News on Cases = Pelican acquires Storm

[Brian McVickers]

BIG NEWS! Hot off the presses.

Pelican Products, the maker of Pelican Cases, has acquired Hardigg Industries, the maker of Storm Cases.

--From the Pelican Web site: http://pelican.com/synergy/

"To our Customers, Employees and Vendors:

Happy New Year. I’m very proud to announce that in a deal approximating $200 million, supported by our private equity group, Behrman Capital, Pelican Products has acquired Hardigg Industries, the Massachusetts based roto molding case company.

While the two companies have had a historic rivalry, on detailed review there is a much bigger synergy with Hardigg and Pelican joining forces. In fact, when you consider Pelican’s capabilities of automated injection molding, and contrast that with Hardigg’s roto molding and customization skills, it’s clear that our strengths are extremely complementary. An example of the synergy is in our selling models. Pelican has built a diverse base of distribution in commercial and industrial markets, while Hardigg has deep selling channels within the military. Clearly we can benefit by leveraging each other’s sales and distribution channels. At the same time, Pelican has mastered automated manufacturing to better support customer requirements around the world. Many of these processes will be leveraged across Hardigg’s manufacturing operations.

So what will the combined entity look like? It will employ over 1,500 people in 23 offices and 6 manufacturing facilities in 12 countries around the world. It will truly be the best source for supporting any customer’s protective case needs. In addition, we will build new advanced lighting products, so whether you’re a case or lighting customer, we will have the largest capability in the world to support your requirements. Because we are well capitalized for future growth, in just a few short years Pelican will drive to become a half a billion dollar business.

Product innovation will accelerate in this new enterprise, with more than 60 engineers developing products that will fit our new unified strategic plan, deploying new technologies and designs for the future growth of all involved. This will represent a win for our core product offering: a permanent, more efficient and effective packaging solution with sustainable advantages over corrugated boxes, wood crates, aluminum cases and other inferior containers.

I look forward to meeting and working with you all to make this new enterprise a huge success for everyone involved.

Respectfully,
Lyndon Faulkner
President and CEO
Pelican Products, Inc."

Brian

[absolute]

That looks very promising!!
As a happy customer of both companies... I'm excited to see what they have in store!! :-)

Thanks for the info!

Nick

[Scott Brady]

Yes, big news indeed.

[goodtimes]

yea....but why, just WHY did they have to use the "s" word?!?!?

There is only one way to ensure that businesses will fail after a merger or buy out.....use of the "s" word in the press release.

I'll be sorry to see them go.

:(

[cruiseroutfit]

Very neat. I had no clue Pelican was such a big corporation, combine the two and wow. Good on them! I'd imagine this will open new doors for product development and distribution channels :cool:

[calamaridog]

Am I the only one who doesn't see this as a good thing?

[cruiseroutfit]

Am I the only one who doesn't see this as a good thing?

I can see some of the worry, but there are other companies that I believe will fill the voids if/when they exist. There were two "Pelican" style case companies at a recent gun show here in Salt Lake City, on of which was import, the other of which was made in I beleive Colorado (I should have their info somewhere). I think its a growing market and we'll see new things from the big and small alike.

[tdesanto]

I also don't see this as a good thing. I think strong competition between two really great products benefits the consumer. Both had their strengths and both were really great cases. It's possible that inovation will slow down now that Pelican has bought their main competitor.

[calamaridog]

I also don't see this as a good thing. I think strong competition between two really great products benefits the consumer. Both had their strengths and both were really great cases. It's possible that inovation will slow down now that Pelican has bought their main competitor.

Thanks for articulating what I was thinking.

[RoundOut]

I also don't see this as a good thing. I think strong competition between two really great products benefits the consumer. Both had their strengths and both were really great cases. It's possible that inovation will slow down now that Pelican has bought their main competitor.

And prices, as if they are not high enough already, will surely increase with reduced competition.

.

[chuck45]

I also don't see this as a good thing. I think strong competition between two really great products benefits the consumer. Both had their strengths and both were really great cases. It's possible that inovation will slow down now that Pelican has bought their main competitor.

Maybe in these tough economic times one stronger company is better than two smaller weaker companies. Perhaps both companies looked at this as the best way to insure their survival.

[Overland Hadley]

I also don't see this as a good thing. I think strong competition between two really great products benefits the consumer. Both had their strengths and both were really great cases. It's possible that inovation will slow down now that Pelican has bought their main competitor.

x2

Competition is a good thing. Think evolution.


From Wikipedia

Competition may give incentives for self-improvement. For example, if two watchmakers are competing for business, they will hopefully lower their prices and improve their products to increase sales. If birds compete for a limited water supply during a drought, the more suited birds will survive to reproduce and improve the population.

[haven]

I predict that within 6 months Storm's employees will be laid off,
and the Storm name will be applied to existing Pelican products.

[soonenough]

I predict that within 6 months Storm's employees will be laid off,
and the Storm name will be applied to existing Pelican products.

I'd definitely have my resume up to date if I worked for either company. Heck, I'd have my resume up to date no matter what the way things are these days...

[762X39]

I was looking at Storm cases and Pelican cases when I went to replace my 30 year old tool box (custom built ATA approved like an Anvil case if they are still around) and I chose an Italian built HPRC. I feel that Pelican has been resting on its laurels way too long and find my HPRC to be much better built.I am sad to see Storm go but would have prefered Pelican to go instead.The Pro A/V division of our company sells a ton of cases to go with the high def cameras and related equipment that travel the world and we mostly use Kata cases (soft) from Israel and HPRC or another brand from Italy whose name escapes me tonight.For the film people on a budget we sell Underwater Kinetics cases. They are not that great but protect high end video gear as well as the Pelican cases for a lot less money.I guess Pelican has brand name appeal but the world has moved on since they came to town (I do have several Pelican cases to protect various pieces of gear but if they were to crap out I would replace them with HPRC cases as required).Just my opinion though.

[Brian McVickers]

As of right now, from what I understand, there will still be two brand names, Pelican and Storm. Although they have similar products, believe it or not they only have about 10% product overlap. Both brands have developed their own specialty markets such as Hardigg into the military sector.


Brian

[John E]

I work in the film industry, in the home of the film industry, Southern California and Pelican brand cases are pretty much the standard nowadays. Lots of the "Anvil" type of cases still being made and used too but I see more Pelican's than any other brand on sets. Particularly for rental equipment. Very rarely see any soft sided cases being used as they just don't hold up to being tossed around by P.A.'s and other crew members.

As for Pelican being behind the times, I'm curious as to where people think that the hard shell equipment case industry is gonna go, I mean seriously, what kind of innovations are really left? Other than making them lighter without sacrificing the protection which seems like a pretty tall order given that everyone also wants them to be as inexpensive as possible which rules out stuff like carbon fiber. They're already water-proof, dust-proof, come in dozens of shapes and sizes and with a lifetime warranty, what more do you want?

As for pricing, the Pelican's I use and buy are a great value right now, can't seem them getting much cheaper even though I know that the mark up is tremendous on them. Given the value of some of the stuff put into them, it's pretty damned cheap insurance.

Haven't used any of the Hardigg cases, frankly I've never had a need that a Pelican case couldn't fill. And no, I don't get paid to say that.

I even use one of their flashlights...;^) Great light for the money, takes a beating and just keeps working.