Info Aqualung Financial Troubles

[L13]

... and expect that they speak your language.

This. I think it applies everywhere.

 

[berndo]

yeah, not even close to accurate regards Apeks

What you you mean? I don't think there is a chance that Apeks goes away. I know it's not that big in the States but it's extremely popular in Europe and it's big market. The only other big reg brand over here is SP.
If AL goes into liquidation, Apeks is going to sell in no-time.

But I was thinking at a low enough price it would be a good fit for someone like Cressi who doesn't have a premium reputation or penetration in the US market.

I'm surprised Cressi is still around. I don't think they have any money to buy anything. AL proper doesn't really have great stuff or a great reputation. I don't think their dealer network or their name is worth all that much either. I would want Apeks but not AL.

 

[Eric Sedletzky]

Scuba is not a growing sport. If anything there is excess capacity, so there shouldn't be shortages that lead to predatory pricing.

And it's not a monopoly situation either. Scubapro and Mares will still compete for the primary market and they are parts of big conglomerates with solid financial situations. Maybe one of the second tier brands (in the US) like Tabata/TUSA, Cressi or XS Scuba will use the opportunity to move up. My money would be on XS Scuba since they already have a relationship with nearly every dive shop in the country.

I think you hit it on the head, “Scuba is not a growing sport”.
I remember before the internet put a lot of new companies on the map. There were some basics like Scubapro, Aqualung, Dacor, Sherwood, Oceanic, Mares… I remember when Atomic first started.
Then as time went by and more people buy from the internet, plus wave of interest in tech diving (thanks to the internet) a bunch of secondary companies pop up offering regs. Companies like Diverite, Oxycheq (for a while), Hog, Deep 6, DGX, and several others that had other products but decided to get a reg line also.
So now we have a glut of companies selling regs, how do you pick? There are so many and because of the internet they are all a click away instead of going to your LDS to see what they carry. And all this while scuba is shrinking.
I think we will be seeing a lot of companies dropping off in the next ten years. It will be interesting to see who’s still standing.

 

[OMyMyOHellYes]

None of the "first world" countries can plead innocent to the charge of arrogance.

Well, maybe the OTHER "first-world" countries, but Texas is different.

 

[lowwall]

AL had over $200 million in sales last year. Someone can make it work if it's not loaded up with debt again.

 

[berndo]

Someone can make it work if it's not loaded up with debt again.

They have way to many products that compete with each other for the same type of customer. Apeks xtx 200 and Legend next to each other is not something you want to stock as a store. Same with the 50 different jacket BCDs and suits they have. I'm surprised they didn't run into issue earlier.

 

[BoltSnap]

I wouldn't be surprised if Huish would go for PPS and buy them. Apeks perhaps Huish also.

 

[cerich]

What you you mean? I don't think there is a chance that Apeks goes away. I know it's not that big in the States but it's extremely popular in Europe and it's big market. The only other big reg brand over here is SP.
If AL goes into liquidation, Apeks is going to sell in no-time.

It's a global company and you need to look at all their channel distribution and business units profitability. If a given business unit does well in one geographic market but not so much otherwise and isn't making money, it's a liability not an asset. Then ask who would buy it and at what discount? I guess someone could try and expand it better internationally, but then even the economies of scale as part of a larger group are gone.
End of the day, it's money in the arena they are playing, not emotion arena that many smaller brands are in the dive industry.

 

[cerich]

ScubaPro and Mares won't be interested, unless Mares isn't getting what it wants from its XR line and thinks it could do better slotting Apeks in there. But I was thinking at a low enough price it would be a good fit for someone like Cressi who doesn't have a premium reputation or penetration in the US market.

But you obviously know far, far more about the industry than I do. Barings is going to try to sell it. What do you think will happen?

I think Barings is about to get indigestion most likely.

 

[Pressurehead]

Well, maybe the OTHER "first-world" countries, but Texas is different.

There is a guy here that moved from the USA [US Army officer veteran, did not like the way he was treated when he returned from Vietnam], who now lives like a hippie in Australia, when asked about Texas said "Texas, all hat and no cattle", sounds funny, but he is from Louisiana and talks funny anyway, Nice guy and well liked.

Off topic again, sorry, I will try to stay on topic.

AL, it will be a sad loss if it goes.