Weber and Blackstone to merge


 
When I was younger and just starting out, married and a homeowner, a Weber grill was something special.

I remember the advertising around 1993 when I bought the Genesis 1000- “buy your last grill first”

Since I still own and use that grill regularly, I would say that was truth in advertising.

I think of George Stephen as a man who built a company that he was proud of.

Proud of the products he sold, and proud of his employees who he considered as part of his family.

I would hope that the owner of Blackstone is the same type of person.

It would be good to see Weber get back some of it’s mojo from when George Stephen was calling the shots.
 
We've been noticing since Monday.......the other thread.

T

Thread 'Weber and Blackstone to merge'

WEBER AND BLACKSTONE PRODUCTS TO COMBINE

WEBER AND BLACKSTONE PRODUCTS TO COMBINE
www.weber.com www.weber.com

Just announced today, Weber and Blackstone will become one company. Part of me wants to go out and snap up a traveler, a griddle, and some of the other things I’ve been thinking about before the merger. I’m worried that the legendary Weber quality will suffer.
  • Wow
  • Sad

I am not really a Blackstone fan, I used my folks Blackstone first then bought the Slate.....I like the Slate more for a bunch of reasons.....
It did cost more but it is so much more user friendly.
 
I haven't ventured into the just discussion pages, my apologies for a 'repost' I am just shocked I haven't seen anything about it in here yet...
 
Blackstone tried to go public a couple years back via a SPAC merger (that never happened). So they were publicly releasing their financials for a while. Which Weber also did until it went back private

Blackstone is smaller than Weber (at least a couple years back) but growing fast and much more profitable than Weber. Sort of what I expected -- newer market segment (griddles) with a lot of room to grow. Versus a more mature business (charcoal and gas grills).

Blackstone Full Year 2022 Guidance
For its fiscal year ending December 31, 2022, Blackstone's outlook for the following financial metrics remains unchanged vs. prior outlook:
  • Net Revenue of $608 million, representing estimated 26% growth compared to 2021.
  • Gross Profit of $132 million, representing estimated 35% growth compared to 2021.
  • Adjusted EBITDA of $81 million, representing estimated 15% growth compared to 2021.

Weber for the fiscal year ended 9/30/2022:
•Fiscal year 2022 net sales decreased 20%, to $1,586 million.
•Net loss decreased to $330 million, or (20.8)% of net sales.
•Adjusted EBITDA decreased 100%, to a loss of $1 million.
 
I am holding out hope that maybe some new blood could help reinvigorate Weber. Maybe some fresh ideas for both sides from what once was the competition.

I just hope they both are thriving when the dust settles from the first 2-3 year of this 'combination' of the 2 big dogs of the outdoor cooking world!
 
I had not heard about this either. It is hard not to think that it shows that Weber has been getting on shaky ground. The Blackstone CEO is taking over. One thing that is good, I think, is that Blackstone has made huge inroads in store placement of its products at places like Lowes and Home Depot, while Weber - especially at Lowes - has been steadily losing floor space. The SmokeFire launch debacle was possibly the last straw for Lowes.

How this will translate into joint marketing and product development in the future remains to be seen.
 
I kind of wonder if the gas grills will stay as Weber or if they’ll make Weber synonymous with only charcoal? I think it would be kind of crazy to do, but could see the Blackstone trend growing into Blackstone branded gas grills.
 
Jim C in Denver said:
Blackstone tried to go public a couple years back via a SPAC merger (that never happened). So they were publicly releasing their financials for a while. Which Weber also did until it went back private

Blackstone is smaller than Weber (at least a couple years back) but growing fast and much more profitable than Weber. Sort of what I expected -- newer market segment (griddles) with a lot of room to grow. Versus a more mature business (charcoal and gas grills).

Blackstone Full Year 2022 Guidance
For its fiscal year ending December 31, 2022, Blackstone's outlook for the following financial metrics remains unchanged vs. prior outlook:
  • Net Revenue of $608 million, representing estimated 26% growth compared to 2021.
  • Gross Profit of $132 million, representing estimated 35% growth compared to 2021.
  • Adjusted EBITDA of $81 million, representing estimated 15% growth compared to 2021.

