Haier to take over Fisher Paykel: DEAL NOT DONE?????

****UPDATE 10/5****
Offer rejected by F&P
Will Haier sweeten the offer?
****UPDATE 10/5****

****UPDATE 9/14****
F&P claims others still looking at making an offer
New Zealand Herald
****UPDATE 9/14****

****UPDATE 9/12****
Haier to acquire F&P for $564 million
Bloomberg Business
****UPDATE 9/12****

National Business Review of New Zealand reports that Chinese appliance maker Haier, plans to increase stake in Fisher Paykel from its current 20% holdings all the way up to 100%.  The whole enchilada.

Did this whole bloody long collapse start with the decision to acquire DCS and fire the DCS distributor network? 
Was the collapse of Fisher Paykel driven by some mis-placed decimal point on a DCS acquisition strategy paper?  Assumptions of sales and margins without distributors, all of which supported some crazy price for the DCS company?

Or was it an original sin; the idea that a company could launch a brand from scratch in the largest market in the world without 2-step distrubtion, but with a gold plated private sales force?

We imagine only the accountants know for sure.

National Business Review Story

Want to see where the End Began?
Fisher Paykel Buys DCS:  Effects and Summary

 

16 Responses to Haier to take over Fisher Paykel: DEAL NOT DONE?????

    • Had no idea what they were doing and really screwed up a good product line. The purchase by the investment group prior to that was just as bad and the demise of a solid product line started with that original purchase from Surjit. The fact they went though four or five presidents back then should tell you something. Surjit developed some strong customer partnerships that I have yet to see matched and he knew where he got his rewards from. These other guys had no passion and F&P thought that everyone before them was dumb..Oh well.

  1. Having been with F&P from the early days in the U.S. it really pains to see how they are being taken over by the Chinese. Gary Paykel and his board were the "old school", interested in making a niche product that would allow independant dealers to make a fair margin.

    Unfortunately, the attitude of senior management in the USA was always the same..Americans are stupid so the only folks that can run the company in the U.S. are New Zealanders and Australians! These guys were great individuals, but had little or no experience of the U.S. Appliance market.

    The rest is history!

    • I myself talked with you folks on several occasions and your attitude was one of little confidence in American Managers.Perhaps it was how you may have treated them. I suspect you may think your world is the center of the manufacturing universe., however that is doubtful and I speak from some very successful history of my own.I have purchased several different components from Aussie suppliers and now have stopped. One of those suppliers had to fix a fiield problem costing them $500,000 just with us at the time. You also wanted us to build ovens for you and we declined because it interfered with our market. So I suggest you look at yourself and be a little more critical of how arrogant you all were and if you would have hired the right people from America perhaps you would be in better shape. I went to one show after you purchased DCS and could get no one to speak with me since they were wearing their blue shirts and talking about where they would go to dinner.The first step in improvement is to put the blame where it belongs and fix it. You were arrogant , thought you knew more and bango here comes Haier. The only good thing you did was purchase DCS for $30 million less than what the investors paid for it and that was a fair price.Your total mismanagement brought you down , not some American in a cubicle. Get the facts right Marty.

    • I agree 100% with you that the Aussies & Kiwis were great individuals but there were reasons why they had no faith in Americans running the show here. Half of the American mangers, sales & service were constantly bickering & fueding like 12 year olds. You needed a soap opera digest to find out whom was fighting with whom. This non-sense led to many good people getting forced out, while most of the use-less dead wood continued to earn high paying salaries. Before I left, my last bit of advice I made to the regional manager of operations, who was Aussie. Was to fire or demote all the American managers & replace them with ones from NZ & AUST.

  2. Seems like you have not understood my point at all. I have not worked for F&P for many years, so I am "not one of them"!

    The facts supplied by me are accurate, and I stand by them. It is unfortunate that your ego appears to get in the way of recognising the truth!

     

    • I am too old to have an ego but what I speak is from our discussions in an office and on more than one occasion. The fact is F&P ruined DCS , not me , not any ego and certainly not a nasty mid level American Manager that you so rudely and egotistically I may add trash. Perhaps you were not high enough in the food chain to be a part of our discussions but you folks "screwed the pooch" so to speak.

  3. … the headline sez $564M but the article quotes $570M while other portals report anywhere up to $704M US …

     

    I suspect it is because no one yet knows which parts Haier will keep, which they will sell off, or which they will kill …

     

    Let’s hope DCS gets sold off to someone who will do more than F&P did with it, which means doing anything !!! 

  4. … "blocking bid" might simply be the result which would confirm some peripheral reports that some shareholders think the present offer is too low … 

     

    It could be an interesting strategy to assess just how badly Haier want to go to acquire F&P … 

     

    It’s rarely what it appears on the surface … should be interesting to watch !!!  

    • THANKS FOR LINK!!! Very intresting reading. Im curious. Since you’re from NJ, I was wondering if you ever attended any of the dealer demos at F&P’s showroom in South Brunswick???

  5. In an article in Tuesday’s Otago Daily Times of New Zealand, F&P Chairman Keither Turner has issued a letter to shareholders urgeing  them to wait until the 10/10 report from the independent board formed to evaluate the Haier offer … 

     

    Now, normally this would be just a request to wait for "due diligence" but it comes across, especially in the light of my previous posting on the takeover, as wondersome to me … Maybe it’s the quote from the Turner letter which said:

     

    "Your independent board of FPA recommends that you take no action in relation to this offer, at this stage."

     

    Here is a link to the full article:  

    http://www.odt.co.nz/news/business/227331/fpa-advises-offer-caution

     

    Seems as if the great philosopher, Yogi Berra’s words are still correct:  "It ain’t over ’til it’s over !!!"

     

    • On the overnight, the newspapers in New Zealand, as well as stateside business dailys are all reporting that the Fisher & Paykel independent board is recommending that the Haier offer NOT be embraced !!!

       

      This may turn out to be a moot point since Haier already "owns" just south of 38% of the voting stock … 

       

      All shareholders will receive the full offer on/by October 10th …

       

      It could be just a matter of time and numbers before they pass out the lyrics to "Con te Partero" !!!

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