The internet has made the world an astoundingly small place, hasn’t it?
Providing you can trust everything you read (which you should be able to from the Securities Exchange Commission), we have these interesting details that readers have dug up and placed in comments.
This gives us a good background as to who some of the people associated with Merbanco are.
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UPDATE: from Henry Strupe (Djup Strupe’s american brother)
What we’ve dug up here is useful as a sketch, but that’s pretty much all it is. An outline. The substance to this lies in the people behind the scenes, for which Merbanco is acting as a front office.
His words:
Merbanco is nothing but a playform to source. Deals are always in an entity created for the specific deal.
Merbanco is a mule.
So whilst what we know is valuable and reassuring, it’s also incomplete.
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Christopher A. Johnston has been President and Chief Executive Officer of Merbanco, Inc. (“Merbanco”), a merchant banking company, since 1991 (see “CERTAIN FMP TRANSACTIONS”), and President and Chief Executive Officer and director of FMP since its organization in 1996. He also served as President of Republic Realty Mortgage Co. from 1992 to 1995. He is a citizen of the United States and his principal occupation and employment is as President of Merbanco, Incorporated. He is a director and President of Acquisition Corp. Christopher A. Johnston is the son of Richard P. Johnston and brother of David E. Johnston.
Richard P. Johnston has been Chairman of the Board of Merbanco since 1991 (see “CERTAIN FMP TRANSACTIONS”), served as Chairman of the Board of Republic Realty Mortgage Co., a commercial mortgage company, from 1992 to 1995, was Managing Director of Hamilton Robinson & Co., an investment advisory company, from 1991 to 1994, and has been Chairman of the Board and director of FMP since its organization in 1996. Mr. Johnston is a founder and a director of AGCO Corporation (AG: NYSE), a farm implement manufacturer and distributor, a director of Myers Industries, Inc. (MYE: AMEX) a plastic and rubber products manufacturer, a director of Results Radio LLC, a radio broadcasting company, and Hotels Online.com, an internet service provider for hotels. Richard P. Johnston is the father of Christopher A. Johnston and David E. Johnston.
The SEC information says that Richard Johnston is a co-founder and director of AGCO. This doesn’t appear to be current. More recent information also in comments indicates as follows:
Mr. Richard P. Johnston serves as Director of Myers since 1992. He Currently a private equity investor; Chairman of the Board of Royal Associates, a holding company based in Jackson Hole, Wyoming; Director of Results Radio, Inc., Sonoma, California; formerly served as Founder and Director of AGCO, Inc. (NYSE), Duluth, Georgia, a manufacturer and distributor of agricultural equipment.
David E. Johnston – information removed as it doesn’t seem relevant to proceedings here.
——
As mentioned in comments, the AGCO connection, although no longer current, is a significant one. AGCO are a huge, global company involved in the manufacture and distribution of agricultural equipment and it appears that one of the Merbanco players was part of the formation of this company.
From their website:
AGCO is one of the world’s largest manufacturers and distributors of agricultural equipment. Our brands are sold in more than 140 countries and are led by these four core global brands:
- Massey Ferguson
- Valtra
- Challenger
- Fendt
Technical diversity, multiple brands, and global distribution strength are the keys to AGCO’s growth strategy. Major market share positions in key agricultural markets of the world have been achieved by our strong focus on customer service, leading edge technology and an independent dealer network of more than 3,000 full service dealers – the largest distribution network in the industry.
AGCO’s innovative products continuously receive recognition and awards at international exhibitions, but our most coveted award is the recognition of our wide-range of products by farmers and dealers across the globe.
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Remember that Merbanco appears to be a merchant banking operation and from these descriptions it seems that father (Richard) and son (Christopher) are involved in Merbanco.
It’s likely not just them, however, with clients or contacts in the background that are part of the deal.
The good news is that this background involves
- plenty of experience
- global experience
- financial experience
- manufacturing experience
- long-term development of a significant manufacturing company
…..and there’s no bitter aftertaste.
If this is what it appears to be then I think we’ve found a buyer for Saab just about anyone can support.
I hope they go well. Very well.
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{ 49 comments }
as i come from a farming background i can state that ACGO have some serious engineering pedigree backed with serious financial clout.
Well, Lamborghini had background in agricultural equipment industry
. I must admit I like Merbanco the most.
