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Here's some news I picked from the NRAA Board.
Rapala VMC Oyj: Rapala acquires the fishing tackle business of luhr jensen
Tuesday 18 October 2005 13:15 EEST Kauppalehti Online
RAPALA VMC OYJ Stock Exchange Release, October 18, 2005
1(2)
RAPALA ACQUIRES THE FISHING TACKLE BUSINESS OF LUHR JENSEN
Rapala VMC Oyj ("Rapala") has finalized the acquisition of lures and other
fishing tackle business of Luhr Jensen & Sons, Inc ("Luhr Jensen"), a Hood River,
Oregon, USA based manufacturer of fishing lures and accessories. The
consideration of the deal comprises of cash and newly issued shares of Rapala.
The part of payment that will be made in shares will take place after one year.
Founded in 1932, Luhr Jensen manufactures a wide range of lures for freshwater
and saltwater species, including the Kwikfish, Krocodile, J-Plug and Hot Shot.
Luhr Jensen is one of the five largest lure companies in the USA and is the
market leader in the Pacific Northwest and Alaska, the USA and in British
Columbia, Canada. The brand is particularly well known in market segments, which
target species such as salmon, trout and steelhead. The company also sells a line
of cooking products, which are not included in the acquisition. Luhr Jensen
employs some 200 people in Hood River and some 60 in Mexico. The transferred
business does not include the personnel with only few exceptions. The net sales
of its lure and fishing tackle business were somewhat below USD 9 million (below
EUR 7 million) in the financial year ended in June 30, 2005.
"Luhr Jensen is an ideal fit for the Rapala family of brands," said Jorma
Kasslin, CEO of the Rapala VMC Group. "Their products have a great reputation
with anglers and are widely known for their quality craftsmanship. We intend to
take this quality brand to the global marketplace via our network of Group
distribution companies. In addition, with Rapala and Luhr Jensen combined, we are
definitely the world's largest manufacturer of metal fishing lures."
"It was a difficult decision to sell the business that was founded by my father
more than 70 years ago," said Phil Jensen, President of Luhr Jensen. "But the
decision was made easier knowing that the Luhr Jensen traditions of dedication,
quality and service will continue under Rapala's leadership." Phil Jensen will
continue as a consultant to the Rapala Group and board member of Normark USA, the
Group's wholly owned US distribution company.
Luhr Jensen will join Rapala, Storm, Blue Fox, VMC, and Williamson in the Rapala
family of brands. The production of Luhr Jensen products will be transferred to
the Rapala factories, primarily Rapala's factory located in Shenzhen, China,
during a 12-month transition period.
This acquisition is part of Rapala's strategy for profitable growth. It
contributes to the Group's brand strategy and portfolio while it leverages
Rapala's unique manufacturing and distribution platforms.
Rapala VMC Corporation
Jorma Kasslin
_________________
David Delcloo aka Superdad
(Retired)
Kingston
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