Taylor and -- gasp! -- Fender

[california91207]

Google NAMM + Taylor and here's an example of what is showing up this morning:

Fender just announced a partnership with Taylor to distribute Taylor guitars in Europe, Africa, and most of the Middle East. Will we see another acquisition of a major guitar brand by Fender in 2008? And would it start with a 'T'?

Oh yeah, and Taylor is also featuring solid bodies at NAMM....

[california91207]

Here's some of the press releae:

SCOTTSDALE, Ariz. (Jan. 15, 2008) -- Taylor Guitars and Fender Musical Instruments Corporation today announced a strategic relationship between the two companies which will now work together to raise Taylor’s brand awareness throughout Europe. Fender Europe’s new Taylor Division will be the exclusive distributor for Taylor guitars in Europe, Africa, and most of the Middle East , and is expected to commence distribution operations on July 1, 2008.

“The world has become more and more flat, with cultural, currency and trade barriers becoming less and less. With the advent of the European Union, the adoption of a common currency and the free movement of goods across borders, a huge opportunity has been created to do more commerce at a higher level,” said Kurt Listug, co-founder and CEO of Taylor Guitars. “Fender has proven the concept of an American guitar and amp company successfully exporting their business model to Europe, and achieving much higher sales and brand awareness as a result.”

Listug said he approached Fender with the idea of distributing Taylor guitars in Europe , after learning how successful Fender had been with their overseas sales model. “Bill (Mendello) shared his experiences in creating Fender Europe with me a few years ago, and invited me to see their European operations first hand. I spent a week visiting their warehouse, sales offices, and even their Düsseldorf custom shop showroom. I was blown away by their incredible success in Europe, and the huge potential of their sales model for Taylor .”

“We are extremely pleased to be working closely with Bob Taylor and Kurt Listug, two admired industry leaders who have built Taylor into a premier guitar brand,” said Bill Mendello , Chairman and CEO of Fender Musical Instruments Corp. “By providing our expertise in sales, marketing, warehousing and logistics, we look forward to enhancing their success throughout the European market.”

Taylor evaluated creating its own European distribution arm versus partnering with Fender. “We considered doing it ourselves, but distribution is expensive and requires specialized expertise. Having the opportunity to work with Fender, leveraging their resources and experience into much higher European sales for Taylor , is the best decision.”

[MattJohnPaul]

Corporate Takeover in the making???

[california91207]

Be glad you have "Pre-Fender" Taylors, we all know what they did to Guild!

[stringbound]

That´s yesterdays news...

http://www.acousticguitarforum.com/f...d.php?t=116022

[california91207]

I was looking for something here before posting, must have missed it!

[Jim]

Every time I learn more about Kurt Listug my respect for him grows. Even though his name is not on the headstock, Taylor is equally co-owned by Kurt and Bob. I am sure they make all of their major business decisions after talking things over, but Kurt has really led the company into its ever increasing success as a business. His title is Chief Executive Officer while Bob's is President. In general, CEO is the higher ranking of the two titles in a corporation with a CEO making the overall strategy and business decisions while a President is in charge of daily operations and reports to the CEO, but I am sure they just work as equal partners with Kurt having the lead on building the company while Bob has the lead on building the product.

I can't imagine that either Kurt or Bob need the money to the point where they would sell their company to FMIC, though a company the size of FMIC could certainly make anyone pause and think given the amount of cash they could throw at someone. There is no public information available on Taylor Guitars since it is a privately owned company but I have to believe they are doing very well financially given the price of the raw materials versus the price they sell their finished product for, even taking into account manufacturing costs (payroll, buildings, energy, etc.). It is interesting to wonder what might happen to Taylor when the day comes when Kurt and Bob decide to retire or one or both of them pass away. That came close to happening a few years ago when Kurt had a heart problem.

[california91207]

Originally Posted by Jim

I can't imagine that either Kurt or Bob need the money to the point where they would sell their company to FMIC, though a company the size of FMIC could certainly make anyone pause and think given the amount of cash they could throw at someone. There is no public information available on Taylor Guitars since it is a privately owned company but I have to believe they are doing very well financially given the price of the raw materials versus the price they sell their finished product for, even taking into account manufacturing costs (payroll, buildings, energy, etc.). It is interesting to wonder what might happen to Taylor when the day comes when Kurt and Bob decide to retire or one or both of them pass away. That came close to happening a few years ago when Kurt had a heart problem.

It is not a matter of needing the money, it is good business sense. If you are thinking of selling a company, the best time is when you are riding high and can be bought at a premium; not when the company needs to be "rescued" for pennies on the dollar.

[DenverSteve]

Great gossip. Maybe they'll just buy out Fender and bring the entire line up in quality. Hmmmmmmmmmmmm.

[KMHaynes]

The agreement is for DISTRIBUTION of guitars, not PRODUCTION of guitars. That's all.

[california91207]

Originally Posted by KMHaynes

The agreement is for DISTRIBUTION of guitars, not PRODUCTION of guitars. That's all.

Yeah... think of it as a first date.

[reags]

http://www.acousticguitarforum.com/f...d.php?t=116022