3M to Acquire Meguiar's Inc.

[BlueZero]

True?

What do you guys think if it is?

Can anyone from Meguiar's comment?

Edit: Add link... Link

ST. PAUL, Minn., Sep 08, 2008 (BUSINESS WIRE) -- 3M announced today it has entered into an agreement to acquire Meguiar's Inc., the 100-year-old family business that manufactures the leading Meguiar's brand of car care products for cleaning and protecting automotive surfaces. Terms of the transaction were not disclosed.
Meguiar's brings its renowned products and proud history--from its beginnings providing Mirror Glaze polishes and waxes for professional use to today's top-of-the-line products for everyone dedicated to maintaining a brilliant finish on their vehicles--to 3M's range of automotive aftermarket products. Meguiar's products include waxes, polishes, cleaners, conditioners and protectants for the automotive and marine markets.
"The addition of Meguiar's builds on our professional offering for the automotive industry and brings the expertise of Barry Meguiar in the growing enthusiast market for car care products," said Ian Hardgrove, vice president, 3M Automotive Aftermarket Division. "Together, Meguiar's and 3M will collaborate to deliver even more innovative high performance products for enthusiasts around the world."
Car enthusiasts know Meguiar's not only for its products but also for its presence at thousands of car shows across the country featuring every type of collector car from hot rods and muscle cars to exotic sports cars to vintage classics. Through Meguiar's internationally syndicated, multimedia broadcasting network, people with a passion for cars can experience major automotive events and the latest collector car hobby news.
"Combining with 3M will greatly enhance our ability to serve and support Car Crazy people on a global basis," said Barry Meguiar, president and CEO, Meguiar's Inc. "We are excited about the opportunity to grow our business by joining forces with one of the world's great global companies--working together to increase our support of the car hobby worldwide."
3M's Automotive Aftermarket Division provides a comprehensive line of 3M products for auto body repair professionals and auto enthusiasts. Products include abrasives and accessories, performance cleaning products, waxes, masking tapes, panel bonding adhesives, general adhesives coatings and sealers, paint finishing polishes and compounds, and paint application systems. Complementary acquisitions such as this support 3M's growth strategy to strengthen its core businesses and expand into adjacent markets.
Meguiar's is headquartered in Irvine, Calif., and employs approximately 115 people. The transaction is expected to be completed in the fourth quarter subject to customary closing conditions, including regulatory approvals.
Sawaya Segalas & Co., LLC acted as exclusive financial advisor to Meguiar's Inc.
About Meguiar's Inc.
For over 100 years, Meguiar's Inc. has been providing Car Crazy people with specialized state-of-the-art formulations for making the appearance of cars "show car perfect." Chosen by 20 out of 24 "Best of Class" winners at the 2008 Pebble Beach Concours d'Elegance, Meguiar's provides highly specialized products for every automotive surface, including paint, wheels, tires, and interiors. As part of its passionate support for the car hobby, Meguiar's sponsors more than 11,000 car shows globally and produces Meguiar's Car Crazy Television and Radio that represent car enthusiasts worldwide.
About 3M
A recognized leader in research and development, 3M produces thousands of innovative products for dozens of diverse markets. 3M's core strength is applying its more than 40 distinct technology platforms -- often in combination -- to a wide array of customer needs. With $24 billion in sales, 3M employs 79,000 people worldwide and has operations in more than 60 countries. For more information, visit www.3M.com.
SOURCE: 3M

[VoicesInMyHead]

Re: 3M to Acquire Meguiar's Inc.

[03mach1]

Re: 3M to Acquire Meguiar's Inc.

Do not merge please. I like that Megs has been around for that long as a family business. Meguiars please do not merge if this article is true.

[RaskyR1]

Re: 3M to Acquire Meguiar's Inc.

This would make me sad.

EDIT: I have very mixed feelings this.

[the other pc]

Re: 3M to Acquire Meguiar's Inc.

Well, there's a bit of a surprise.


PC.

[C30-Mike]

Re: 3M to Acquire Meguiar's Inc.

Say what??!!

Uh... I am speachless.

[PorscheGuy997]

Re: 3M to Acquire Meguiar's Inc.

Well, I hope that the quality products and tradition remain with Meguiar's.

One of the most important reasons I always come to Meguiar's is that I know that the products do what they say and the Customer Care group is always there to back it up.


I hope nothing changes...




Seems like 3M is buying up the car care industry (recently acquired Edge products).

[Wolf-Strong]

Re: 3M to Acquire Meguiar's Inc.

An agreement doesn't mean a merger. Meguiar's can still be a family owned business and independent. At most, I would say that they are entering into a partnership. Think of it this way: A merger is like marriage. Once you are in, you are in for life pretty much. A partnership is having a friend help you lift weights; you both are in it to achieve something, but that is as far as it goes.

Looking forward to more details from Meguiar's though so we know what exactly is going on. As far as I see it, 3m has a HUGE R&D budget, which means coupled with Meguiar's strive for perfection in car care, this could lead to some FANTASTIC products.

