Bessey Acquires Gross Stabil Clamping Products

[thrytis]

I caught a bit here about Bessey acquiring Gross Stabil's clamping business. I've only used Bessey's so i don't really have an opinion on this, but thought it was interesting. Perhaps some sales to be found as they close out old products.

[HarmsWay]

Interesting, an case of buying the competition. I own some of each of the two and prefer the GS. It a shame unless Bessey will redesign to take the best of each.

Bob

[Jeffrey Schronce]

I like GS as well. I think we'll see some changes at GS/Bessey to keep up with the new competition from other suppliers. I think it will be a good thing.

[coach]

I have GS, and prefer them to my Bessey's. However, I reach for the JET first.

[HarmsWay]

I have GS, and prefer them to my Bessey's. However, I reach for the JET first.

I don't think the JET clamps are available in Canada anyway, but what do like about them?

[scorrpio]

I think it will be similar to how Black&Decker owns Dewalt. B&D are cheaper, consumer grade tools, while Dewalt is higher-priced, higher quality brand targeted at a more professional user.

[LCHIEN]

Product improvement is rarely a top goal of merger/takeovers of companies with competing product lines. Usually the elimination of a competitor and gain of market share is the main agenda, even if they don't like to state so. Usually there's some consolidation of duplicated overhead customer service, manufacturing and sales, but rarely do the R&D departments survive with a final size equal to the combined R&D size.

while the short term may yield some "deals" on clearance items, in the long run loss of competition and innovation is rarely good for the consumer. However, with Jorgy, Bessey, Jet and even HF in the mix for parallel clamps there's the argument that 3 majors will still provide some good quality, innovation and price competition forces.

[scorrpio]

Not product improvement - rather, market range expansion.

Suppose your company is doing well on mainstream, midrange version of a product, but you also want to expand into high-end sector.

One option is to start making high-end yourself, which means investment in new production lines, potential patent infringement problems with other high-end vendors, and the break in time of establishing yourself in high-end sector. If you market under same brand as your midrange stuff, it might never get traction in high-end. If you create a whole new brand, you'll need a lot of investment in marketing it in order to get it accepted.

Or, if you find an established high-end niche business willing to sell, you can acquire it all -their production lines, their patents, their established reputation and devoted customers. The acquisition might raise a few fears, but if there is no drop in quality, those fears will dissipate quickly.