Special breaking news from your friends at Bowlers Journal International.

Also check us out on the web at BowlersJournal.com. The Cyber Report is compiled by Jim Dressel. Please send news, tips or comments to:
jrd33@earthlink.net. To ensure uninterrupted delivery of these business reports, add jrd33@earthlink.net to your "safe list."
Brunswick to Sell Retail Bowling Business to Bowlmor AMF
 
LAKE FOREST, Ill., July 17 - Brunswick Corporation today announced it has agreed to sell its Retail Bowling business to Bowlmor AMF for $270 million, contingent upon customary closing procedures. Brunswick anticipates completing this transaction in approximately 90 days.
 
In connection with its decision to sell its bowling centers, Brunswick also announced its intention to divest its Bowling Products business. Brunswick is targeting to complete that sales process by the end of 2014, during which time the company will continue to operate the business. Brunswick will retain its legacy and namesake Billiards business.
 
Brunswick stated that it had found the Bowlmor AMF offer, which was unsolicited, to be a unique opportunity to transfer ownership of this business at an attractive valuation. "Brunswick Retail Bowling has long been a solid contributor to our Company, and last year had approximately $187 million in sales. After careful consideration, however, we concluded that this transaction is in the best interests of our shareholders and the Retail Bowling business," explained Brunswick Chairman and CEO Dustan E. McCoy.
 
"The bowling industry has been evolving as center counts decline and the customer mix shifts from predominately league bowling to casual bowlers seeking an entertainment-oriented experience. For Brunswick to drive growth in this business, it would take continual development of new entertainment concepts and significant additional investment to implement these new concepts at new properties or to convert existing centers. We believe directing investments into select portions of our core Marine operations as well as our Fitness business provide better opportunities for greater returns. In 2013, the Marine and Fitness businesses together accounted for 92 percent of Brunswick's net revenues," McCoy continued.
 
"Conversely, Bowlmor AMF's primary strategic objective is to invest in and grow its retail bowling business, which includes proven entertainment concepts in certain of its centers. With the addition of the Brunswick locations, Bowlmor AMF will increase its center count to 343 in North America, and, will add some of the most dedicated and talented people in retail bowling.
 
"Finally, due to our exit from the Retail Bowling business, combined with similar market dynamics, we have retained Lazard to seek a suitable buyer for our Bowling Products business," McCoy concluded.
 
Brunswick stated its current plan assumes that the eventual purchaser will retain both the manufacturing operations and the talented workforce of Bowling Products. During the sale process, Bowling Products will maintain ongoing operations and conduct business-as-usual, while keeping its employees, distribution network and customer base informed of the sale's progress.
 
As a result of the Company's announced sale of its Retail Bowling business and its intention to sell its Bowling Products business, beginning with the third quarter of 2014, Brunswick will report the results of these businesses, which were previously reported in the Bowling & Billiards segment, as discontinued operations. In addition, the results of the Billiards business will be included in the Company's Fitness segment.
 
As a result of these divestitures and associated discontinued operations treatment, Brunswick estimates the dilution to EPS from continuing operations, on both a GAAP and as adjusted basis, to be approximately $0.20 per diluted share for the full-year 2014. Further, Brunswick estimates that for 2014, the free cash flow from continuing operations will be lower by $35 million to $40 million.
 
The Company continues to believe it can achieve the long-term financial targets included in its three-year plan. Therefore, the Company maintains its original base case target of $3.00 to $3.40 earnings per diluted share in 2016.
 
"Going forward, we anticipate net proceeds from both these divestitures and associated actions, which reflect our current estimates for
taxes and liabilities to be paid, to approximate $270 million to $290 million," McCoy explained. "We believe our best opportunity to increase shareholder value is to use these net proceeds to strengthen our Marine and Fitness segments. Further, we plan to consider the following: increasing the quarterly dividend, accelerating contributions to the Company's underfunded pension plans as part of our de-risking strategy, and establishing a share repurchase program.
 
"Our highest priority will be to target investment opportunities in segments such as marine parts and accessories along with those in Fitness. Brunswick already has completed one such investment by acquiring Whale, a leading marine parts and accessories provider, and we anticipate additional acquisition activity in this area."
« Last Edit: July 17, 2014, 05:35:24 PM by milorafferty »
"If guns kill people, do pencils misspell words?"

