DW aquires Gretsch and Latin Percussion...

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Bernhard

Founder Drummerworld
Staff member
Interesting News: (Press Release January 6 2015 - DW Drums)

Drum Workshop, Inc. and Fender Musical Instruments have finalized an asset sale agreement to purchase owned and licensed percussion brands including Latin Percussion®, Toca® Percussion, Gretsch® Drums, Gibraltar Hardware and KAT® Percussion from Fender’s KMC subsidiary. Ovation® Guitars, and exclusive U.S. distribution rights for Sabian® Cymbals are also included in the transaction.

“This is an amazing opportunity to extend our passion and commitment for the art of drumming,” said Chris Lombardi, President and CEO of Drum Workshop, Inc. We’re excited to welcome these legendary American brands to the DW family.”

Founded in 1972, the family owned and operated manufacturing company also boasts the award-winning DW Drums brand, as well as Pacific Drums and Percussion® (PDP). Details of the purchase are forthcoming, however it has been announced that DW Drums manufacturing operations will remain in California, Gretsch drum production will continue in South Carolina and LP’s offices will stay in New Jersey.

"We are extremely proud of our team's effort to nurture and grow each of the individual brands and are enthusiastic for their future,” said FMIC’s interim CEO and board member Scott Gilbertson. “We recognize the strategic opportunity for DW and are confident that they will be champions of the brands moving forward."

“It promises to be a very exciting year”, continued Lombardi. My father (DW Founder, Don Lombardi) and I are whole-heartedly dedicated to these already well-established brands and see a bright future ahead for the entire drum industry.”
 

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Duck Tape

Platinum Member
it's slightly amusing because this forum is so anti-dw and pro-gretsch.

I guess that not much at gretsch will change, the parent company will just have a bit more market share.
 

Bernhard

Founder Drummerworld
Staff member
it's slightly amusing because this forum is so anti-dw and pro-gretsch.

I guess that not much at gretsch will change, the parent company will just have a bit more market share.
DW (Drummerworld) Forum is not anti DW (DrumWorkshop)
contrary: i have personal best relations, several sets.....very happy - lol

Bernhard
 

mikel

Platinum Member
Oh no, another great marque going the same way as all the others absorbed by the giants. No I am not keen on DW. Over priced, over hyped and over here.
 

STXBob

Gold Member
DW (Drummerworld) Forum is not anti DW (DrumWorkshop)
contrary: i have personal best relations, several sets.....very happy - lol

Bernhard
You might not be anti-DW. The official Drummerworld policy is of course to be pro-drumming and to avoid being anti-anything, which is both fair and wise. However, any fool can plainly see that there exists such a significant amount of Drummerworld users who are vocally anti-DW to make Dre25's statement true. It would have been better if he said, "This forum's users are so anti-DW and pro-Gretsch." That is a true statement.

That's not a judgement on anyone. Them's the facts. ;-)
 

Andy

Administrator
Staff member
I guess that not much at gretsch will change, the parent company will just have a bit more market share.
As I pointed out in the other thread, I'm sure the DW management are smart enough to realise almost all the value in Gretsch is legacy brand equity. That's the stuff you can't buy, nor easily replicate. Any changes are most likely in the supply chain where DW can leverage higher volumes with Asian parts suppliers, & possibly something on shell supply further down the line, although I would expect Keller to remain the supplier for some time at least.

Any "fiddling" remotely in the direction of brand merging would be financially suicidal IMO. Why cut down on two distinct revenue streams when there's absolutely no benefit to either brand? Parts sourcing consolidation however, that's a win win without any negative consumer optics, especially if you roll Gibraltar into the mix too.
 

jornthedrummer

Silver Member
I am one of those thats not so keen on the DW sound. Having said that, DW make beautiful drums and is a very innovative company. I would much rather have Gretsch owned by them than some investment bank or a Taiwanese or Chinese company.
 

