The 'E' Type Forum

Looks like SNGB have been Aquired by Radial Equity Partners....they also acquired Moss, Rimmers and Coker tires recently...more detailes and email sent out by SNGB over on JagLovers....Steve https://forums.jag-lovers.com/t/sng-bar ... oup/454589

Well, I hope this goes well but I have my doubts.

Press reports on buy-outs by Equity partners says that they simply load a good company with massive debt and then p*** off. I hope that will not happen to SNGB.

Geoff

It's the oldest trick in the book.

Invest £100m with a 10% annual premium on the debt, which may be deferred. Take the dividends for a while then sell it on.

Apart from money, they often bring little to the table, leaving the management to figure out how they are going to service the debt.

Regards

"Growth oriented businesses", "new business opportunities", "enhancing market position". Expanding the business is all well and good, but the number of classic cars is, by definition, limited. This means expansion of the current business is coded language for cornering that market.

Having said that, all of these cars are fifty years old, so given they are high value items, every one of them will need to be restored, so there is some logic in the equity group positioning themselves where they have when they have.

kind regards
Marek

If you go to Radialequity.com then do some additional research, it appears they are more of a 'buy, improve, and operate" type of private equity company that is accumulating brands in specific industry verticals overseen by folks with knowledge of those verticals. I would venture to say most private equity companies operate like this, but do so quietly. I say that because I've worked for one of those for the last 30 years, and over that time have become acquainted with many others that are playing the long game of buy and hold to enjoy the stable income provided by businesses they have acquired and improved. It's the ones that buy, exploit, then sell that make the news.

With the jaGuar brand evolution I reckon SNGB will take over the stock inventory for all the current models and back which is indeed a "growth opportunity". Current Jaguar management have no interest in supporting the past so there is money to be made which is good news for the heritage models.

It's good to know that there are positive thoughts and possibilities for this development and I wish SNGB good fortune for the future.

My take is: the future is electric cars, this will make famous vintage classics, e.g. e-types, even more expensive and desirable. REP is aiming to be dominant global supplier to this high margin market.

Any global changes to either governments, institutions, entities or companies especially nowadays rarely are in mind to benefit citizens, patrons, the public or customers. But we live in hope.

‘Radial’s’ initiatives seem positive:
https://www.radialequity.com/portfolio-/moss-and-rimmer

What you need to consider is that this was an email to people in the sngb supply chain and not something for the end users.

The modus operandi is that you, the end user, make a purchase order via the website and thanks to a policy of low (or sometimes zero) just-in-time stock inventory, sngb then fires off an email to the supplier to deliver the already ordered (and paid for!) item to them asap. It was the suppliers who were being reassured that, despite corporate changes, it will be business as usual and they should keep supplying.

Any other perspective, whilst welcome I'm sure, is tangential to the issue they were hoping to address.

kind regards
Marek