"If you don't stand for our flag, then don't expect me to give a damn about your feelings."

milorafferty

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Re: Brunswick is getting out of the Bowling business
« Reply #5 on: July 17, 2014, 05:38:16 PM »
If Bowlmor is able to buy out Brunswick, it seems their bowling centers(and way of doing business) must be pretty darn successful.

That, or they have one hell of a big line of credit.
"If guns kill people, do pencils misspell words?"

"If you don't stand for our flag, then don't expect me to give a damn about your feelings."

Steven

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Re: Brunswick is getting out of the Bowling business
« Reply #6 on: July 17, 2014, 05:52:16 PM »

For those who want some insight to AMF/Bowlmor's CEO Tom Shannon, here is the very short version:
 

And for those with a real attention span, the long version:



No matter how you slice it, the conclusion isn't pretty for Brunswick bowling centers.



« Last Edit: July 17, 2014, 10:50:56 PM by Steven »

bradl

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Re: Brunswick is getting out of the Bowling business
« Reply #7 on: July 17, 2014, 06:18:57 PM »

For those who want some insight to AMF/Bowlmor's CEO Tom Shannon, here is the very short version:
 

And for those with a real attention span, the long version:


Absolute idiot, this guy. complete, total idiot.

And in the 2nd clip, at the 3:00 mark, they are talking about the bowling alley in NYC.

I wonder why they totally omitted the fact that they closed their oldest bowling alley, also in NYC, after 76 years of being open.

this guy has no respect for the history of the sport, let alone those who put countless hours of their lives into a sport they love.

BL.

Ratt_bowling

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Re: Brunswick is getting out of the Bowling business
« Reply #8 on: July 17, 2014, 06:20:27 PM »
Seems like a good opportunity for Nike to get into the bowling equipment business.

milorafferty

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Re: Brunswick is getting out of the Bowling business
« Reply #9 on: July 17, 2014, 06:22:57 PM »
Seems like a good opportunity for Nike to get into the bowling equipment business.

I've always thought that as well. Shoes and other equipment for millions of bowlers. Seems like there should be a profit in there somewhere.
"If guns kill people, do pencils misspell words?"

"If you don't stand for our flag, then don't expect me to give a damn about your feelings."

bradl

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Re: Brunswick is getting out of the Bowling business
« Reply #10 on: July 17, 2014, 06:33:49 PM »

Now that I think about it, this may prove Bowlmor's true mettle with the sport in this country.

Last year's USBC Masters was at Carolier in N. Brunswick last year. With that pretty much being the 'home' to Bohn and Petraglia, and as big as that tournament is, this change in ownership of the house will now have the PBA's eyes on it. If Bowlmor screws this up, they are going to lose a good chunk of their repeat customers, which are the league bowlers.

Speaking of Bohn, Petraglia, etc., I wonder how this will affect their Brunswick's regional and professional staffers? This may not bode well for them.

BL.

kidlost2000

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Re: Brunswick is getting out of the Bowling business
« Reply #11 on: July 17, 2014, 07:22:03 PM »
I am a huge fan of Brunswick equipment. I've primarily used it since I started bowling as a teen in 1996.

It is a huge disappointment for sure. I will be looking at something else when they are finally done and under the AMF umbrella.

This also says something else to me about bowling. It is changing, has been changing for some time, and likely not for the better. There are more companies then the market can likely continue to sustain. The number of league bowlers is continuing a steady decline. Bowling centers will still continue closing. It is interesting and disappointing.
you can't  add a physics term to a bowling term and expect it to mean something.

itsallaboutme

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Re: Brunswick is getting out of the Bowling business
« Reply #12 on: July 17, 2014, 07:23:55 PM »
Consumer products is so good Etonic was in pretty deep and got out.  Nike was in about 25 years ago and got out.  The last place a company like Nike is going to jump into is a dying game like bowling.

Tom Shannon must be able to sell ice to Eskimos if he got the investors to put up money for more bowling centers.

nocarey

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Re: Brunswick is getting out of the Bowling business
« Reply #13 on: July 17, 2014, 07:46:28 PM »
 :o shocking

suhoney24

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Re: Brunswick is getting out of the Bowling business
« Reply #14 on: July 17, 2014, 08:35:43 PM »
so does this mean brunswick is done period? no more balls being made or products?