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I talked to the guys at Degelman on Tuesday and it was told to me that Paul's siblings wanted out. So the company needed a cash injection to buy out family share holders. This should give them money on product development going forward.
 

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So, in a similar example - taking on debt for share buy back. And so basically how all the big corporations are running these days. Because, when you aren't turning a profit or making a reasonable return on shares the new way of doing things is to use debt to service shares.
I can understand Degelman family wanting to get some equity out but there used to be a time that if you had to take out a loan to do that, well maybe it just was not a good time for such a thing. In fact, only when turning a profit could such a thing be done.
Welcome to the new way of doing things. Use debt to pay out equity. Time will tell if we are all sitting in a bar sometime 15 years down the road and wondering how certain companies got into trouble and someone mentions that using debt to address shares may not have been a financially sound approach.
However building a new head office and big new buildings because debt is cheap is considered common sense these days too. After all, major assets are always going to go higher so any money spent now on a building of any kind is guaranteed to look good on paper 10 years from now. Of course it is just 1s and 0s on screen and really doesn't mean much but don't let that stop anyone.
I sure hope Degelmans do not get into trouble but if you want something to watch there is another one.
 

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Word on the street is that Riteway has bought Degelman and possibly Summers as well.

I know I suggested in post #9 of this thread that more would follow, but I didn't think the consolidation would happen so fast. One has to wonder how many companies are scrambling behind the scenes to get out while the getting is good...:unsure:
 

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There was rumours last year was Brandt bought Degelman. I find the latest rumour hard to believe. I guess time will tell.
 

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There was rumours last year was Brandt bought Degelman. I find the latest rumour hard to believe. I guess time will tell.
Yeah I got this from a couple of sources now. Hopefully I'm not spreading rumors, not my intention.
 

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Not sure if it was this thread or twitter, someone said a family member wanted out of Degelman and they took on an investor to generate cash for that. Not sure how accurate that is also, but I would have thought there should be cash around a company like that ???
 

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If Ritway bought Degleman that would not be good for Degleman. There philosophy of designing equipment is so opposite. Degleman always over designed stuff so it lasted long which gave them a good name in the AG business.
 

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Degelman is listed on golden opportunity fund as being in their portfolio
I talked to Degelman at the Crop Production show, they told me the same thing. It could be that the Golden Opportunity Fund flipped already at a good profit. I’m not sure what Riteway has in their machinery line up, but they don’t seem to me that they would have been profitable to be able to afford a good company like Degelman.
 

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I was surprised to see that Riteway still exists. Les turned that company into Sweeprite which now has an eastern Canada head office, according to their website. It also appears to be a public company so its hard to say how much money could be there now.
 

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Has anybody heard anything more about Morris Industries? A few of their drills went cheap this spring in auctions, rightly so with the uncertainty but now i see them promoting their new high speed quantum?
 

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Couple weeks ago my Kubota sales man informed me that they had purchased Morris, haven’t heard anything to confirm that
 

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The kid who lives across the street is a welder at Morris. I talked to him a couple weeks ago. He said they still have a skeleton welding crew on day shift - I think he said 8 production welders - and they are building some units. He said there were lots of rumours about someone being interested in buying them but so far they had been told nothing.
 
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