Quote:
Originally Posted by Jon P. Nusbaum
I have some knowledge of 3m"s business practices. When they buy a companies, they have in the past brought them into their marketing group. Close out all indepentant distributors and market thru their own group. Bottom line, no more commercial sales thru automotive wholesale firms, and body shop supply shops. They like total control. There will be no wholesalers, they want all the money. They have done this time and time again.
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That could be totally true, but the terms of this deal stipulated that
Meguiar's is not to be changed in terms of how it is run. It was explicitly stated as a contingent factor in the deal.
3M also didn't buy
Meguiar's just to eliminate a competitor- they did it to strengthen their presence in the industry by broadening their horizons.
Meguiar's has successfully done what 3M has NOT- marketed and sold their products in MASSIVE quantities to the average consumer. 3M tends to cater to the industrial side of the industry in body shops, where as
Meguiar's thrives with the average car owner shopping at their local PBE stores.
Of course only time will tell, but I can see 3M leaving
Meguiar's mostly alone in this case.