Pyramyd Air Ltd. has been recapitalized by Gen Cap America, Inc.
Pyramyd Air Ltd., a global distributor of air guns,BB guns and parts has been recapitalized by a private equity firm.
edgepoint.com Big corporate moving in on us!!!
Have you guy's seen this?
- Thread starter ChuckHunter
- Start date
edgepoint.com Big corporate moving in on us!!!
Impossible to tell if it will be good or not.
Typically Private Equity (PE) firms do not buy companies with the intent to destroy them and as a result, tank their investment returns. However sometimes this is exactly what happens, especially if the PE firm really has no understanding of the business and tries to run it in a way that doesn’t work for that particular industry. One of the worst examples was the purchase of Remington by Cerberus Capital. That whole saga didn’t end well for anyone. Some of the investors lost their shirts, a lot of employees got screwed, etc. On the other hand, a lot of PE firms make tremendous returns on investment by fixing problems and then re-floating the companies on the stock market.
Time will tell…
Typically Private Equity (PE) firms do not buy companies with the intent to destroy them and as a result, tank their investment returns. However sometimes this is exactly what happens, especially if the PE firm really has no understanding of the business and tries to run it in a way that doesn’t work for that particular industry. One of the worst examples was the purchase of Remington by Cerberus Capital. That whole saga didn’t end well for anyone. Some of the investors lost their shirts, a lot of employees got screwed, etc. On the other hand, a lot of PE firms make tremendous returns on investment by fixing problems and then re-floating the companies on the stock market.
Time will tell…
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Remington (& Marlin, NEF/H&R)/Cerberus was the first thing that popped into my head. Utter s*** show in every way possible.
You're right though, it doesn't always turn out that bad & may even be a positive.
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From the Gen Cap website - it is described as a management buyout. Gen Cap likely provided debt and or equity financing to get a deal done, typically alongside the bank and other lenders, sometimes including continuing investment from the owner(s). Not the signs of the usual PE deal where the PE firm has control. If the management team can continue to generate sales, profits, and cash flow all should be good. Only if they tank it will the business end up with the bottom fishing Cerberus types.
See investment philosophy section on their website:
gencapamerica.com
GCA’s primary objective is to partner with owners and management teams who have a willingness to operate and grow successful businesses. As part of all our capital investments, senior management is involved in equity ownership to give them a meaningful stake in the success of the business.
See investment philosophy section on their website:
Investment Philosophy – Gen Cap America
gencapamerica.com GCA’s primary objective is to partner with owners and management teams who have a willingness to operate and grow successful businesses. As part of all our capital investments, senior management is involved in equity ownership to give them a meaningful stake in the success of the business.
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BTW Gen Cap if you see this make sure to go heavy on inventory - high end springers, especially in .20 cal; all the fx bits and pieces that are apparently needed to complete the rifle; match grade ammo; etc. etc.
Hard to get your fix lately, bulk up for us please.
Hard to get your fix lately, bulk up for us please.
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I've seen these buyouts the fail in the high performance automotive industry...I've seen this work well in the high performance auto industry !
Here's to crossing our collective fingers.
Mike
Here's to crossing our collective fingers.
Mike
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If I were a betting man. I would bet when the original owner sold the business several years ago he agreed to carry the debt for a period of time. This would give the new owners a chance to have a proven tract record so they would be able to qualify for equity financing. If so, I would think all is well.
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Recapitalized? NO DOUBT! Better than a year ( closer to 2 ) with very little inventory that counts. It's a wonder they're not all broke,
When I wanted to buy it was either PRE ORDER or OUT OF STOCK. Worse yet BACK ORDER.
Pyramyd is not the only one. We all have had to scour the world for pellets and the guns we WANT.
Another example of outsourcing and just in time inventory management.
Sorry, got off on a tangent.
When I wanted to buy it was either PRE ORDER or OUT OF STOCK. Worse yet BACK ORDER.
Pyramyd is not the only one. We all have had to scour the world for pellets and the guns we WANT.
Another example of outsourcing and just in time inventory management.
Sorry, got off on a tangent.
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You know Original owners grow old and turn the child they built and nurtured over to someone else that promised to take care and remain the same .
Never ! The world changes every day
Never ! The world changes every day
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I remember when Mr. Beeman Retired a while back, seemed like all his High end Products retired as well. I hope this won't be the direction of Pyramid.
I Hate changes, never seems to benefit the people.
I Hate changes, never seems to benefit the people.
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Just as an FYI from the inside....this happened YEARS ago. Though I don't see a time stamp on the link, if memory serves this was 2017/18.
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ThomasT
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I had a problem with my new FX Crown MK II that I purchased from them over a week ago and called their "customer service. The female that answered the phone seemed upset that I called with a problem, asked me several questions and put me on hold, came back and told me that it was not their problem to deal with and I should call FX and HUNG UP on me. Yes, when I started to question her about it not being "their" problem, she actually hung up on me.
ThomasT
ThomasT
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That’s completely unacceptable. They better get on the ball or they’re going to start steadily losing customers.
I just got a pellet shipment from them that was horribly packed, every other package of pellets were packed perfectly over the past years.
Sounds like being acquired or whatever it’s called is not helping them with customer relationships.
Hopefully you can get the issue straightened out ThomasT
I just got a pellet shipment from them that was horribly packed, every other package of pellets were packed perfectly over the past years.
Sounds like being acquired or whatever it’s called is not helping them with customer relationships.
Hopefully you can get the issue straightened out ThomasT
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This is old news, Gen Cap came on the scene in Nov. 2016….here is a link to a dated press release:
gencapamerica.com
Gen Cap America Partners with Pyramyd Air – Gen Cap America
gencapamerica.com Upvote 0