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Word on the street: Nordica aquires Blizzard and Dolomite

post #1 of 28
Thread Starter 
What does this mean? Nordica now owns a brand with a ski manufacturing plant- expect prices of Nordica skis to fall. As a result of the deal, Dalbello has been pawned off to Elan.

Comes from a reliable source. I'll post an article as soon as I find one.
post #2 of 28
Quote:
Originally Posted by Takecontrol618 View Post
What does this mean? Nordica now owns a brand with a ski manufacturing plant- expect prices of Nordica skis to fall. As a result of the deal, Dalbello has been pawned off to Elan.

Comes from a reliable source. I'll post an article as soon as I find one.
Some of Nordica's skis were being made by Blossom in Italy. I have heard this Rumour too. Also Blossom will be making skis for someone else next year.
post #3 of 28
Dolomite and Nordica have both been owned by Tecnica for some time, so that isn't really a change. My hunch is that Nordica is simply moving into the building where Dolomite has been warehoused. Nordica has been in rental space since Tecnica acquired them.

If the Blizzard part is true, Dalbello would not have been pawned off to Elan, it would have been the other way around. It is Elan that would "move." Elan currently resides in the aforementioned Dolomite building, and I bet that Dalbello isn't moving in.

It would certainly make some sense. Völkl, Elan, and now Fischer have all made Nordicas over the last few years. I'm sure they'd love to control their own destiny.

:
post #4 of 28
Quote:
Originally Posted by troutman View Post
If the Blizzard part is true, Dalbello would not have been pawned off to Elan, it would have been the other way around. It is Elan that would "move." Elan currently resides in the aforementioned Dolomite building, and I bet that Dalbello isn't moving in.
:
That would be a very accurate assumption
post #5 of 28

Monopoly

In these days of conglomerates and M&A activity, boundaries get blurred and identities lost.

What used to be well-defined as an "Austrian" or "French" ski, means less today. Since Volkl was acquired by K2, some of Volkl's flagship skis are now made in China. Austrian skis owned by US firm made in China?

The merry-go-round continues with the brands mentioned here, and it won't stop anytime soon.

If the net result was economies of scale, yielding better equipment at lower prices, I'd be impressed. Regretfully, it isn't so.

Equipment prices continue to soar at rates far beyond inflation (Atomic up by 15% this year?).

I'm glad to see so many "off-brand", smaller players entering the market.
post #6 of 28
Thread Starter 
Ether way, the important thing is that Nordica no longer needs to rely on OEMs to manufacture their skis.
post #7 of 28
Quote:
Originally Posted by Captain_Strato View Post
In these days of conglomerates and M&A activity, boundaries get blurred and identities lost...If the net result was economies of scale, yielding better equipment at lower prices, I'd be impressed. Regretfully, it isn't so...Equipment prices continue to soar at rates far beyond inflation (Atomic up by 15% this year?).
I know this isn't a popular viewpoint here, and I am not trying to hijack the thread, but the reality is that producing skis and ski boots is not as profitable as some here believe it to be.

If it were, many of these companies would not be so willingly "acquired."
post #8 of 28
I think Nordica is going to be a big player in the world-wide ski market within a few years. Last season seemed to be a big turning point for them, and this year's line-up is even stronger. I expect good things to come from them in the future. I believe it was troutman that predicted at the end of the summer that Nordica would likely move into the top 6 in sales in the US. It is good to have another big player emerging... even if they are owned by Tecnica/Marker (or whatever that huge conglomerate is).
Later
GREG
post #9 of 28
Quote:
Originally Posted by troutman View Post
Dolomite and Nordica have both been owned by Tecnica for some time, so that isn't really a change. My hunch is that Nordica is simply moving into the building where Dolomite has been warehoused. Nordica has been in rental space since Tecnica acquired them.

