Info Aqualung Financial Troubles

[USdiver1]

Certainly...."Talent" but honestly, I only work here and live in Broward because Dade county is atrocious.

I always tell people, "Miami is neat to visit...awful to live."

Been that way for at least the last 60 years too. Dade had awful schools, not a fit place to raise a family.

 

[scubadada]

PE firms usually don't step in unless a company is already facing financial woes. Before Barings acquired it, Aqualung's debt was astronomical and not sustainable.

Air Liquide sold Aqua Lung to the PE firm, Montagu, in 2016. Air Liquide focused on the core business of gas/services and acquired Airgas.

Montagu sold Aqua Lung to Barings last year, completed in December

Time will tell

 

[Cert1967]

Vail Resorts - MTN

Investors have done OK

And

VR has revolutionized the ski industry in the USA - Epic Pass, acquisitions

The only large corporate ski co on the world

 

[-JD-]

yeah no, it isn't that simple

I'm sure. I was probably half-serious. Sorry, I forgot the [tic] [/tic] tags.

 

[runsongas]

@scubadada @Outbound my understanding is the business was sustainable before the PE firm (Montagu) bought Aqualung and loaded it up with debt in order to buy it. Air Liquide needed to raise cash for the Airgas acquisition is why it was sold. Barings was the bank/debt holder which then took it over.

 

[scp]

I guess the cat's out the bag now. (Secret is no longer) so can we continue.

So with another amusing note go back to my posts 16 17 and 18 on page 2 of this thread and we can continue with the move theme.
Aqualung USA Incorporated did indeed register on 22nd April 2024 as a foreign profit corporation with Aqualungs current mover and shaker CEO Michel Abaza of Alize Capital.

Having got rid of the existing and experienced staff in CA the new man at the top is actively looking for new staff in Doral Florida.

So for your continued pleasure and delight I give you Aqualung USA new theme park location of 8880 NW 20th Street Dorel Flex Park 33172
A delightful 7000 square foot office space 10 minutes away from Americas finest healthy eating establishments of Wendy's Mc Donalds and a Starbucks and for those with a diving interest theme your old favourite a Red Lobster. Available June 24 on a 3 to 5 year lease this 7000 square foot office space is on at $19.95 sq/ft year rent

Note the big chair for the boss and the little chairs for the staff. So quaint so American.
The new tenant needs consider that the plants may need a little water.


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Nooo lol, that really isn't the case. Is it?

 

[LandonL]

Montagu sold Aqua Lung to Barings last year, completed in December

Lets try an analogy:

You have a $3 million home.
You have continued to borrow money against it until you now owe $15 million on a loan attached to it.
Your income is $350,000/yr (before taxes).
Your interest only payments are $1,000,000/yr.

What do you call it when the bank 'acquires' your home?

 

[lowwall]

Air Liquide sold Aqua Lung to the PE firm, Montagu, in 2016. Air Liquide focused on the core business of gas/services and acquired Airgas.

Montagu sold Aqua Lung to Barings last year, completed in December

Time will tell

Montagu did the unfortunately all too common PE thing of financing the acquisition with debt, a fair chunk of which they kept in the form of acquisition "fees". They also cashed out by selling a couple of the easy to sell pieces such as $20 million of AL's real estate holdings.

When AL proved unable to service the massive debt it was saddled with and no more suckers willing to loan it money or refinance the existing loans, Montagu simply handed possession over Barings which was AL's largest debt holder.

So Barings essentially foreclosed on AL rather than purchasing it. And like any financial institution that forecloses on something, they have no interest in holding onto it. All they want to do is limit their losses by selling off the pieces as fast as they can find at least semi-reasonable offers.

 

[scubadada]

If you read about the goals and objectives of the Montagu acquisition, they read similarly to the acquisition by Barings, hard to believe either

The acquisition has opened a new chapter in Aqua Lung’s history, providing it with the financial resources to accelerate its transformation and strengthen its position in its core markets, which include Dive and Military.

 

[BoltSnap]

Lets try an analogy:

You have a $3 million home.
You have continued to borrow money against it until you now owe $15 million on a loan attached to it.
Your income is $350,000/yr (before taxes).
Your interest only payments are $1,000,000/yr.

What do you call it when the bank 'acquires' your home?

Montagu did the unfortunately all too common PE thing of financing the acquisition with debt, a fair chunk of which they kept in the form of acquisition "fees". They also cashed out by selling a couple of the easy to sell pieces such as $20 million of AL's real estate holdings.

When AL proved unable to service the massive debt it was saddled with and no more suckers willing to loan it money or refinance the existing loans, Montagu simply handed possession over Barings which was AL's largest debt holder.

So Barings essentially foreclosed on AL rather than purchasing it. And like any financial institution that forecloses on something, they have no interest in holding onto it. All they want to do is limit their losses by selling off the pieces as fast as they can find at least semi-reasonable offers.

Wouldn't this be considered fraud or some sort of a crime?