Huish Outdoors acquires LIQUIVISION

[Diver0001]

Without getting into it too much, It's been several years since Huish Outdoors purchased Atomic (including the Cobalt computer), and it continues to be a positive experience for all concerned. They aren't small- the business they came from is probably larger than the entire diving equipment business, and it had technical aspects. It's rather the diving business that is tiny, and many companies in it suffer from a lack of capital, which limits their ability to innovate as much as they would like. Sometimes people with capital and business expertise get involved in businesses because they care about the business area (like being avid divers) and see an opportunity. I think that's the case here.

Ron

You know, Ron, I really hope you're right, but I have reservations.

Reading the owner's bio didn't inspire me very much because he's a "big picture" manager who believes, according to his own blog, that he can run a business that he doesn't really understand by delegating the understanding what that business is doing to other people. There are lots of executives like this but in this particular case, the "other people" are Mark Fredrickson, who is (as best I can coax out of Google) a chemist who came from the washing detergent business. So basically, the owner has brought his star pupil from the washing detergent business in to run the diving business.

Which one of these two guys are we supposed to believe knows anything about manufacturing diving computers?

Yes, this little side line may be connected by association to a bigger concern but their revenue is 6 or 7 mil a year. I've run projects bigger than that and believe me with 7 mil a year in revenue, you're not doing much R&D.

And that's the real rub I see here. Unless R&D is getting the funding it needs, then these (presently) A-level players like Atomics and Liquivision are going to get further and further behind the curve until they're making B-grade products or eventually just giving up and re-stamping other people's products.

To draw a parallel, can you say Genesis? According to their own mission statement they claim to have been "founded specifically to design and produce only the highest quality dive products". When was the last time they actually did that?. I can easily see Huish going the same way, little by little re-stamping instead of inventing. That's the big risk I see with small companies that want to play in the big leagues. I'm sure Genesis has a bigger R&D budget than Huish could possibly ante-up. How long before that catches up with them?

I REALLY hope I'm wrong because Huish bought some good brands and it would be awful to see them die a slow death. Buying brands does not automatically make a business successful. Maybe they'll make a ground breaking washing detergent that will extend the life of your BCD ..... that much I could believe.

R..

 

[drrich2]

You have to buy the deluxe and strip half of it off to make it a good BC.

Minor tangent - what do you strip off?

Richard.

 

[Jim Lapenta]

Weight system, shoulder pads, back pad, plastic d rings, chest strap, and replace the quick release straps with one piece webbing.
So disgusted by what they did I'm seriously considering selling mine with the 35 lb stiletto wing I have on it.

---------- Post added April 3rd, 2014 at 07:27 PM ----------

Basic Express Tech that is. I would never have gotten one if I had to get the deluxe version.

 

[RonR]

You know, Ron, I really hope you're right, but I have reservations.
<snip>
... but their revenue is 6 or 7 mil a year. I've run projects bigger than that and believe me with 7 mil a year in revenue, you're not doing much R&D.

And that's the real rub I see here. Unless R&D is getting the funding it needs, then these (presently) A-level players like Atomics and Liquivision are going to get further and further behind the curve until they're making B-grade products or eventually just giving up and re-stamping other people's products.
<snip>

The diving equipment market is tiny- most divers don't have any idea how small it is. Very, very few companies would be over that "6 or 7 mil". You're right that this does not leave a lot of slack for R&D, and that's a big reason why it tends to lag in diving. It's also why a company like Huish Outdoors that has a lot of capital available can make a big difference.


What happened at Atomic is that the creative founders are still running the company, but now have more resources available to develop new products. I would expect the same will be true with Liquivision. It's a good thing.

Ron

 

[Scared Silly]

My only experience with this is that when Huish took over Zeagle they killed the best BC for new divers and independent instructors to obtain at a reasonable price. You can still get the Express Tech but not the basic one. You have to buy the deluxe and strip half of it off to make it a good BC. That was a colossally stupid move. I used to recommend that BC over anything but a BPW. Not any more.

Jim, I think that was purely a coincident. Somehow I just do not see Huish coming in and saying to kill a product. I would bet the decision was made within Zeagle. What folks should be looking at in terms of Huish buying these various companies is customer service, new products (as Ron said they now have working capital), etc.. For instance, when I call Atomic customer service I want to speak to someone at Atomics - I do not want a message to taken by someone at central call center and to have someone call me back.

 

[Nuribromanski]

For instance, when I call Atomic customer service I want to speak to someone at Atomics - I do not want a message to taken by someone at central call center and to have someone call me back.

is that happening???

 

[buddhasummer]

is that happening???

I thinks it's a fear.

 

[scubafanatic]

Saves Atomic from trying to figure out how to make a wrist mount "Cobalt" dive computer. Just have the boys from up north do it.

The wrist-mount Cobalt may have just been strangled in the crib, relabel the Liquivision 'Kaon' as the 'new' Kobalt II.......hope I'm wrong on that.

 

[Scared Silly]

For instance, when I call Atomic customer service I want to speak to someone at Atomics - I do not want a message to taken by someone at central call center and to have someone call me back.

is that happening???

Yes, I called the Atomic number and got a Huish Outdoors person. I requested someone at Atomic's warranty repair. They took my information and said they would forward my contact info on to them. I was calling during regular hours (i.e. California time) and found it strange. Perhaps they knew nobody was in warranty and took my info directly (i.e. they did not try to transfer me). That said I had another way of contacting Atomic and was promptly called that afternoon and the problem was solved with a couple of weeks as items needed to be shipped.

 

[RonR]

Yes, I called the Atomic number and got a Huish Outdoors person. <snip>

That's how the phone gets answered now. As I understand it, if the lines are busy, your call will get redirected, and it may be to Salt Lake. But they are all on the same system and part of the same company.

---------- Post added April 4th, 2014 at 10:22 AM ----------

The wrist-mount Cobalt may have just been strangled in the crib, relabel the Liquivision 'Kaon' as the 'new' Kobalt II.......hope I'm wrong on that.

I think I can assure you that won't happen.