If the Blizzard part is true, Dalbello would not have been pawned off to Elan, it would have been the other way around. It is Elan that would "move." Elan currently resides in the aforementioned Dolomite building, and I bet that Dalbello isn't moving in.

It would certainly make some sense. Völkl, Elan, and now Fischer have all made Nordicas over the last few years. I'm sure they'd love to control their own destiny.

:
Here's one piece of the puzzle that is true, Dalbello and Elan are aligning in a joint marketing stategy.Elan US will be moving out of West Lebanon,NH (technica/Volkl?) and into the Andover, NH Dalbello offices.
http://www.skipressworld.com/us/en/d...?cat=Fi nance

I haven't found anything about Nordica yet.
post #10 of 28
Quote:
Originally Posted by 2-turn View Post
Here's one piece of the puzzle that is true, Dalbello and Elan are aligning in a joint marketing stategy.Elan US will be moving out of West Lebanon,NH (technica/Volkl?) and into the Andover, NH Dalbello offices.
http://www.skipressworld.com/us/en/d...?cat=Fi nance
I am interested on how this will work on the "rep" level. Rep A has Dalbello/Blizzard, Rep B has Elan/Dolomite and Rep C has Nordica. Who gets to rep what in this fall out?
post #11 of 28
Quote:
Originally Posted by Phil Pugliese View Post
I am interested on how this will work on the "rep" level. Rep A has Dalbello/Blizzard, Rep B has Elan/Dolomite and Rep C has Nordica. Who gets to rep what in this fall out?
Interesting question, Phil, but I suspect that it's not that complex.

My guess is that the Nordica reps won't be affected - they have successful ski boots and increasingly good skis.

I bet the current Dalbello/Blizzard reps become Dalbello/Elan reps. Dalbello makes more commisions, and that is the "acquiring" company.

The current Elan/Dolomite reps have the most to lose. Apparently. Dolomite will be soldiering on, but by itself, that isn't enough to pay for the gas for your rig. This is where Blizzard comes in. If that's true, you would assume the Tecnica group would pair it with Dolomite.
post #12 of 28
Quote:
Originally Posted by troutman View Post
I bet the current Dalbello/Blizzard reps become Dalbello/Elan reps.
LOL, what is funny, I sold off my Elan 999's and replaced them Blizzard Titans.
post #13 of 28
I suspect some of this is powered by Nordica's recent success in the ski market.

Why have someone else OEM your skis, when your designs are among the top 2 or 3 in the market?

I've never skied Nordica's, but I've read enough about them on this forum to know that they're the real deal. With such leaps in performance within 2-year time-frame, surging market demand is sure to follow.

Under those conditions, who wouldn't want direct control of manufacturing?
post #14 of 28
Cap'n

Astute comments. In fact, ski delivery has been spotty from Nordica this year wheras my boots came in 90% complete and on time. One thing is sure, the Nordica skis are very well thought out (especially in the HR line) This results in skis that have true differentiation within the models. This is not always easy to execute from a commercial standpoint (although Nordica has managed very well to date)

SJ
post #15 of 28
CS: "...Austrian skis owned by US firm made in China?"

The Titan 8's I have from last season say "designed in the U.S., made in Austria"

post #16 of 28
Quote:
Originally Posted by SierraJim View Post
Cap'n

Astute comments. In fact, ski delivery has been spotty from Nordica this year wheras my boots came in 90% complete and on time. One thing is sure, the Nordica skis are very well thought out (especially in the HR line) This results in skis that have true differentiation within the models. This is not always easy to execute from a commercial standpoint (although Nordica has managed very well to date)

SJ
My local shop has yet to receive their Nordica boot order for this year.:
post #17 of 28
I have to believe in the long run the consumer will pay more as a result of the consolidations in the equipment industry. Boots and skis are expensive now, but the profitability for the manufacturers is still low, and shops keep biting the dust because its so hard to be profitable. Something has to give.
post #18 of 28
Quote:
Originally Posted by roundturns View Post
I have to believe in the long run the consumer will pay more as a result of the consolidations in the equipment industry. Boots and skis are expensive now, but the profitability for the manufacturers is still low, and shops keep biting the dust because its so hard to be profitable. Something has to give.