After reading here that the turbos on my Saabs have a history from Scania’s trucks, sounds like a unique and workable mix. Saab needs a corporate parent who can provide necessary funding and broad general guidance. An ownership group that doesn’t have the “rule the world through unsustainable production volumes” would help too. Saab seem more than capable of growing themselves and managing cost, except for the neglectful and damaging actions of their most recent corporate parent.
I got 32 MPH in a 9-5 sedan with an automatic tranny this weekend … with no hyper-mile-ing attempted. There’s no reason for Saab to get sent to the dustbin of automotive history. Let ‘em live!
That would be MPG, of course.
32 MPH would be hypermiling. Nah, 32 MPH would earn me about 16 MPG.
Both Lamborghini and Porsche have made tractors, so why not a Saab tractor?
Or just imagine the new 9-5 with a TID engine lifted from Massey Ferguson. That would be a serious power plant!
Lets hope they arent run like the Madoff empire.
Here’s just a tidbit from Valtra’s website. But it’s interesting to look through that they are interested in bio-diesal, sponsoring hockey teams, and have roots in Sweden with Volvo as well as Finland.
http://www.valtra.us/company/54.asp
A few more interesting things I dug up (sorry if any are repeats):
One of the divisions of AGCO is SISU POWER (AKA SisuDiesel). They are “one of the world’s leading makers of diesel engines”, headquartered in Finland.
http://www.agcosisupower.com/company
By the way, SisuDiesel engines can use up to 100% BioDiesel: http://www.agcocorp.com/default.cfm/default.cfm?pid=1.4.2&action=xmlnewsdetail&releaseid=936736
Unfortunately it appears one of Christopher Johnston’s recent real estate ventures didn’t go so well: http://www.planetjh.com/news/A_104591.aspx
Merbanco’s Ohio corporation registration (dating back to 1991) seems to have been canceled recently: http://www2.sos.state.oh.us/pls/portal/PORTAL_BS.BS_QRY_BUS_FILING_DET.SHOW?p_arg_names=charter_num&p_arg_values=801076 and http://www2.sos.state.oh.us/reports/rwservlet?imgc&Din=200907140520
Merbanco’s Wyoming corporation registration (dating to 2001) was also withdrawn in 2007: https://wyobiz.wy.gov/Ecommerce/Common/FilingDetail.aspx?FilingNum=2001-000420382
What all this means, I don’t know. Just wanted to pass along a few more tidbits of information that may or may not be relevant, especially considering they are likely fronting for another investor.
Interesting. Valtra tractors was aquired from Valmet in Finland which also have a car factory that used to make Saabs (99 – first gen 9-3 Convertible). They have also made Porsche Boxters and are now preparing to make Fiskers. I also belive their “in-house” Sisu tractor diesel engine range emanates from Valmet.
These dudes either front for someone, or look to make a quick buck by turning around and selling the target to someone with a strategic fit. Saab isn’t a good fit for a PE firm acting rationally. And Merbanco’s story is shady, to say the least.
“Valtra’s pedigree is based on hard work and perseverance plus a degree of originality and audacity.”
Wait to see who Merbanco is representing, which we will only know if they are the finalist. A merchant bank does not need a big staff.
Who knows – maybe all three finalists are in that meeting in order to see if they can partner together, or in a pair.
I think Karen’s got it summed up pretty well there. Over all, there’s a lot of experience in the names we’ve identified at Merbanco. But they’re the face of what’s likely to be a well backed consortium and are likely not the source of funds or the final decision makers here. Rather, an experienced conduit through which the funds and decisions pass.
Also note: the AGCO link is a past link, with Johnston Sr now retired from there by the looks of things. What he helped build is pretty impressive and continues today.
Is it just a coincident that the Fisker will be equipped with a 2.0 liter turbo from GM (mainly developed by SAAB) and it will be produced by Valmet Finland, which is part of AGCO and used to produce SAAB’s as well?
Wasn’t Fisker planning to produce a smaller car as well? Maybe they need a partner to do so……
Is Merbanco maybe representing Fisker?
ok the Minister of Industry of Sweden said in an interview that he dosn’t know if Saab will survive.
STOCKHOLM -(Dow Jones)- Sweden’s industry minister Tuesday told Dow Jones Newswires it was “very difficult to say” whether Saab Automobile AB will succeed in finding a new owner that will allow it to survive after General Motors Corp. (GM) cuts its ties.
“Saab needs (a new owner) that has a lot of capital and can be a long-term owner, and who has a business plan for what they will do with Saab in the future,” Maud Olofsson said in an interview.
