Coleman Camper is Back, ...but not to Coleman

[BirdMan]

I believe this could be a great thing for all of us down the road as long as the trailers in the future are still made in the USA.  Fleetwood has been building them in Somerset, PA.  This deal in NOT between Fleetwood & Coleman.  This deal is between Fleetwood and Blackstreet Capital.

I am sure more will come public about this, but very interesting how each company talks about this deal.  Coleman says it is a "trademark licensing agreement".  If you go to //www.blackstreetcapital.com/Portfolio/index.asp, Backstreet Capital lists this deal as a "Control Buyout - Corporate Divestiture".

All of you probably know that back in 1989 Coleman Company, Inc sold the pop-up factory, patents, designs, inventory, etc. to Fleetwood and also licensed Fleetwood to use the Coleman name on the popup campers.  Although the campers still had the Coleman name on them, Coleman Camping Trailer Division's company name changed to Fleetwood Folding Trailers Inc.

The Coleman Company, Inc, one of the oldest American companies founded in 1900 was acquired in 2005 by Jarden Corporation out of Rye, NY.  Jarden also bought Pure Fishing in early 2007.

Jarden Corp. makes consumer products for inside and outside the home. They manufactures a diverse set of branded consumer products, including Sunbeam appliances, Coleman outdoor gear, and First Alert home safety products. It also makes Ball home canning products, Diamond matches and plastic cutlery, Crawford home storage products, Loew-Cornell artist supplies, and Bicycle playing cards.  It also makes plastic and zinc products for other companies and supplies copper-plated zinc penny blanks to the US Mint and the Royal Canadian Mint. It bought outdoor products maker K2 for about $1.2 billion in 2007.

Again the purchaser of this deal is Blackstreet Capital, a private equity fund focused on control buyouts of underperforming corporate orphans.  Buyout companies are normally after cash, real estate, assets, patents, brand names, ... all to be later torn apart and sold OR repackaged to sell to another company.   Maybe back to Jarden?  Maybe to someone in China?

[Used 2B PopUPTimes]

I had lunch with the Chairman of FTCA and the Operations mgr for Blackstreet today and had a chance to express some of the concerns that I've read on the forums. Unless they're just flat out lying to me I think they're "legit".

Yes, they specialize in buying corporate orphans and making them profitable again. (FFT was ready to die in the hands of Fleetwood.)  Blackstreet owns a variety of different companies in a variety of different industries including popcorn, cotton spinning and the company that prints the coupons on the back of your grocery receipts. All vary profitable US companies and no reason to sell them off, but everything has a price.

Their plans for Coleman are to make the company profitable again, rebuild customer confidence, and keep it going in the same factory that the Coleman namesake personally built which was part of the deal to get the name back.

I'm excited for them and the pop up industry.

[BirdMan]

Dave, I am really glad to hear that.  I have worked with many companies in the past like Blackstreet and I to am excited about there response.  I believe Coleman/Fleetwood popup's are the best build popup's out there and I hope they take the industry to a new level of quality & workmanship.

[coach]

Fleetwood does not build PUs, they haven't since the end of May '08.
There was a "Control Buyout - Corporate Divestiture" that took Fleetwood out of the picture! I believe FTCA/Blackstreet got 'em cheap, another part of the company bought all the real estate where the factory is located.


Blackstreet has every intention to get Coleman branded PUs (FTCA, Inc.) profitable, that's what they do. To make 'em attractive as possible for divesting in the future, realizing larger gains. It's called business

The only good news 'keep it going in the same factory that the Coleman namesake personally built which was part of the deal to get the name back.'

[Tim5055]

I believe FTCA/Blackstreet got 'em cheap, another part of the company bought all the real estate where the factory is located.

Actually, I think Blackstreet got the land for the folding trailer division.  The press releases regarding land sales talked about the Fleetwood California properties being sold.  Here is an example from AP:

AP
Fleetwood Enterprises to sell folding trailers division
Tuesday April 29, 11:32 am ET
Fleetwood Enterprises to sell folding trailers unit, looks to retire $100 million in notes

RIVERSIDE, Calif. (AP) -- Fleetwood Enterprises Inc. said Tuesday it will sell its folding trailers unit as it works to retire $100 million in convertible senior subordinated debentures.

The recreational vehicle maker said it will sell Somerset, Pa.-based Fleetwood Folding Trailers Inc. because it has not been a good fit with the rest of its operations. Fleetwood expects to use a large amount of the proceeds to partially pay down an existing real estate term loan.

In addition, Fleetwood said it closed on the $23.5 million sale of its Riverside, Calif.-based property. The company anticipates a $22 million gain from the sale, with $15 million likely to be recorded in the fourth quarter.

Fleetwood will now become a tenant of the corporate complex, leasing about 20 percent of the space. The property will still serve as Fleetwood's corporate headquarters and will house its recreational vehicle and housing group operations.

The company also sold a California supply manufacturing plant for proceeds of $10 million and plans to sell another one.

Fleetwood maintained its prior outlook for proceeds in a range of $40 million to $70 million from real estate sales between the start of the fiscal third quarter and Dec. 15.

Shares of Fleetwood Enterprises gained 13 cents, or 3.7 percent, to $3.64 in morning trading. Over the past year, the stock has traded in a range of $3.37 to $11.41.

[coach]

Actually, I was referring to the Somerest real estate, where the PU factory is.
There are two different agreements and 2 entities that Blackstreet setup. FTCA, Inc and some other name with real estate in it. (SEC filings 8-K has 3 agreements, IIRC, a prelim buyout agreement, then the two I'm referring to)Item 2.01.       Completion of Acquisition or Disposition of Assets.

I was not referring to the land out in California or any other deal, just the one between Blackstreet and FLE regarding the folding trailer division.

I hope that is clear.

[tlhdoc]

This deal in NOT between Fleetwood & Coleman. This deal is between Fleetwood and Blackstreet Capital.

I thought the deal was between Coleman/Jardan and Blackstreet Capital?

[mike4947]

Your both right. The SALE was between Fleetwood and Blackstreet and the LICENSE was between Coleman and Blackstreet.
Since the sale included all property, material and intangable, that included the rights to license, but not the license.

[tlhdoc]

Thanks Mike.