Shock Doctor sold to Bregal Partners

[shooter27 116]

Shock Doctor being sold, press release:

http://www.pehub.com/2014/03/bregal-partners-buys-athletic-brand-shock-doctor/

And for those of you that buy the narrative that PE firms simply buy companies, load them with debt, and cut jobs - the link below is explicit in saying there will be no job cuts at SD.

http://www.pehub.com/2014/03/bregal-partners-likely-to-fundraise-next-year-buys-shock-doctor/#.Uyg4u4MwSQ8.twitter

[CommodoreColt 19]

Shock Doctor being sold, press release:

http://www.pehub.com/2014/03/bregal-partners-buys-athletic-brand-shock-doctor/

And for those of you that buy the narrative that PE firms simply buy companies, load them with debt, and cut jobs - the link below is explicit in saying there will be no job cuts at SD.

http://www.pehub.com/2014/03/bregal-partners-likely-to-fundraise-next-year-buys-shock-doctor/#.Uyg4u4MwSQ8.twitter

Take that quote however you like, but every acquisition somes standard with that statement whether or not they end up backing it up in the future.

[shooter27 116]

Yes, every deal has a boilerplate press release, I've read and produced too many of them to count. The point is, very rarely do those press releases specifically mention plans for cutting or not cutting management and/or employees. If you're plan is to cut people, you're not going to put a quote like that out there only to have someone bring it up later. That doesn't mean people won't lose their jobs, but those that do will do so on the merits (or lack thereof) of their work and are likely be replaced instead of fired for cost savings It also doesn't mean that in time, if financial performance declines, that some jobs won't be cut. My point was that many people think of PE as a cut people, burn up the company, take the cash, and leave scorched earth behind kind of industry and that's simply not the case in most scenarios. Does it happen? Sure, but it's the exception rather than the rule.

[CommodoreColt 19]

It's interesting that you want to make defending private equity the lede of this story. Private equity or not is a moot point here.

Thank you for sharing the link though. The pieces of Shock Doctor equipment I've used left good impressions. I still use the skate insoles.

[donkers 31]

I didn't know Mitt Romney was a hockey fan...