The Artical is from cnn money
Very impressive stuff. Quite a shocker really! I wonder if they will somehow tie-up with Koenigsegg, it will make it a good sell to the public.
As a side note, AFP reports from Trollhattan. Employees and officials are upbeat, “there is something in the air that we will fix this“.
After a short burst of sensibility, Maud Olofsson is back to damaging and inaccurate statements.
Mad Olofsson is probably more like it…..why is she almost wishing for Saab to fail? I honestly don’t get it nor do I like it one bit. Hopefully the Swedes realize what she is all about and give her the electoral BOOT.
Here’s a link to the interview on CNN Money that tonyvee mentioned. As usual, Fredrik and Maud go out of their way to spread negativity on SAAB…
If you want to contact Fredrik Reinfeldt and/or Maud Olofsson…
Fredrik Reinfeldt
http://www.sweden.gov.se/sb/d/7499
http://www.sweden.gov.se/pub/road/Classic/article/117/jsp/Render.jsp?a=70244&m=popup&l=en
Maud Olofsson
http://www.sweden.gov.se/sb/d/7534
http://www.sweden.gov.se/pub/road/Classic/article/117/jsp/Render.jsp?a=70273&m=popup&l=en
I suggest you are polite.
Agreed, Jerry: They’re either a front or trying to turn it around in 4 or 5 years to then sell SAAB or break it apart.
If they’re indeed a front of some kind… could it be for some form of MBO/LBO?
DN has some more information and it’s sources confirm the FT article.
GM is with the three candicates in Zürich, Switzerland together with Deutsche Bank.
http://www.dn.se/ekonomi/tre-kvar-i-saabstrid-1.887963
Now what the heck is this? Another Chinese in the SAAB game? According to Autoblog: “now Gasgoo, through a report in the South China Morning Post, is reporting that the Chinese automaker has turned its attention to Saab”
link:
http://www.autoblog.com/2009/06/09/report-chinese-automaker-wyoming-investors-still-in-bidding-mi/
Are are the Chinese just a month behind with news? Or what is happening?
Link to original SCMP article: http://www.scmp.com/portal/site/SCMP/menuitem.2af62ecb329d3d7733492d9253a0a0a0/?vgnextoid=8f9d8cb8b0bb1210VgnVCM100000360a0a0aRCRD&ss=Companies&s=Business
Political game. They are trying to put pressure
on GM to make good decision. Indirectly saying
To pick righ company so we can stay behind a loan.
Autocar in the UK have received a heads-up that Koenigsegg and the Swedish government are going to buy SAAB…
http://www.autocar.co.uk/blogs/autocarconfidential/archive/2009/06/09/has-saab-found-a-buyer.aspx
The author of this thread has been writing about the SAAB situation quite a lot.
This is getting more and more interesting, but I am having a real hard time believing the Swedish government would buy directly – perhaps via a company such as Vattefall?
The AGCO connection is apt, my Tid sounds like a tractor.
Seriously though, it’s about crunch time. Without knowing who Merbanco is fronting for, Kegg&co is still my favourite. SAAB needs balls and it needs them now!
Hilton@Autocar, deliberate misinfo??
He’s sort of in the SAAB fold but of course wouldn’t want to look like a fool so maybe has been fed exactly the wrong info. I’d like it to be true though. Prefer to see SAAB live one more day as a true griffin than a lifetime as a lamb.
Hilton in his own comments:
HiltonH June 9, 2009 7:07 PM
I should have said that the story originated in Sweden and my source is an auto industry figure.
Could still be a red (pickled) herring.
Sure, that’s the fun with non-confirmed internet spread “news” and the sms chain described by HH. I wonder anyway if he would dare to publish such a story if he would have strong doubts.
Sure, that’s the fun with non-confirmed internet spread “news” and the sms chain described by HH. I wonder anyway if he would dare to publish such a story if he would have strong doubts.
Wild shot.
Ok, here goes… I`m running Merbanco. I`m produceing tractors etc. I want to buy Saab and another company (Koenigsegg) wants the same but are lacking funds. This is what I`m thinking: Koenigsegg (brand and marketing resource)+ Merbanco (financial muscles, know how and “Saabist”*) = New Saab!?
Mabye to good to be true, but it sounds brilliant!