StaggerLee

Silver Member
im also in the park of dw kits look utterly stunning then the sound lets them down. Owned a collectors and never again and played on plenty others. Il also be alone in this:
Im not TOO scared of DW owning them, if they leave them alone and have them as an asset fine. But i think if they do interfere as they likely now have to approve new lines of kits etc, they are now going to push for gretsch to be a kind of "vintage replica company" playing on there heritage and utter mastery of making those style kits and sounds. Who knows, new classic, renown and catalina maples may disappear and the new midline akin to ludwig club dates, and a new renown with the broadkaster vintage hardware they just bought out. I for one would rather like that.
 

mikel

Platinum Member
I am one of those thats not so keen on the DW sound. Having said that, DW make beautiful drums and is a very innovative company. I would much rather have Gretsch owned by them than some investment bank or a Taiwanese or Chinese company.


I would much rather have them owned by someone who is in love with drumming and cares about the brand rather than just adding another buck to the bottom line. Me, perhaps???
 

markiet1966

Senior Member
[/B]

I would much rather have them owned by someone who is in love with drumming and cares about the brand rather than just adding another buck to the bottom line.
To be fair, that just about describes DW, they are a passionate company owned and run by drummers.

Mark
 

Stitch Kaboodle

Senior Member
My DW kit is 15 years old and still sounds great. Got the original hardware too. They are (or were) extremely well built.

I've never been anti-any brand really.
 

DrumEatDrum

Platinum Member
Wow, that's huge.

KMS has been one of the largest music distribution companies for years.
Fender, who bought KMS some years back, had been trying to go public for some time, although they've struggled due to Guitar Center owning them so much money and being their single largest client.

Some in the financial world have been critical of Fender buying KMS.

I wonder if Fender/KMS felt this sale would increase their ability to go public by reducing their overall size. And now all sales of these products to GC will be off their books as a sale to single client.

I'm rather surprised Drum Workshop could come up with the money for such a purchase. DW is a fraction of the size of KMS.

And I'm very surprised Gibraltar Hardware is part of the deal, as Gibraltar Hardware really is not it's own company, it's always just merely been a brand name for Kaman/KMS hardware.
 

DrumEatDrum

Platinum Member
As I pointed out in the other thread, I'm sure the DW management are smart enough to realise almost all the value in Gretsch is legacy brand equity. That's the stuff you can't buy, nor easily replicate. Any changes are most likely in the supply chain where DW can leverage higher volumes with Asian parts suppliers, & possibly something on shell supply further down the line,
.

.... Parts sourcing consolidation however, that's a win win without any negative consumer optics, especially if you roll Gibraltar into the mix too.
The other way around though.

KMS was the largest music distribution company. They had way more leverage than little ole' Drum Workshop. If anything, DW is buying that leverage (or perhaps that's what you meant).



I am one of those thats not so keen on the DW sound. Having said that, DW make beautiful drums and is a very innovative company. I would much rather have Gretsch owned by them than some investment bank or a Taiwanese or Chinese company.
Which is where Gretsch has been for some time.

Gretsch hasn't been Gretsch in some time.

Everything not USA-Custom have never been made by Gretsch, they've been made by KMS overseas under a license/distribution agreement.

And then a few years ago, Gretsch sold the USA side to KMS too, with Fred Gretsch retaining the name only, so they could still market it a family owned company.

And KMS is owned by Fender, of which a large percentage is owned by an investment bank which has been trying to take the company public for years.
 

WhoIsTony?

Member
Which is where Gretsch has been for some time.

Gretsch hasn't been Gretsch in some time.

Everything not USA-Custom have never been made by Gretsch, they've been made by KMS overseas under a license/distribution agreement.

And then a few years ago, Gretsch sold the USA side to KMS too, with Fred Gretsch retaining the name only, so they could still market it a family owned company.

And KMS is owned by Fender, of which a large percentage is owned by an investment bank which has been trying to take the company public for years.
but USA Custom and Brooklyn are made here in Ridgeland South Carolina by Gretsch employees .... Paul Cooper and his team of few
 

Andy

Administrator
Staff member
If anything, DW is buying that leverage (or perhaps that's what you meant).
Partially yes Ian. Take the best elements from both supply chains. It's all within a fairly tight group of Asian factories anyhow, but grouping always brings benefits.
 

