Snapper Sold - Simplicity Enters Acquisition Agreement

Port Washington, WIS. - Rumors of Snapper's "for-sale sign" have kept industry speculators on their toes for months. Outdoor power equipment didn't mesh with the rest of Metromedia International Group's (AMEX:MMG) ventures - global communications - and the parent company's restructuring initiatives launched a process to sell Snapper late in the first quarter 2002.

Simplicity announced today it entered an agreement to purchase Snapper's assets, which will double the company's revenues to nearly $350 million, push its dealer network from 3,500 to 5,500, and increase its employee size to1,300.

"We just last night at 7:15 p.m. signed the agreement to acquire Snapper, which is a great fit for Simplicity," remarked Jim Wier, president and CEO of Simplicity, Port Washington, Wis. "Our tagline is The Dealer Line, and we've been committed to the dealer forever, and Snapper fits in really well with the mission."

The agreement is subject to the satisfaction of certain conditions and is expected to close in 30 days. However, Simplicity's discussions with Metromedia started much earlier, when Wier approached company and offered a "fair value for the company," explaining the similarities in Snapper's and Simplicity's missions. Ironically, Wier discovered a dated in-depth study a couple days ago that outlined these same points. "I was cleaning out some old papers a couple of days ago, and I found a write-up on study we'd done on why Snapper and Simplicity made sense, and it was dated 1996," he remarked.

Years later, and after months of discussion,  Simplicity welcomes Snapper to its lawn and garden product mix - an addition to the Ferris and Giant-Vac acquisitions the company sealed in the last three years.
 Simplicity's industry focus will strengthen the Snapper brand, and Wier said dealers can expect investments in advertising and new product introductions as soon as Spring 2003. "Simplicity knows and understands the business, knows the dealers and has a long history of serving the dealer well, and it is a company that has the financial resources to invest in Snapper, and that is a major difference because the previous owner didn't have the resources to invest what needed to be invested in the product and brand," he noted.

Snapper will operate as a stand-alone company, similar to Ferris and Giant-Vac. The only distinction will be a national sales network and marketing group that will fall under the Simplicity umbrella, Wier explained. Furthermore, Snapper products will continue to be manufactured at its McDonough, Ga., plant. In-house dealer support will remain with Snapper as well. 

Wier will lead the management group at Snapper, working closely with Shane Sumners, who will serve as its president and chief operating officer. Simplicity corporate headquarters will remain in Port Washington, Wis.
 Wier emphasized the advantages dealers will see with the acquisition, highlighting Simplicity's commitment to its dealer network and noting that, "We see Snappers' focus as well as Simplicity's focus to be servicing the independent dealer.

"We are really enthused about these two companies joining together, and I think it positions us as, perhaps, one of the strongest companies serving the dealers," he added. "Size does matter, and it does give us a much better size and a better array of products to help the dealer."

The author is Managing Editor - Special Projects for Lawn & Landscape magazine and can be reached at khampshire@lawnandlandscape.com.