3M acquires Meguiars

Another small business gobbled up. If he wasn't already, Barry and family should be set for life now.

3M to Acquire Meguiar's Inc

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ST. PAUL, Minn.--(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

Wow ya that will set Barry and his family for sure.
Think that we will now see Mequiar's on Nascar or any other race car for a sponsor?





:toocool:

In 2005, Meguiar's sales were estimated to be $100 mil.
The car wax business has fallen considerably since then but it is still a big biz. Let's say that it is still a $75 mil biz. Typically, a business sells for a multiple of sales OR a multiple of earnings, I would guess that 3M paid 1 X sales, so the Meguiar family got perhaps $75mil. After taxes, that should be $45 mil, not including Barbara Boxer's cut. Assuming that it takes $10 mil in investments to live comfortably (but not lavishly) off the return, it depends upon the number of owners of Meguiar's to determine if they are "set for life"

mike in tucson

3m is a good company, has good products, and is involved in Nascar.

Quote:

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Originally Posted by robot

Assuming that it takes $10 mil in investments to live comfortably (but not lavishly) off the return, it depends upon the number of owners of Meguiar's to determine if they are "set for life"

mike in tucson

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Gosh Mike, you have a lot higher standard of living than I do if $1 million a year or more (conservatively figuring 10% return) only gets you comfortable. :confused: :LOL: ;)

Pat

Stu, remember that 1mil is before taxes!!! You only net about $600K after taxes. Figuring that, if you had that income, your cost of living would rise to match it (like the volume of a fart in a room, it would expand). You would need to purchase additional toys, etc.

As much as some people will disagree, a million dollars "in the bank" isnt that much anymore....

This doesn't make me enthusiastic - sorry Barry, but you have just sold out a premium company and product (like Budweiser) to an uncaring anonymous conglomerate. You have become a prostitute to big business. Generally what happens with these is that until the new company completely takes over with their management, employees will stay reasonably happy. When that management is replaced, and it's usually over a fairly short time, the old hand hourly guys lose their incentive to produce a superior product and eventually drift away. Their raises and performance reviews become a calendar date and are dictated by corporate decrees. The big boss's door is not down the hall, but in some major conglomerate main office in a distant city. While the Meguiare's name will remain, Barry, after his new boss pisses him off once too often, will eventually drift off to retirement somewhere to count his money. It will just become another overpriced but average 3M product, a profit and loss division that will either make it or get dumped or shut down. 3M will be competing with their own house brands - and I can assure you that the existing 3M management will compete.

One bright note, it stays a USA company - at least for a while

Funny one I saw with Meguiars a few years back, they started making a great tire dressing.
Came in a package with a cut to shape form fit to the curve of the tire applicator.

I did the 32's tires and they looked new.
Not the shiny artficial looking car show hard 'shine', but the soft black of a new tire.

The next application was two years later.
The tires looked good all that time.

The product was dropped, I believe because it was too good and lasted too long and that cut into sales.

Haven't bought any Meguiars since.


I agree that Meguiars is on the way out.
I'm guessing that big companies buy the little ones so they can destroy the competion and more than likely get a tax break for doing so.

Do it enough times and before long the 3M execs realize it's safe to take 3M to China, grab your golden parachute and wonder why things are not as good as they once were....

3M bought the Meguiar's name....Mr. Meguiar is already well-enough positioned (products are very high mark-up) that he will operate as a spokesperson for a while, then he will fade away and enjoy his bucks. By buying the brand name, 3M now controls the aftermarket car-care lotion industry....they already have a majority of the professional market so this purchase makes good business sense.

3M appears to be a pretty darned good company to work for.

mike in tucson

I will always try to support the little guy... Mothers is now on the list to support.

Well, now Barry can have more cool toys and time to plat with them good on him. I have no problem with 3M products, they make a lot of good stuff that nobody else can even touch. So now my 2 main shining products, 3M rubbing compound and Meguire's polish, will both come from the same source.

Quote:

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Originally Posted by ScooterCO

I will always try to support the little guy... Mothers is now on the list to support.

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For another "Little Guy" also try Adams Polishes. Their detail spray is the best I have ever used. I buy it by the gallon :) Can't vouch for their other products, but plan to try them as I use up stuff I have. They have some great deals on polishing pads too.

www.adamspolishes.com

Pat

Glad to see that it stayed here at home with an American company that employs American workers instead of being offed to a foreign investor.:)

Let me clear a few things up.
Barry is Meguiars he has no sons to take over the buisness when he decides to hang it up. He does have 2 daughters neither are involved with the buisness based on what they wanted to do and live their own lives. Grand kids are way to young ( pre teen) to get involved.
The Meguiars name and products will stay....Meguiars has a better feel and relationship with the consumer. The pro series might not stay the same but that is yet to be seen and nothing has been said about that. Just my $0.02
Barry lives a nice life as he should based on what he has worked for but is not over the top like most would think. His toys are limited but nice he put much of his funds into Car Crazy for folks like us and with 3M on board this will be back bigger than ever.
Meguairs sponsors over 11000 car shows and events a year....this comes straight from the bottom line. They attend about 800 or so each year and it is staggering the price to bring a truck and crew out for a weekend ( these start on Wed and run through Sunday for the crew)
The tire gel someone metioned is called endurance and iis still made with the applicator. Talk with your loacl store manager to get some or you can order at www.meguiars.com or call the 800 number. All 3 trucks carry this product at all shows if you see them there
Also rumor that Adams will be sold also soon but agree they have good products as well