All I say is stay a family owned business though and don't go public! I see it time and time again that once a company goes public, things seem to go down hill in terms of quality.

[jfelbab]

Re: 3M to Acquire Meguiar's Inc.

I suppose we all should buy enough supplies to last through the transition. I'd expect some changes in the marketing, manufacturing and distribution of the merged operation. There are a good number of product duplication apparent as well. Since 3M is the 500 pound gorilla here, I fear we will see some significant changes and a few that we might not be too excited about. Hope I'm wrong. Not all negative though as 3M has some great products too.

To all the great Meg's employees, I hope this transition works out for the best for you.

[Hemin8r]

Re: 3M to Acquire Meguiar's Inc.

Am I going to have to learn a new system? Hopefully it all works out and I guess we will have to wait & see.

[audionutmike]

Re: 3M to Acquire Meguiar's Inc.

An agreement doesn't mean a merger. Meguiar's can still be a family owned business and independent. At most, I would say that they are entering into a partnership. Think of it this way: A merger is like marriage. Once you are in, you are in for life pretty much. A partnership is having a friend help you lift weights; you both are in it to achieve something, but that is as far as it goes.

Looking forward to more details from Meguiar's though so we know what exactly is going on. As far as I see it, 3m has a HUGE R&D budget, which means coupled with Meguiar's strive for perfection in car care, this could lead to some FANTASTIC products.

All I say is stay a family owned business though and don't go public! I see it time and time again that once a company goes public, things seem to go down hill in terms of quality.

Very good points. Once you've got investors to please, everything else is secondary, it seems. A "partnership" might not be too bad, if 3m can help back more research and advertising. Other than that LEAVE THEM ALONE!!!!

[Paul S]

Re: 3M to Acquire Meguiar's Inc.

On autogeek yesterday a member mentioned 3m buying Edge pads inc.I wonder if this is connected or Edge was mistaken for Meguiars.Hope everything works out for the employees and the reputation of Meguiars is upheld.

[Murr1525]

Re: 3M to Acquire Meguiar's Inc.

Ugh...

[Sandstone]

Re: 3M to Acquire Meguiar's Inc.

The language states, "agreement to acquire Meguiar's Inc.," so this is an acqusition and not a merger or partnership. 3M is a good company with a breadth of interesting products. Think positive synergy .

[jfelbab]

Re: 3M to Acquire Meguiar's Inc.

An agreement doesn't mean a merger. Meguiar's can still be a family owned business and independent. At most, I would say that they are entering into a partnership. Think of it this way: A merger is like marriage. Once you are in, you are in for life pretty much. A partnership is having a friend help you lift weights; you both are in it to achieve something, but that is as far as it goes.

Looking forward to more details from Meguiar's though so we know what exactly is going on. As far as I see it, 3m has a HUGE R&D budget, which means coupled with Meguiar's strive for perfection in car care, this could lead to some FANTASTIC products.

All I say is stay a family owned business though and don't go public! I see it time and time again that once a company goes public, things seem to go down hill in terms of quality.

Clearly, Meguiar's will no longer be family owned, as it is now to be owned by 3M, a huge publicly owned company.

3M at a Glance (Year end 2007)
Worldwide sales: $24.5 billion
International (non-US) sales: $15.500 billion (63 per cent of company's total)
Operations in more than 60 countries
3M products sold in nearly 200 countries
More than 75,000 employees
3M employs mostly local nationals. Fewer than 300 3M employees worldwide not living in their home countries
Plant locations: 145 worldwide
Sales office locations: 169 worldwide


The difference in family owned and publicly owned is often too obvious.

•Family owned companies do things to foster long term success and this follows the passion of their leadership.

•Publicly owned companies primary motivation is quarter over quarter profit for shareholders, often not looking as much for long term profits.

•Family owned businesses only need to follow singular passion and provide goods and services to make their customers happy.

•Public companies cater to shareholders frequently putting customer satisfaction secondary to bottom line.

Case in point...
Compare Meguiar's satisfaction guarantee to 3M's Warranty and Limited Remedy policy.

Compare Meguiar's well trained and staffed 800# customer service agents to 3M's.

When was the last time you saw a 3M add marketing their automotive products?

When was the last time you saw 3M at a car show much less sponsoring such shows?

IMVHO, Meguiar's has shown a passion for their products and their customers while 3M has shown a passion for their bottom line. Family owned businesses often will make decisions that are not particularly financially attractive but since they don't have to answer to shareholders they do it anyway because they believe that it is the right thing to do.

Now don't take this as an attack on 3M because they are a well run company that does make some very good products. I am only pointing out what I see as the difference between two types of companies and their differing motivations and philosophies.

About all we can hope for is that Meguiar's will continue autonomously with perhaps greater distribution and market reach, perhaps even more R&D. It may be easier to find Meguiar's Pro and Detailer line of products in local markets. On the other end of the scale we could see several of our favorite products products being dropped.