Zodiac Future

[Patch]

Does anyone know what we can expect to be the outcome of the Zodiac financial difficulties. I'm in Australia and we don't hear much or at least not much that turns out accurate anyway.

Keen for any info or even unsubstantiated rumor and gossip is fine also.😄

[spartacus]

Zodiac Marine and Pool was bought by a US private equity company - the Carlyle Group back in 2007 with loans. With a lot of these company purchases and investments there's also debt restructuring that goes hand in hand, and I think it's this that you're referring to if you've heard anything. Zodiac asked London courts to help with $1.36 billion of loans last year to avoid insolvency. More details here: Global Borrowers Avoid $70 Billion Debt Distress in U.K. Courts - Bloomberg Business

Why Zodiac is in difficulty beats me. They've got great products and charge a premium price, but I suppose any debt they've had has simply escalated with the global recession and has to be renegotiated.

More details here: http://www.wsj.com/articles/carlyle-...ion-1406830751

[Fenlander]

When I had problems with two new Zodiac SIBs in 2011 the dealer muttered about quality issues and cost cutting so I had a look at Zodiac as a company and read about that 2007 deal.

What surprised me was that about 75% of the Zodiac company sales were in its aircraft division (making seats, tanks etc). Under 20% of sales were the marine division and that included the spa pool division so the boats that, for me, define what a "Zodiac" is amount to perhaps 15% or less of company sales.

Seems to me a classic case for the boat division to be split off with a management buyout or similar. They could then have a commercial/top end range at premium prices and a leisure range which in truth would be best if they sourced from China with re-branding looking carefully at the success Honwave has had with this selling at keen prices.

For example I think the budget Zodiac Zoom is made in China yet Zodiac dealers want £1400-£1500 for a 3.5m alloy floor Zoom but a similar Honwave can be had for £900-£1000. Zodiac need to re-think this pricing.

[spartacus]

Think this picture sums up how Zodiac marine staff feel about the closure of factories in Saint Jean d’Illac and Rochefort. It seems production has since moved to Tunisia. More details here: Future of Zodiac and Avon RIBs in doubt - Motor Boat & Yachting

Hopefully the Avon side of the business which was acquired a few years back is secure. The MilPro and Solas liferafts are in a league of their own in terms of build and quality. I'm sure that will be the case.

[Powerboats]

C'è anche Rossignol tra i pretendenti a Zodiac - Il gommone

Translated:


By 25 June, the Court of Nanterre (France) should decide the fate of the Zodiac brand, in receivership since last April 2. According to rumors leaked in the French press, would be a dozen bids submitted at the Court to detect Zodiac. Obviously, at the time, they did not know the names, but according to rumors, the claimants would be of Tunisian nationality, Ukrainian, American, Chinese, Turkish and French. Among the latter there would also Rossignol (controlled by Scandinavian fund Altor Equity Partners that has taken over in 2013), a leader in the field of winter sports equipment.
The Rossignol plan provides for a reduction in costs amounted to 3.1 million euro, cutting 50 jobs (out of a total of 120 in France) and the transfer of the headquarters on the Atlantic coast, where the company already has a production site near Bordeaux (the current headquarters is located in Sevres, near Paris). Rossignol would plan to invest up to 20 million euro in R & D, marketing and new products to revive the brand, aiming at a balanced budget in 2017-2018.

[6950rpm]

Am hoping this is good news...

Zodiac RIBs back from the brink under new ownership - Motor Boat & Yachting

[Fenlander]

Via a dealer I'm in close contact with Zodiac at the moment over a warranty issue. Heard through the grapevine a French guy had bought the company and wanted to take it back to its quality reputation. Hope he does.

I understand he's taking a personal interest in my issue, keeping me informed and finding a prompt resolution as part of his "new broom" attitude. It's all a bit delayed at the moment as they're not running the factory as normal so any replacement boats/parts are a bit of a problem... until Sept I think.

That all sounds great but it will be so interesting to see if he can manage that with "non eastern" products while making a profit and maintaining build quality.

[office888]

Originally Posted by 6950rpm

Am hoping this is good news...