* Saablover
Saab workers upbeat as GM prepares to sell up
By James Franey – 18 hours ago
TROLLHAETTAN, Sweden (AFP) — As Saab’s American owner General Motors languishes in bankruptcy, some 4,000 miles away in southwest Sweden, the long midsummer days bring with them a ray of hope to workers at their Trollhaettan plant.
Saab is on the block as GM can no longer afford to keep the Swedish automaker as it looks to restructure its operations and emerge a new, leaner company.
“I feel very confident this will be solved,” said Fleming Steen, who works in the procurement and logistics department in Trollhaettan.
Executives expect a deal to be struck by the end of June and media reports say Swedish sports carmaker Koenigsegg and US investment company Renco Group are the front runners to buy the company.
In 2008, Saab’s global sales fell by 25 percent to 93,000 cars and the company posted losses of 3.0 billion kronor (241 million euros, 341 million dollars at the time) yet despite this, employees like Steen remain positive about the company’s future.
“I’ve been working here since 1978 and I’ve lived through all the ups and downs of this company. We make good cars and we have a very good brand. We will survive,” he said.
One of those lows came in the late 1980s when the strength of the Swedish krona to the dollar hurt Saab’s sales in the United States, its largest export market.
GM first invested in Saab in 1990, acquiring a 50 percent stake in its joint venture with truckmaker Scania. The Detroit giant wanted Saab to add a premium marque to its wide range of brands.
“The first time I heard that GM would take over the company, I thought it was very good news, but I think they have handled Saab very badly,” Steen told AFP.
Almost two decades later, Saab workers complain their US parent did not invest enough money into new products and the time is right to find a new owner.
“In this marriage between GM and Saab, it’s time for a divorce. It would be the best thing for both parties,” said Peter Baeckstroem, who started as a trainee engineer in Trollhaettan in 1984.
A car enthusiast since his youth, Baeckstroem has been the manager and curator since 1995 of the town’s Saab museum, some eight kilometres (five miles) from the plant.
He was part of the team that worked on the last generation of the Saab 9-5, which went on sale in 1997.
Some 12 years later, that model is only just about to be replaced.
“I think that the bureaucracy within General Motors was the main obstacle to getting the right products out onto the market as quickly as possible. We were put down on the priority list, frankly speaking,” he explained.
That view is shared by 62-year-old Boerje Rahm, who still works eight hours a day at the plant, five days a week.
“We had a lot of ideas about engines with lower fuel consumption but they got stopped,” he said.
His colleague Paul Aakerlund, the local president of IF Metall, the Swedish metal workers union, told AFP that GM was more interested in having the latest technology for its German brand Opel.
Rahm, currently Saab’s longest-serving employee after 47 years of service, says the automaker lost some of its identity when GM bought out the rest of it in 2000.
“In the beginning, you had the feeling of being part of a big Saab family, but once GM took over more and more that disappeared. There was a real community spirit when I first started working here,” Rahm said.
A father of four, Rahm joined Saab in 1962 as an errand boy at the age of fifteen, before graduating to the assembly line and later the technical development department.
“A lot of things have been much better of course, GM did a lot to improve the factory and improve working conditions,” he said.
Rahm is confident the company can be turned around and steered back into profitability.
“Of course,” he says with a smile. “I am convinced Saab will live for another 50 years.”
Saab employees say the US auto giant made mistakes, but many are more upset with the Swedish government’s handling of the sale.
Stockholm has refused to follow Washington’s lead in putting money directly into its auto industry as they fear it could end up in the pockets of GM and Ford, owners of Volvo Cars.
Prime Minister Fredrik Reinfeldt turned the heat up further in late May when he said Saab was in a “difficult and vulnerable position.”
“Why say something like that?” asked Baeckstroem, “It doesn’t help anyone. Are they trying to lock down Swedish industry totally so we all end up serving coffee and cleaning houses?”
Union official Aakerlund told AFP that employees were “frustrated” with the comments being made by Sweden’s right-wing government.
“They are very well informed about what is happening with the sale process. I do not understand why they are saying such negative things about us. People here are irritated by it,” said the Saab veteran of 31 years, who joined as an 18-year-old apprentice.
Aakerlund, who under Swedish labour law also sits on the automaker’s supervisory board, did not name who he would like to buy Saab, saying only it should be a “strong and independent” investor.
“There is something in the air that we will fix this,” he said.
But Backstroem warned that new ownership would not be enough to secure the company’s future.
