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Location: NJ | JAM Industries Buys Kaman Music, Appoints Mark Terry to Lead MI Group
Baie D'urfe, Quebec, Canada, February 11, 2015 - Jam Industries has announced today the asset purchase of the wholesale distribution business, KMC Music, B&J Music and selected trade marks from Fender Musical Instrument Corp. The transaction provides JAM Industries an expanded product line and accessory driven expertise, to better serve its dealer network throughout the United States and Canada.
For almost 50 years, KMC Music has been a staple of distribution within the musical instrument industry. During that time, they have distributed virtually every important musical brand and accessory to stores across the nation. KMC has been the one stop shop for music retailers, offering the widest, deepest assortment of products, and the highest service level in the industry.
"We are very excited about this acquisition – it adds greatly to the JAM family of companies in North America. KMC Music has a tremendous legacy and unique distribution abilities that will allow us to provide our current and expanded North American dealer base with the widest and best product offering anywhere,” said Martin Szpiro, President and CEO of JAM Industries, Ltd. “It has been a pleasure doing this transaction with FMIC and we look forward to completing the transition of key employees and operations shortly.”
"We are extremely pleased to have found a company with ideal synergies for the KMC Music wholesale business in JAM Industries, Ltd.,” said FMIC’s interim CEO and board member Scott Gilbertson. “They possess great vision for the future of their business and we believe this transaction will mutually benefit each of our strategic objectives."
The JAM Industries US MI group now includes KMC Music, B&J Music, U.S. Music Corp and Davitt & Hanser. Jam is also pleased to announce the appointment of Mark Terry as CEO of this newly created group.
Terry has more than 37 years of music industry experience, including President of KMC, President of The AVC Group, President of Harman Pro Group, President of JBL Professional and Vice President of Sales for New England Digital Corporation. Terry has extensive experience and contacts in the industry and a track record of success, and will have full responsibility for all the Jam U.S. MI companies.
“I am honored to be joining the JAM team at this pivotal time in our industry” said Mark Terry. “The role of distribution is changing quickly and opening up great opportunities for companies with vision. The creation of JAM’s US Music Group allows us to strategically bring together the strongest players in the US MI distribution business in a way that will benefit both vendors and dealers.”
“I am pleased to announce the appointment of Mark Terry to this position” said Martin Szpiro, chief executive officer of Jam. “Mark is a highly accomplished and respected music industry executive and will be able to bring his extensive musical instrument industry experience and expertise to help Jam meet and exceed its business goals.” Terry will report to Szpiro and will be based in Bloomfield, Conn.
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About JAM Industries, Ltd.: Jam Industries, based in Montreal, Quebec Canada is a family of companies that include U.S. based American Music & Sound, Ashly Audio, Davitt & Hanser and U.S. Music Corp. For more information, visit www.jamindustries.com.
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Location: 6 String Ranch | And so the first thing they do is fire all the KMC sales people and managers. Nice. |
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Location: NJ | What a steaming, Crock o'Shit . . . |
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Location: Keepin' It Weird in Portland, OR | So, is Fender bankrupt yet? 
(besides "morally")
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Location: Canada | The corporate world is mysterious ... I wonder if there was a significant financial benefit to FMIC from buying & selling Guild & KMC and all the resulting "restructurings" that happened in the last 10 years or so. |
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Location: Boise, Idaho | Mysterious probably isn't the right word. Strange maybe. As a British client told me years ago, American companies don't seem to make products to sell anymore. They just buy and sell other companies. Seems like everything is geared to doing press releases to drive up the stock prices instead of doing press releases to sell products. |
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Location: Canada | I mean just in terms of straight financials not considering and human or intellectual costs or "goodwill", or operating the companies, or removing competing brand names. They had certain expenses of purchasing Guild, Tacoma, and KMC (incl. Hamer and Ovation), and then the expense of doing the various re-locations. And then they had some revenue from selling Guild, The Drum/Ovation parts, and the rest of KMC. In terms of physical assets there was machinery and inventory (raw and finished product) from Guild, Tacoma, Hamer and Ovation which I assume the bulk was sold, went to Cordoba, or was kept by FMIC. So would the bean counters be pleased by this mess?
Edited by d'ovation 2015-02-12 11:45 AM
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Location: Jet City | fire the revenue generators... they're getting off to a great start. |
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Location: Texas | I wonder if they shopped Hamer around before shutting them down. They made a decent guitar...maybe FMIC didn't want the competition. |
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Location: Boise, Idaho | I agree it doesn't make sense to me anyway, but I am not a financial consultant. Whether we call it mysterious, strange or whatever, the decisions don't seem to be based upon making and selling products at a profit. Maybe the bean counters are counting different beans and shareholders are happy if their share value goes up. My thought was that Fender would close Hamer because of the competition, stop selling Fender acoustics and try to sell high end Guild and Ovations. I only got the Hamer part right. |
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Location: Jet City | I don't see how Hamer competed with Fender |
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Location: closely held secret | damon67 - 2015-02-12 11:14 AM
I don't see how Hamer competed with Fender
Damon, may I reword this?
I don't see how Fender could possibly have competed with Hamer...
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Location: Texas | Amen, Waskel. |
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Location: Flahdaw | Mark in Boise - 2015-02-12 12:25 PM
Mysterious probably isn't the right word. Strange maybe. As a British client told me years ago, American companies don't seem to make products to sell anymore. They just buy and sell other companies. Seems like everything is geared to doing press releases to drive up the stock prices instead of doing press releases to sell products.
