DrumEatDrum
Platinum Member
My long theory:
Many years ago, there was Kaman Music, later called KMC.
KMC owned Gibraltar, Toca, Ovation Guitars, Hammer Guitar, and several smaller amp companies, they had bought out Latin Percussion and had distribution deals with just about every music manufacturer under the sun. It was, quite simply the largest single music company.
instrument-related company.
Oddly, Kaman's main business was aero space and helicopters. The music division was just a small side hobby.
In 2007, Kaman came to realize that a large aerospace company having a side gig as a music company as silly, and they sold all of KMC to Fender. Link: https://tucson.com/business/local/f...nstruments,approximately $117 million in cash.
Fender had hoped that combined with KMC, they could make themselves a huge company, and go public. However, it backfired when Wall Street rejected Fenders IPO in 2012. Fenders IPO was mostly rejected due to their cozy relationship with Guitar Center and GC's debt problems. However, some Wall Street analysts were also critical of the handling of the KMC purchase and thought Fender lacked focus.
www.nbcnews.com
Without the IPO money, Fender had cash problems. They had borrowed heavily to purchase KMC for $117 million in cash.
So Fender put KMC up for sale.
And then DW bought mucj of it (outside the complex distribution system) in 2015:
www.moderndrummer.com
spotlight.fender.com
The story sent shock waves through the music industry because it didn't make sense that a relatively small company like DW could afford such a huge conglomerate like KMC. The talk at NAMM that year was about how the heck did DW pull off such a large purchase? Rumors floated about how many bank loans the Lombardi family must have put together to make it happen.
DW then turned around and sold off as many of the non-percussion brands as it could, save Ovation Guitars. But DW didn't stop buying, as they bought the rest of Gretsch (part of it as already owned by KMC and included in the KMC purchase), and later, Slingerland.
So my guess is, the debt payments on the KMC, Gretch, and Slingerland purchases just got too much to handle. They never found a buyer for Ovation guitars. So my guess is Don and Chris started looking for alternative ways to refinance all their debts.
Roland USA main US headquarters is approximately a 2-hour drive from the DW factory in Oxnard.
So it made sense to approach Roland with an offer to sell shares in DW to pay off all their loans.
Of course, this is just theory and conjecture, as DW is a private company and does not have to disclose its books. But the fact that DW bought out a big chunk of the much larger KMC is public knowledge.
Many years ago, there was Kaman Music, later called KMC.
KMC owned Gibraltar, Toca, Ovation Guitars, Hammer Guitar, and several smaller amp companies, they had bought out Latin Percussion and had distribution deals with just about every music manufacturer under the sun. It was, quite simply the largest single music company.
instrument-related company.
Oddly, Kaman's main business was aero space and helicopters. The music division was just a small side hobby.
In 2007, Kaman came to realize that a large aerospace company having a side gig as a music company as silly, and they sold all of KMC to Fender. Link: https://tucson.com/business/local/f...nstruments,approximately $117 million in cash.
Fender had hoped that combined with KMC, they could make themselves a huge company, and go public. However, it backfired when Wall Street rejected Fenders IPO in 2012. Fenders IPO was mostly rejected due to their cozy relationship with Guitar Center and GC's debt problems. However, some Wall Street analysts were also critical of the handling of the KMC purchase and thought Fender lacked focus.
Fender goes off-key, cancels its IPO
www.nbcnews.com
Without the IPO money, Fender had cash problems. They had borrowed heavily to purchase KMC for $117 million in cash.
So Fender put KMC up for sale.
And then DW bought mucj of it (outside the complex distribution system) in 2015:
Drum Workshop Purchases Latin Percussion, Toca Percussion, Gretsch Drums, Gibraltar Hardware, and KAT Percussion from Fender’s KMC Subsidiary
Drum Workshop Purchases Latin Percussion, Toca Percussion, Gretsch Drums, Gibraltar Hardware, and KAT Percussion from Fender’s KMC Subsidiary Since 1977, the world's most widely read drum magazine: in print, online, and the Modern Drummer app. Where the world's greatest drummer meet.
www.moderndrummer.com
Fender Press Releases & Products Updates | Fender Newsroom
Fender News Releases, Brand Logos, Media Kits, Company History & Media Contacts
The story sent shock waves through the music industry because it didn't make sense that a relatively small company like DW could afford such a huge conglomerate like KMC. The talk at NAMM that year was about how the heck did DW pull off such a large purchase? Rumors floated about how many bank loans the Lombardi family must have put together to make it happen.
DW then turned around and sold off as many of the non-percussion brands as it could, save Ovation Guitars. But DW didn't stop buying, as they bought the rest of Gretsch (part of it as already owned by KMC and included in the KMC purchase), and later, Slingerland.
So my guess is, the debt payments on the KMC, Gretch, and Slingerland purchases just got too much to handle. They never found a buyer for Ovation guitars. So my guess is Don and Chris started looking for alternative ways to refinance all their debts.
Roland USA main US headquarters is approximately a 2-hour drive from the DW factory in Oxnard.
So it made sense to approach Roland with an offer to sell shares in DW to pay off all their loans.
Of course, this is just theory and conjecture, as DW is a private company and does not have to disclose its books. But the fact that DW bought out a big chunk of the much larger KMC is public knowledge.