“One thing is for sure,” he said. “We are guaranteed a lot of hard work. We will need to work like hell.”
http://www.google.com/hostednews/afp/article/ALeqM5huz9-09-sbwZHadIrYUVRkdx2HPg
Read the comments. Kroum was first about Koenigsegg + Merbanco. Sorry.
What about this nice set of Aero X photo’s and the comment (all from 2006…):
The person who photographed it says it is in Angelholm, in the south of Sweden. I think that Saab lets reporters drive the car there, and they keep it in a hangar or something. There is a airforce base there which is not used anymore. Koeniggsegg also have their factory there.
There are a few more pics here:
http://www.vettochetikett.info/SAAB_AERO_X/index.htm
Hey, I just got my letter from Troy A. Clarke, Group Vice President & President, GM North America. Thanking me for being a GM customer. Assuring me that all dealers (including Saab) remain open and ready for service, asking me to buy a new “high-quality, fuel-efficient and outstanding-value” GM vehicle. “Genuinely grateful for your business and we hope that you’ll stay with us.”
The footnote to the promise of 100,000-Mile/5-Year Powertrain Limited Warranty? “Excludes Saab.”
Well, as most of you know, I am Saab loyal. 1976. 1987. 1999. I am looking forward to sending Troy A. Clarke my response. Just as soon as I know how GM behaves with their divorce. I think it will be fun to let him know what passionate, lifetime Saab-devotion sounds like because I doubt he hears that from many GM owners.
yeah, the news is suddenly saying Beijing Auto is knocking at Saab’s door.
BTW, I estimate Saab will need ONE BILUSD in working capital to get through next two years due to 1) still weak demand outside of China, India, and Brazil; 2) launch new 9-5 and 9-4X & get more 9-3XWD out there, and 3) re-introduce Saab properly to the lost generation of Americans who only know Saab as a funny GM product.
Karen,not sure how you get your estimate together, there is weak demand everywhere and Saab is not even present in India and Brazil so wether demand is high there or not is not really of consequence.
I believe launching the new cars will cost a lot of money and probably more than they will bring in in the first instance. I would assume your 2nd point would take care of point three if executed properly.
I’m with Kroum & Kalle about the Merbanco/Keonigsegg/SAAB JV. Match made in heaven.
So, what do you all say about GM inserting a clause saying that they contain a small ownership in Saab Automobile, and that the “new GM” has the right to up that ownership in a few years time?
Haha, and I wrote that comment at the same time Swade posted about it…
Hi ctm,
wehre have you this information from ?
In the article from FT I can only find a line saying GM is maybe keeping less than 10% of SAAB, but nothing about the right to get a biger part in a few years.
@Grumpy: my estimate of onebilusd in cash for next two years is based on Saab needing 30milusd per month February-May from GM’s 150milusd to Saab in Feb. I increased monthly cash need to 50mil as Trollhattan goes back to making enough cars to feed gradually increasing sales and new model intros. Was not one of JAJ’s assumptions that Saab would be at breakeven in 2011?
Sorry to confuse my point about weak global demand everywhere Saab is in the market. If Saab were in Brazil with E85 model, they would benefit. Being in so many weak demand markets makes it that much harder to sell when you are in bankruptcy.
U.S. market revival is very important for New Saab.
and where GM has done most damage. Anyone in their late 20′s/early 30′s never got to know Saab at it’s best. Needs some clever marketing to cut through the jumble.
As we all know, Saab has somehow still managed to maintain some individuality in their cars (except for the 9-7) despite being under GM’s motherly tutalege. At the same time, we’ve lamented the fact that the cars are not what they could have, should have been, and that Saab is late to the party on electric and hybrid vehicles,
We’re all waiting with baited breath for the new 9-4 and 9-5. We expect them, along with an improving economy, to help turn abround Saab’s dismal sales figures. Let me be the turd in the punchbowl for a second. These highly anticipated cars were in fact developed under GM. While I have no doubt that they will be good cars and have some nice features and bells and whistles that make them Saabs, what is there about them that will differeniate them from the pack? Or are they really just stop gap models that hopefully will stop the bleeding until “real” new Saabs are designed and produced?
I don’t know why, but somehow SAAB, at least with the 9-5, has been allowed to do things they they wern’t allowed some time ago, e.g. HyperStrut.
Maybe the guys in Detroit had enough (financial) problems and let SAAB do what they wanted (almost).
I’ll take the Rockies!
TROLL ALERT!!!
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