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MARINA
DOCK AGE, NOVEMBER 2002 |
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ShoreMaster
unites with GalvaFoam Marine Industries |
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Q & A:
A major marina industry merger prompted an interview with ShoreMaster
President Erik Ahlgren: |
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| Q: How did the merger between ShoreMaster and Galva-Foam come about? | |
A: At
ShoreMaster, we've been seeking companies that would make good
potential partners. And Galva-Foam turned out to be a great
fit. ShoreMaster and Galva-Foam are in the same industry, and
both
sell high quality products, but there is little overlap in
our sales. ShoreMaster builds standing boatlifts designed for
the
northern tier of the United States, while Galva-Foam builds
floating boatlifts for the South. ShoreMaster's marina systems
are constructed
with an aluminum frame or a concrete pontoon construction,
Galva-Foam builds galvanized steel docks, primarily with roofs. While
ShoreMaster has never developed an expertise with roofed
docks, |
 ShoreMaster President Erik Ahlgren |
|
that is a staple of the Galva-Foam system. Similarly, Galva-Foam has been looking for a good saltwater system and has experimented with some concrete wave attenuators, and ShoreMaster comes with great products that will fit those niches.
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Q: How are the marketing and management of the joint company going to be handled? |
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A: We're going to be careful to not lose the market equity established by both companies. We plan to join our sales forces and as much of our administration as possible. There will be little change at the production facilities, since they focus on creating different products.
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Q: Otter Tail Corporation is the parent company of ShoreMaster. How does Otter Tail fit into this structure? |
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A: Otter Tail's goal is to get involved with companies that have proven track records of growth and profitability, and then provide the capital and services to help them continue growing. ShoreMaster has experienced excellent operational growth, doubling revenues in the last five years. We became part of Otter Tail Corporation in May 2002. Through Otter Tail, we were able to complete the Galva-Foam acquisition, but our ongoing management and decision-making is done on the operating company level. Otter Tail Corporation is a publicly traded company with diverse interests across the utility, health technology, and manufacturing industries, among others.
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Q: What are your goals for the future? |
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A: Our goal is to become the premier waterfront equipment company in the United States. We want our company to represent innovation and quality that rival the best companies anywhere. The merger is a big step toward the realization of our goal, but we plan on continuing to develop new products inside the company and keep looking outside for companies that fit our vision. Currently, through ShoreMaster and Galva-Foam, we have removable standing boatlifts and floating boatlifts. We are interested in developing or acquiring a pile-mounted boatlift company, which would expand our presence in the coastal areas. In the marina business, we are looking at strengthening our presence in the coastal areas of the Southeast and Southwest. We would also be interested in adding products used by marina owners, such as a drystack business. Other opportunities include the waterfront recreation side of the business. Currently we offer the Hydro-Bike, a sit-on-top kayak, and a few other toys, so there is potential to grow that product line, as well. The common theme is waterfront products--the array of products that are used by people who own waterfront property.
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| Q: Are there any more acquisitions currently in the works? | |
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A: We are always looking for companies that fit our vision for the future, but we do not have anything to announce at this time.
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| Q: What do you see for the future of the marina industry? | |
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A: We believe that the waterfront business will remain strong for the foreseeable future. There will always be ups and downs, but the long-term health of the waterfront market is based on demographics. As the Baby Boom generation ages and moves toward retirement, the waterfront business will continue to remain strong, because people will be looking for recreation and places where they can enjoy their leisure. The strength of this market is demonstrated by the rising prices of waterfront property. Even in this current period of economic uncertainty, waterfront property has maintained value and, in most cases, continued to climb. In serving this market, we will continue to focus on quality and case of use. This is an area of shared commitment for the entire industry, from boat manufacturers to marina owner to equipment suppliers.
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Click
here for more info on GalvaFoam Steel Floating Docks >>