This is it in a nutshell. Publicly traded companies suck, for the most part.
We own a business. We CARE about our customers, and we always try to do the right thing...sometimes even at our own expense. Public companies exist to suck the d**k of their stockholders. If a hard choice has to be made between the consumer or the stockholders, the stockholders alway win.
Edited by BobG 2015-02-12 4:50 PM
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Location: Sydney, Australia | I think the publicly traded companies suck because of superannuation/investment funds. The people buying the shares are traders acting on behalf of a large fund where the people who actually own the equity get little/no say in the investment. So the trader is using other people's money to try and generate bonuses and commissions for himself. That's all he cares about. |
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Location: Canada | darkbarguitar - 2015-02-12 3:48 PM Publicly traded companies suck, for the most part. Yeah and how does this apply here? Fender is NOT a publicly traded company but owned by a private group .
Edited by d'ovation 2015-02-12 6:38 PM
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Location: Sunshine State, Australia | Did anybody else notice that 'Ovation' (or 'Hamer', or 'Guild') weren't even mentioned in the press release? Nothing to get excited about as Ovation guitar tragics. It's all just suits swapping bits of paper with other suits, and who's logo is on the header is about the only thing that changes. |
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Location: Canada | muzza - 2015-02-12 6:53 PM Did anybody else notice that 'Ovation' (or 'Hamer', or 'Guild') weren't even mentioned in the press release? Well Hamer was already gone and who know if the rights to the name were sold at all, and Ovation already was part of another unrelated deal so Fender has nothing to do with them anymore. |
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Location: Flahdaw | merlin666 - 2015-02-12 7:37 PM
darkbarguitar - 2015-02-12 3:48 PM Publicly traded companies suck, for the most part. Yeah and how does this apply here? Fender is NOT a publicly traded company but owned by a private group .
True. I guess I could have added Private Equity firms and Hedge Funds to my diatribe |
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Location: Always beautiful canyon country of Utah | The good news is that there are still plenty of quality Ovations and Adami around for us to play!! Enough to last far beyond our lifetimes!! And I for one plan to enjoy every millisecond!! |
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Location: Canada | nerdydave - 2015-02-12 11:10 PM The good news is that there are still plenty of quality Ovations and Adami around for us to play!! Enough to last far beyond our lifetimes!! And I for one plan to enjoy every millisecond!! That may well be, but I think people are holding on to them now. There have been few postings in the For Sale section lately, and eBay is also drying up. |
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Location: Fitzwilliam, New Hampshire | Guild is now part of Cordoba Guitars in California. There is a video interview with Ren Ferguson at the NAMM show (courtesy of Acoustic Guitar mag)who is now part of that group after managing the manufacturing in California. Ironically when asked about the Guild products in New Hartford (prior to the departure), he mentioned that they were doing a great job building the Guild line although he is making more improvements (ahem..) to the product with his new team in CA. He must have had a prior stint in Marketing or public affairs given his well articulated language as to not offend anyone past or present(lol)! |
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Location: Keepin' It Weird in Portland, OR | Here is a Thought...
If Guild was made in Westerly, RI.
Then Guild was made in New Hartford, CT.
Now it is gonna be made by Cordoba in wherever, CA.
How is that the Same guitar?
I am sure that you can tell the difference between an RI or a CT "Guild".
Much like you can tell the difference between a Chinese or Korean "Celebrity".
And definitely a USA or Asian "Ovation".
So people shouldn't even expect a similar product.
This is just corporate name trading.
It all turned to **** as soon as Fender touched it.
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Location: Blue Ridge Mountains | d'ovation wrote: (In terms of physical assets there was machinery and inventory (raw and finished product) from Guild, Tacoma, Hamer and Ovation which I assume the bulk was sold, went to Cordoba, or was kept by FMIC. So would the bean counters be pleased by this mess?)
NEVER Assume anything....one of the first things I learned as a U.S. Marine back in the day...its so nice to think that the majority of the inventory from New Hartford is in storage, or went to the buyers of Guild, etc. but in fact, it was much more financially benificial to Fender to write off said inventory as a capital loss...so what happened to the Guild, Fender Custom Shop guitars, etc. ? There are many people who know...for whatever reasons they are sitting on the truth...but suffice it to say you will probably not be playing any of them or seeing them for sale...I am choosing to keep the proof I have of this to myself...you may not like this news...but, believe me, there are lots of strange things that happen when companies become over extended with product, material, etc: it becomes whatever is best for the bottom line...and that is just what Fender did! Closing the factory and basically firing the entire labor force is only part of the story...you might do an Internet search for Fender Custom Shop Acoustics, and Guild Custom Shop Acoustics made in New Hartford...you will not find many and in the case of Fender CS Acoustics, series totals are given that are extremely low...I saw a lot of this when I worked for Anhesier Bush at Bush Gardens Williamsburg back in the 80's...Capital Loss tax credits pad corporate Americas bottom line! Sadly, it's all legal!
Edited by MusicMishka 2015-02-13 10:33 AM
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Location: Fitzwilliam, New Hampshire | Ren Ferguson also mentioned that he would be "lightening" the guitar and changes to the bracing. So It sounds like the original Guild we know will be different from this point forward. Sure they might sound better (depending on your ear preferences) or be closer to the lighter touch and sensitivity of a Taylor, but the Guild legacy won't be represented in the future IMHO(sigh)! |
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kmc sold