while I may not know much about how much the current ski manufacturers earn in profits, I must admit, I doubt skis will get much more expensive. It doesn't seem they have really gotten any more expensive in the last twenty years or so. I remember back in the late eighties when a pair of flat volkls were about 700 bucks, now a pair of flat volkls are around 700 bucks. it just doesn't seem to go up. binding system skis are removing options of using old bindings, but that seems comparative as well.
post #19 of 28
While a top of the line set up now may be a little more than it was a few years ago, I don't think it's a whole lot. Another thing that is a nice (fairly recent) benefit is that there are mid-level skis out there now that sell (with bindings) for the same or less than top of the line best sellers from a few years ago. Yet, many of these new mid-level offerings are better skis. In some cases, a lot better.

The economic realities of operating a ski factory dictate that the factory be productive. This means that it has to build skis all year long. This has caused a gross oversupply of goods in the last several years. With fewer factories operating, it will be possible for some of the companies to apportion production time, produce fewer skis and therefore maintain better ex-factory and wholesaler margins. If this happens, the manufacturers stand a better chance of being here in five or ten years.

SJ
post #20 of 28
Just to clarify some things.

Nordica already owns the Dolomite Factory as does the family own the Tecnica factory . Their skis are mostly built in their factory in Italy, but some are now being jobed to Fischer. These happen to be some of the model's that are late. Most of our Nordica boots that have come this season are manufactured in Hungary.

The Dalbello/Elan alliance has been a while in the works. You can read about this at the Skipressworld web site. This is interesting as most of the sales staff for Dalbello in the US used to be Elan Reps. Should be a seamless move and help both independent companies world wide.

The status off Blizzard in the US is unknown at this time. THe factory is independent in Austria. The Dolomite brand has some interesting rumors as to where that will go, hbut I will not repeat them for know as they are only rumors.
post #21 of 28
Quote:
Originally Posted by Captain_Strato View Post
Austrian skis owned by US firm made in China?
German, not Austrian.
post #22 of 28
Quote:
Originally Posted by rockfordskiman View Post
Just to clarify some things.

Nordica already owns the Dolomite Factory as does the family own the Tecnica factory . Their skis are mostly built in their factory in Italy, but some are now being jobed to Fischer.

The status off Blizzard in the US is unknown at this time. THe factory is independent in Austria. The Dolomite brand has some interesting rumors as to where that will go, hbut I will not repeat them for know as they are only rumors.
Not trying to pick a fight, but this isn't quite true. Tecnica SPA (Zanatta family) is the company that owns everything else - Nordica, Dolomite, Rollerblade, etc. Nordica 'Race Room' skis and prototypes are made in Italy, but everything else has been made by OEM manufacturers - first Völkl, then Elan, now Fischer. The move of Nordica production from Elan to Fischer this past January was the first sign that the relationship between Tecnica and Elan was not moving forward, thus the transfer this week of the Elan distribution from Tecnica to Dalbello.

Rockford is correct that many current Dalbello reps have prior experience with Elan, so the transfer should be relatively seamless, indeed. It is the Elan/Dolomite reps that have a little problem, even though, as Rockford notes, the Dolomite brand will be "relaunched" in the US with new management. Many of these reps do sell other lines, though, so they are not totally out in the cold.

Blizzard? Still only rumor at this point, so I won't enage in speculation either, but I bet there are some other dominoes that need to fall before there is any formal anouncement about the future of the Blizzard brand in the US.

