Weber and Blackstone to merge


 
I find the discussion about this way more interesting than “what toaster should I buy” type threads and this is not a critique of those threads and everyone who participates.

I am not that savvy about business and financial matters, but my sense is that Weber wasn’t merging from a position of strength.
 
John_NJ said:
I am not that savvy about business and financial matters, but my sense is that Weber wasn’t merging from a position of strength.
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It certainly seems that way given the fact that the standing CEO will be the Blackstone guy and the Weber guy goes off to other ventures. There is some product overlap with griddles and pellet grills. I'd bet that Weber's pellet venture might end and almost certainly their griddle venture.
 
I don't think Blackstone's pellet grill endeavors are as good as Weber's. My bet is the Searwood would stay on and maybe even have a Blackstone labeled version. Hard to say. Get the popcorn
 
Raymond Gatnor said:
Some companies... auto manufacturers in particular, pursue the use of their trademarked/copyrighted logos, emblems, publications, etc...stringently. Peoples YouTube channels and other content creators have been shut down and/or completely retooled after being forced to scrub all protected signs associated with their products.
So yes, this or any site can be effected. Some folks avatars alone could be subject to such actions.
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Mmmm, no. I am a member of a manufacturer specific car forum that’s been around a long time. The manufacturer cannot shut down any “fan” site, which TVWBB is, and more.

This forum we’re using is for enthusiasts. Nothing illegal about it an no trademark or copyright infringements.

And if Weber were to go after TVWBB, they’d basically annihilate a segment of their most loyal and knowledgeable users.

I’d bet, collectively, members here have helped countless other or new Weber owners elevate their bbq and grilling game.

I 100% disagree with your post.
 
John_NJ said:
I find the discussion about this way more interesting than “what toaster should I buy” type threads and this is not a critique of those threads and everyone who participates.

I am not that savvy about business and financial matters, but my sense is that Weber wasn’t merging from a position of strength.
Click to expand...
I disagree. Weber likely has substantially more revenue than Blackstone. There’s a synergy from reducing sales, marketing and a consolidated and more diverse distribution channel in one company versus running two.

While the businesses will be housed in different states and locations, the profits will come from a single stronger one company versus two companies that have redundant functions.
 
Brett-EDH said:
Mmmm, no. I am a member of a manufacturer specific car forum that’s been around a long time. The manufacturer cannot shut down any “fan” site, which TVWBB is, and more.

This forum we’re using is for enthusiasts. Nothing illegal about it an no trademark or copyright infringements.

And if Weber were to go after TVWBB, they’d basically annihilate a segment of their most loyal and knowledgeable users.

I’d bet, collectively, members here have helped countless other or new Weber owners elevate their bbq and grilling game.

I 100% disagree with your post.
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You can disagree all you like. However, this fellow was running a great channel for Lexus and Toyota owners... maintenance and service related. He used to have the Lexus logo on his coveralls as he is/was a Lexus Master technician. His channel abruptly disappeared and it was because of the very reasons I explained in my previous post. He then returned with blurred out and deleted portions and a new channel name.
He too was helping thousands of car owners just as this site helps outdoor cooking enthusiasts.


You may be correct in that such a move would be detrimental to the company because of brand loyalty, but to state it doesn't or hasn't occurred is simply erroneous.
 
Raymond Gatnor said:
You can disagree all you like. However, this fellow was running a great channel for Lexus and Toyota owners... maintenance and service related. He used to have the Lexus logo on his coveralls as he is/was a Lexus Master technician. His channel abruptly disappeared and it was because of the very reasons I explained in my previous post. He then returned with blurred out and deleted portions and a new channel name.
He too was helping thousands of car owners just as this site helps outdoor cooking enthusiasts.


You may be correct in that such a move would be detrimental to the company because of brand loyalty, but to state it doesn't or hasn't occurred is simply erroneous.
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He doesn’t have rights to copyrighted logos. So as I stated, TVWBB doesn’t use trademarks or copyright logos. My point remains.
 
“Blackstone” has huge name recognition in the marketplace like Kleenex and Q-Tips. That’s what Weber is tapping into. The present Weber CEO is retiring anyway, which is a change from the last few iterations of CEO firings—all justified. There are new Spirit and a cheaper pellet line coming for 2025, and before this announcement, there were no plans for the next generation of griddles for several years.
 
Brett-EDH said:
I disagree. Weber likely has substantially more revenue than Blackstone. There’s a synergy from reducing sales, marketing and a consolidated and more diverse distribution channel in one company versus running two.