DrumEatDrum

Platinum Member
but USA Custom and Brooklyn are made here in Ridgeland South Carolina by Gretsch employees .... Paul Cooper and his team of few
True, but Gretsch sold the factory equipment and rights to American made drums to KMS in 2007.


Look at http://www.gretschdrums.com/
And go to the bottom, where it says:
© 2014 KMC Music, Inc.
Click and you go to:
http://www.kmcmusicorp.com/

http://www.drums-guru.com/Gretsch-drums.html#axzz2r3ZlBqgl
In 2000, Gretsch drums became more well known after signing a distribution deal with Kaman Music Corporation.

Kaman bought most of Gretsch's drum making equipment and the rights to manufacture their drums in February, 2007. This takes place now in the Ridgeland, South Carolina plant. The same employees have worked at this plant for the last 10 to 15 years and adopted the Gretsch ways of drum making.

http://drumdetails.com/gretsch-drums/
I
n 2000 Gretsch signed a distribution deal with Kaman resulting in more global visibility
In 2007 Kaman purchased manufacturing rights and equipment to make Gretsch drums


http://www.squidoo.com/gretsch-drums
In February 2007, Kaman purchased the right to manufacture Gretsch USA Custom and Signature drums. They also purchased the majority of the equipment used to make Gretsch drums. They now lease space from Fred Gretsch in his Ridgeland building. The drums are being made by the same people that have worked there for the last 10-15 years.
Fender purchased Kaman in 2008 so now they own the right to manufacture both Gretsch guitars and drums.
Today, Gretsch's top of the line drums (USA Custom & Signature Series) are manufactured in Ridgeland, South Carolina. While other less expensive lines are imported by Kaman from Asian-based drum plants.
 

WhoIsTony?

Member
True, but Gretsch sold the factory equipment and rights to American made drums to KMS in 2007.


Look at http://www.gretschdrums.com/
And go to the bottom, where it says:

Click and you go to:
http://www.kmcmusicorp.com/

http://www.drums-guru.com/Gretsch-drums.html#axzz2r3ZlBqgl



http://drumdetails.com/gretsch-drums/
I



http://www.squidoo.com/gretsch-drums
this is slightly odd because if you go to the plant in SC you will see much of the same equipment and many of the machines that were used in the Brooklyn factory still being used

KMS now owns those machines?
 

Yoshinya

Senior Member
I posted this in the other thread, but it's worth mentioning:

I keep thinking about DW's failures in companies its acquired in the past, and subsequently sold or folded.

Like when Johnny Rabb's stick brand was sold to DW, then re-branded as 3 Drumsticks. 3 Drumsticks didn't do well, and Johnny Rabb said that DW allowed him to buy the company back.

Remember when they bought Gon Bops? They did a marketing blitz for a brief period, seemed to not know what to do with them, then sold the company off to Sabian.

DW purchased Collarlock hardware (who made racks and rack-type add-ons for existing cymbal stands) in either the late 80s or early 90s. Early marketing lauded Collarlock as the rack and premium hardware solution for DW players until about the mid 1990s. By mid-to-late 90s? They turned it into a precursor for what would eventually become Pacific/PDP, branding lots of cheap Taiwanese/Chinese drums with the Collarlock name, before completely killing the brand off entirely.

Thankfully, Gretsch and LP are pretty strong brands, that I don't think are going anywhere. I get this feeling that LP and Toca are going to end up being consolidated into one company, since there is so much overlap in the products sold by both.

Anyone else catch this little blip at the bottom of the statement?:

"Other brands named in the acquisition are Percussion Plus®, CB® Drums and CB® Educational and Adamas® Strings."

I'll venture a guess that Percussion Plus/CB is going to be phased out in favor of DW's own Pacific/PDP brand filling that low-cost market (with honestly better-quality product anyway).
 
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