Weber for the fiscal year ended 9/30/2022:
•Fiscal year 2022 net sales decreased 20%, to $1,586 million.
•Net loss decreased to $330 million, or (20.8)% of net sales.
•Adjusted EBITDA decreased 100%, to a loss of $1 million.
Click to expand...
one would hope that Weber turned around their loss to gains. they've had pricing stability in the market which lends me to believe that stable prices equals stable sales. and they channel cleared the SF and now have the SW.

i'm thinking this is a good move for both companies. good synergies. hopefully the innovate and grow markets.
 
I don't think this merge ( I call it take over.....it's similar to what is happening at my work ) will affect me in any way....
It is interesting to learn about but in the end I think the consumer will end up happy.
If I wear out my Weber and need a new one SNS is always an option......
 
Man, I was really thinking Weber had upped their game with the new summit line and the slate griddles. I thought the slate was substantially nicer than Blackstone, but I'm not really impressed with Blackstone in general. Hopefully things go well for everyone!
 
Jim C in Denver said:
Blackstone is the market leader in griddles.

So presumably Blackstone bought Weber for its products and brand in segments other than griddles. Meaning Weber charcoal and Weber gas grills. Not to have Weber Slates compete with or replace Blackstone griddles.
Click to expand...

Not to mention Weber griddles are about $100 more than comparable Blackstones.

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IDK if those are "comparable". One is a 3 burner and another is a 2 burner. From what I've seen of Blackstone and my little exposure to Weber I think they're very comparable in pricing. That being said I also think the Blackstone's look a little more well made and polished. But that's me. Frankly I don't think I'd buy either one (if I ever wanted a griddle). Just not something that catches my fancy. My guess is Weber has something BS needs and BS has something Weber needs. What? Time will tell
 
I just worry about the quality of upcoming products. Weber has built its reputation on its produces just work, those kettles sitting in backyards all across America for decades. I've seen too many mergers where quality starts to suffer for the sake of profitability. I've seen too many instances where once it's no longer a family company, the production moves and things go downhill.

I'm not suggesting that's going to happen. Blackstone is a reputable enough company. However there's that nagging worry in the back of my mind.
 
Bill M said:
I just worry about the quality of upcoming products. Weber has built its reputation on its produces just work, those kettles sitting in backyards all across America for decades. I've seen too many mergers where quality starts to suffer for the sake of profitability. I've seen too many instances where once it's no longer a family company, the production moves and things go downhill.

I'm not suggesting that's going to happen. Blackstone is a reputable enough company. However there's that nagging worry in the back of my mind.
Click to expand...
Well just look how the quality of the gas grills has tanked. Especially since 2011. So has the innovation they had. There is no longer anything to differentiate them from anything else until you get to the newest Summit line.
 
Cody Bratton said:
I am thinking the rust resistant griddle top will be put into service on the Blackstones. Looking at them in store, the Slate's griddle top just looks, and feels WAY nicer, better finished than the Blackstone top.
Click to expand...
100% this. The new slate is a good looking griddle and Weber did a nice job with it.
 
I know this is just a single anecdote, but I will say....
It's quite often that I sell a Weber to a customer and they say something to the effect of "Yea, I bought a Blackstone but I just don't like it / it's just not the same as grilling on a Weber / the Blackstone rusted out so quickly".

The last point there is obviously due to lack of owner maintenance, but does underscore the fact that it REQUIRES constant maintenance, while a Weber could be cleaned once per season or year and get away with it.

From a business standpoint I'm not surprised. Blackstone does have "hype". But from a longevity standpoint, I think Weber wins this competition outright without needed to become a combined company.

Also just in my opinion, if this was something more like "Weber buys Blackstone", it would make more sense to me in order for them to absorb competition and essentially drive it into obsolescence (like what Apple did with Beats by Dre).
 
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