Zodiac RIBs back from the brink under new ownership - Motor Boat & Yachting

"“Sorry for those of you who could not purchase any Zodiac product this year – 2016 will be different.”
Read more at http://www.mby.com/news/zodiac-ribs-new-ownership-48045#zdxUDrRkui2ClqOq.99"

Wow, that sucks!

Their North America subsidiary was still moving product during that time period. A lot of it is produced domestically for this market though. The Yachtline Deluxe lineup is actually made right here in South Carolina.

[Fenlander]

Interesting article here from 18th Feb this year which refers to Zodiac outsourcing to China in 2013...

Zodiac Nautic rapatrie une partie de sa production de Chine, Actualité des PME

Which loosely translated by Google says...

The company Zodiac Nautic wants to take part in near Toulouse entire production of floats and 80% of the annexes boats - Julien FAURE / REA
PVC floats tire Zodiac Nautic will be made Ayguesvives near Toulouse and Tunisia. Recovery after filing for bankruptcy by industry, the company believes that this will allow it to respond more quickly to demand.

Pneumatic Zodiac Nautic resurface. Energetic Development who took over in July 2015 boat activity of the former Z bankruptcy in Marine relocates Chinese production in its plants in Ayguesvives (60 employees), near Toulouse, and Tunisia (188 employees) . Outsourced to China since 2013, the production of PVC floats Zodiac boats will return in March to Ayguesvives. In September, production floats Bombard its entry-brand will be repatriated in Tunisia and Ayguesvives. This will cause the creation of 4 to 8 Jobs in the factory of Haute-Garonne whose numbers had dropped from 130 to 60 employees in two years. Then in 2017, Nautic Zodiac Ayguesvives to reintroduce the "annexes" of the Cadet range from small embedded tires on board boats. The company wants to bring all production of floats and 80% of the annexes boats. Chinese outsourcing will continue only to supply Oceania. "We found a discredit to our markets related to Chinese manufacturing, customers are not satisfied with the level of quality," says Pascal Andriot, industrial director of the Zodiac Nautic. The operation will also respond more quickly to market demand "because you have to order goods four months in advance in China," says commercial director Xavier Caron.
Recovery by industrial

After passing the group Zodiac at the hands of US funds invest Carlyle and OpenGate Capital, the manufacturer has lost 500 jobs in ten years, before filing for bankruptcy in April 2015. It was taken over last summer by Dominique industrial Heber-Suffrin Pierre Bastid and Florent Battistella, who invested 7 million euros in 2015 and 3 million this year to boost production. Small inflatable boats are manufactured in Ayguesvives and semi-rigid models in the Tunisian factory. The manufacturer, which also owns a unit of 29 people in the US, its biggest market, will manufacture 7,000 to 8,000 boats this year. Leave sales better than expected and the group plans to return almost to the level of 2014. The expected turnover for 2016 is 32 million euros against 24 million in 2015. Zodiac Nautic, which employs around 300 employees, renew its range for the Paris Boat Show and will hire two people for this consultancy. Z Space Marine branch, dedicated to the manufacture of stratospheric balloons and insulation for satellites, has meanwhile been sold at Airstar group that has retained 25 of 27 jobs on the same site of Ayguesvives.

[jeffstevens763@g]

interesting the admission of Chinese quality issues!

[Fenlander]

Yes and that's likely down to Zodiac's lack of quality control over their Chinese supplier or the low target spec/price they agreed and not Chinese quality as such. If you ask Chinese suppliers to build quality and pay for that they will turn out a decent item.... if you ask them for a rock bottom price with corners cut they will do that also.

[jeffstevens763@g]

Originally Posted by Fenlander

Yes and that's likely down to Zodiac's lack of quality control over their Chinese supplier or the low target spec/price they agreed and not Chinese quality as such. If you ask Chinese suppliers to build quality and pay for that they will turn out a decent item.... if you ask them for a rock bottom price with corners cut they will do that also.

agreed and if it weren't for the cheap imports lots wouldn't get on the water be interesting to see if there's a cost rise?