While the businesses will be housed in different states and locations, the profits will come from a single stronger one company versus two companies that have redundant functions.
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No one knows for sure since the deal terms remain private.

But reading the PR as a corporate/M&A lawyer, imo the vibe is very much that Blackstone is buying and Weber is selling. Weber may be bigger revenue piece, but the growth, momentum, Blackstone founder continuing ownership, and post-deal management all point Blackstone's way.

And Weber's recent history also suggests Weber is getting sold.

Weber's family owners partially sold out to a PE firm in 2010. Then Weber went IPO in 2021. An IPO is supposed to be an "exit" for the PE fund. Meaning they can monetize their investment over time by selling their shares into the public market. But Weber's IPO flopped (as did Traeger's) and Weber's PE firm bought the company back in a going private transaction in 2023. That is not typical. Post-IPO the PE fund wants to be selling WEBR stock and moving onto other investments. So the fact that they had to buy WEBR back says nothing positive at all.

Having bought WEBR back, the PE fund is now imo selling Weber to Blackstone and hoping that they will do better by letting the Blackstone management run the show. And actually be able to fully monetize/exit from their Weber investment. Which investment was originally made 14 years ago in 2010.

FYI, PE funds like to be out of their investments in 5-7 years....
 
Seems like a good merger to me. They are #1 and #2 in market share. They make diverse products with Weber being primarily grills and Blackstone making griddles. Rather than develop competing products, it makes sense to combine forces and dominate the market. The best of both designs can be used and we should benefit as consumers.
 
Jim C in Denver said:
No one knows for sure since the deal terms remain private.

But reading the PR as a corporate/M&A lawyer, imo the vibe is very much that Blackstone is buying and Weber is selling. Weber may be bigger revenue piece, but the growth, momentum, Blackstone founder continuing ownership, and post-deal management all point Blackstone's way.

And Weber's recent history also suggests Weber is getting sold.

Weber's family owners partially sold out to a PE firm in 2010. Then Weber went IPO in 2021. An IPO is supposed to be an "exit" for the PE fund. Meaning they can monetize their investment over time by selling their shares into the public market. But Weber's IPO flopped (as did Traeger's) and Weber's PE firm bought the company back in a going private transaction in 2023. That is not typical. Post-IPO the PE fund wants to be selling WEBR stock and moving onto other investments. So the fact that they had to buy WEBR back says nothing positive at all.

Having bought WEBR back, the PE fund is now imo selling Weber to Blackstone and hoping that they will do better by letting the Blackstone management run the show. And actually be able to fully monetize/exit from their Weber investment. Which investment was originally made 14 years ago in 2010.

FYI, PE funds like to be out of their investments in 5-7 years....
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some insight into Blackstone's revenues:
itoaction.com

Brand Strategy Example: Blackstone Griddles & Accessories - Insight To Action

Griddlers Can Buy Endless Accessories from Smashburger Sets to Professional Breakfast Kits Blackstone Products released its flagship outdoor griddle in 2008 to great fanfare from grilling enthusiasts who were seeking new culinary experiences. In this brand strategy example, we’ll see...
itoaction.com itoaction.com

“Full Year 2021 Financial Highlights (Preliminary and Unaudited). Net Revenue increased 65% to approximately $484 million, compared to $293 million in 2020. Gross Profit increased 74% to approximately $98 million, compared to $56 million in 2020. Adjusted EBITDA increased 120% to approximately $70 million, compared to $32 million in 2020.”
i think the new CEO is a good fit for the PE to exit as Matula, the current and outgoing CEO is likely near retirement and Dahle (Blackstone CEO) is younger and will be a solid steward of Weber products in the outdoor/grilling space. and that the two companies are very synergistic.

it's pretty hard to find a CEO with this market/industry depth, thus the decision seems to make sense in the handoff from PE to a steward who will/could grow revenue over time.

some Weber financial numbers for reference: https://www.statista.com/statistics...r Inc,approximately 0.29 billion U.S. dollars.

Weber Inc. revenue 2019-2022​

Published by
Thu Huyen My Nguyen,
Nov 1, 2024
The revenue of Weber Inc. with headquarters in the United States amounted to 1.59 billion U.S. dollars in 2022. The reported fiscal year ends on September 30.

Compared to the earliest depicted value from 2019 this is a total increase by approximately 0.29 billion U.S. dollars. The trend from 2019 to 2022 shows, however, that this increase did not happen continuously.
 
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