Since 2021, ongoing cash flow deficits also contributed to higher debt. The company’s debt balance sheet doubled over the past two years due, in part, to having to fund the acquisitions of Plano Synergy in April 2021 and Svendsen Sport in February this year, added the report. In addition, said Moody’s, the elevated level of inventory has negatively impacted reorders. Pure Fishing reported ‘meaningfully lower operating results’ in fiscal 2022, with year-on-year revenue declining 14.6% as persistently high inflation and weakening macro-economic conditions pressurised consumer demand for its product. “We expect that demand and industry headwinds will persist in 2023 and the company has limited financial flexibility to absorb prolonged revenue pressures given its constrained liquidity. “The rating downgrade and negative outlook reflects Pure Fishing’s unsustainable capital structure and the elevated risk of default over the next 12 to 18 months given its very high financial leverage,” said Oliver Alcantara, AVP-Analyst at Moody’s. Moody’s Investment Services lowered Pure Fishing’s Corporate Family Rating – long-term ratings that reflect the likelihood of a default on a corporate family’s debt – and Probability of Default Rating both to Caa2 (very high risk). An exciting new journey has just begun for our companies, our valued associates and the many market leading brands under the Plano Synergy umbrella.The financial rating of Pure Fishing has been downgraded as sales at the world’s largest supplier of fishing tackle declined by nearly 15% last year. We plan to continue our dedication to exceeding our customer expectations in product innovation, market leadership and world-class customer service. Hurt added, "We look forward to working together to grow both the exciting Synergy portfolio of brands and Plano's heritage brands to their full potential. "The Plano management team and I are extremely excited to be partnering with Ryan and Matt Busbice along with the wide range of talented personnel across Plano Synergy Holdings" stated Tom Hurt, the Company's President and CEO. Ryan and Matt will assume senior management positions with the combined company, and will join as significant shareholders in Plano Synergy Holdings. Ryan, along with his brother Matt and father Bill, star in the hit television show "Wildgame Nation" which airs on the Outdoor Channel. Synergy Outdoors, based in Baton Rouge, Louisiana, and founded in 2002 by Ryan Busbice, has grown rapidly since inception by developing industry leading brands, focusing on product innovation, and reliably delivering for its retail customers. Plano is currently owned by management and the Ontario Teachers' Pension Plan. It also produces cases for cosmetics, tools and crafts, as well as storage containers and shelving for home and office. Together, the companies will form one of the leading platforms in the outdoor products industry and will be ideally positioned to accelerate growth both organically and via acquisition.īased in Plano, Illinois, and founded in 1932, Plano is recognized as the leading brand in fishing and fall sports markets where it proudly supplies tackle boxes, bait storage, gun cases, archery cases, and Frabill branded ice fishing, landing nets and live bait storage products. Synergy Outdoors is a market leader in hunting-related products, and is home to a portfolio of market leading brands, including Wildgame Innovations, Barnett Outdoors, Ameristep Hunting Products, Flextone Game Calls, Halo Optics and Evolved Harvest & Habitats. Plano is a leading brand in the fishing accessories market, and is the premier supplier of outdoor sports storage systems. Plano Molding Company (Plano) and Synergy Outdoors are pleased to announce a newly formed strategic merger called Plano Synergy Holdings.
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