3M Buys Meguiar's

[Rob Tomlin]

Originally Posted by David Fermani

I see it as positive move for both consumers and both companies. I think the merger could stimulate some great new products to market considering 2 of the most resourceful detail chemical companies will potentially be working together at R & D. This could also help lean out their product lines and make them more efficient as well. As far as market share, 3M already has most of the body shop market (their main focus) where Meg's MS is small. As far as retail/professional detail sector, it's the opposite. Merging both will create more recognition and create a win-win for both.

I think you are a very optimistic person!

It's rare to have a big merger like this result in more R&D instead of less.

Instead of these two companies trying to outdo each other for competitive advantage, 3M just goes out and buys the competition so they don't have to worry about them competing any more, both in terms of R&D and pricing.

[Bunky]

Originally Posted by DavidB

I agree with you differently.

In terms of retail market share, Clorox and Turtle Wax have dominated sales. If the 3M/Meguiar's deal bumps them to the #1 spot and we see fewer "Armor All" quality products at retail, I'm all for it.

Unless someone actually grows share from someone else, nothing has changed since the Armor All guys are getting the same revenue. 3M now has the combined revenue. Do we know the business condition of the 3M line? I assume Meg's was profitable but definitely worth their market share in any event.

I assume in the near future 3M car products will get a lot of discussion time at MOL. 3M did not get significant talk time here and even less elsewhere. The 3M users are not as active posters (yes, I see the UF discussions).

[Furyous]

IMHO, there's a lot of misinformation in this post...

First, Meguiar's is number one in consumer car care products in the US. Without a doubt. Armor All is number two and Turtle Wax comes in in third. 3M has never been able to break a 5% market share, while Meguiar's enjoyed a 20%+ market share.

Second. Meguiar's will remain a separate business entity and will continue to compete directly with 3M. Berry will remain on board as president and CEO and will continue to lead the company.

The best thing about this merger is it will free up some resources and WILL improve R&D and may bring about a more complete line for both companies.

The last thing 3M wants is to kill it's consumer line now that it has acquired the #1 consumer brand in the US. The idea is to keep it going and make it stronger.

Remember, advertising does not make a good product. Results speak for themselves. Look at the little companies out there. It's not their advertising that sells their products.

As far as I am concerned, there is no need to panic. I think everyone will come out better on the other end of this deal.

[Holden_C04]

Originally Posted by Furyous

IMHO, there's a lot of misinformation in this post...

First, Meguiar's is number one in consumer car care products in the US. Without a doubt. Armor All is number two and Turtle Wax comes in in third. 3M has never been able to break a 5% market share, while Meguiar's enjoyed a 20%+ market share.

Second. Meguiar's will remain a separate business entity and will continue to compete directly with 3M. Berry will remain on board as president and CEO and will continue to lead the company.

The best thing about this merger is it will free up some resources and WILL improve R&D and may bring about a more complete line for both companies.

The last thing 3M wants is to kill it's consumer line now that it has acquired the #1 consumer brand in the US. The idea is to keep it going and make it stronger.

Remember, advertising does not make a good product. Results speak for themselves. Look at the little companies out there. It's not their advertising that sells their products.

As far as I am concerned, there is no need to panic. I think everyone will come out better on the other end of this deal.

I don't examine business charts and end-of-year sales reports of detailing businesses, but even I can see some inaccuracies in your post. 3M definitely carries much higher than 5% of the detailing market (think of all the body shops that use this stuff).

[Lumadar]

Originally Posted by Holden_C04

I don't examine business charts and end-of-year sales reports of detailing businesses, but even I can see some inaccuracies in your post. 3M definitely carries much higher than 5% of the detailing market (think of all the body shops that use this stuff).

I think he is referring only to the consumer market, NOT the body shops. Could be wrong though...

[Holden_C04]

Originally Posted by Lumadar

I think he is referring only to the consumer market, NOT the body shops. Could be wrong though...

Fair enough.

[Bunky]

Originally Posted by Furyous

The last thing 3M wants is to kill it's consumer line now that it has acquired the #1 consumer brand in the US. The idea is to keep it going and make it stronger.

That is often the case but we shall see. We hope fo the best. In the end it will get determined by the beancounters at 3M manage them.

I would like to see market share from an industry source. I am not disputing the market share numbers but just want to see who is generating the data, size of market in #, etc.

[wfedwar]

They've obviously been working together on consumer products for some time. Nobody ever noticed the similarity between 3M's 39007, -09, -26, -42, etc, and Meg's #7, 9, 26, 42, etc?

[Rob Tomlin]

Originally Posted by Bunky

That is often the case but we shall see. We hope fo the best. In the end it will get determined by the beancounters at 3M manage them.

Exactly. Time will tell

[Furyous]

Originally Posted by Lumadar

I think he is referring only to the consumer market, NOT the body shops. Could be wrong though...

Spot on! There are two distinct sides to the business. Consumer and Body Shop. Meguiar's was very attractive to 3M because they now have a heavy hand in both the markets!

[salty]

What products are they going to drop or relabel. Sandpaper comes to mind.

[Furyous]

That all remains to be seen. Those details really haven't come down the pipeline yet. The only thing that is clear is that Meguiar's will continue to function as a separate entity, competing with 3M and with Berry as the President and CEO.