:
post #23 of 28
True, as I recall the Zanatta family is who sold Nordica to Benatton in the first place, and bought it and Rollerblade a few yers back. I don't know for sure if they owned Tecnica, Dolomite at the time or purchased them with the Nordica sale money. I'm getting too old to remember all I've heard in the past.
post #24 of 28
Hey... I worked for Elan / Dolomite in the early 90's when it started the alliance... basically we needed a "boot/ski/binding combo" to compete with Salomon, Head etc. We did a good job of increasing Dolo sales immediately and had good "packages" to offer at all retail price points. Having been in both factories they both did a good job of integrating newer technology into their lines. But the ski designers at Elan are really amazing... they are always trying some thing new, and have a huge stable of testers and developers that know what makes a ski turn etc. The orginal Munari family at Dolomite was realy nice and they ran out of capital to compete in the modern ski world... Basically there is too much production capasity vs. ski demand... It will be interesting to see how this new alliance plays out...
post #25 of 28
Quote:
Originally Posted by Rock of Park City View Post
Hey... I worked for Elan / Dolomite in the early 90's when it started the alliance... basically we needed a "boot/ski/binding combo" to compete with Salomon, Head etc. We did a good job of increasing Dolo sales immediately and had good "packages" to offer at all retail price points. Having been in both factories they both did a good job of integrating newer technology into their lines. But the ski designers at Elan are really amazing... they are always trying some thing new, and have a huge stable of testers and developers that know what makes a ski turn etc. The orginal Munari family at Dolomite was realy nice and they ran out of capital to compete in the modern ski world... Basically there is too much production capasity vs. ski demand... It will be interesting to see how this new alliance plays out...
I skied with a couple of the Elan guys when the SCX was introduced, Geoff Bruce and some real big guy...Bill something..who was he? Elan had Geze at that point too, right/
post #26 of 28
Quote:
Originally Posted by troutman View Post
Interesting question, Phil, but I suspect that it's not that complex.

My guess is that the Nordica reps won't be affected - they have successful ski boots and increasingly good skis.

I bet the current Dalbello/Blizzard reps become Dalbello/Elan reps. Dalbello makes more commisions, and that is the "acquiring" company.

The current Elan/Dolomite reps have the most to lose. Apparently. Dolomite will be soldiering on, but by itself, that isn't enough to pay for the gas for your rig. This is where Blizzard comes in. If that's true, you would assume the Tecnica group would pair it with Dolomite.
Talking to someone who's in on these things, a former rep, his main comment was that the industry is in a state of flux right now, but he sees Technica and Blizzard coming together.....
post #27 of 28
Quote:
Originally Posted by 2-turn View Post
Talking to someone who's in on these things, a former rep, his main comment was that the industry is in a state of flux right now, but he sees Tecnica and Blizzard coming together.....
That makes sense.

I am more interested in what will happen with the Dalbello and Elan reps. My guess is since Dalbello did the aquisition, their reps have the inside track.
post #28 of 28
I received this press release today:

Tecnica Group announces the acquisition of Blizzard Gmbh

Mittersill/Giavera

Tecnica Group – worldwide leader in the winter sports equipment – announces the acquisition of Blizzard Gmbh - one of the most famous Austrian ski manufacturers.

The agreement is based on the acquisition – after the official approval by the Austrian Antitrust Authority –of 66,66% of shares of Blizzard Sport Gmbh by Nordica Spa ( 100% controlled by Tecnica Group).

Giancarlo Zanatta – President and CEO of Tecnica Group – says “Blizzard is a very dynamic and upcoming company with a tremendous know-how in production of skis, and a great capability and heritage in technology and manufacturing. These assets will give to Tecnica Group a strong and effective competitive advantage. Moreover, Blizzard brand will continue in developing all its big potentials at the very best.”

Karl Hofstätter – CEO of Blizzard Sports Gmbh – is very satisfied with this agreement: “Tecnica Group is a strong and reliable partner. This acquisition will allow us to continue our international growth. We look forward to benefits from the synergies available between Blizzard and Tecnica Group”.

We expect to achieve immediate powerful synergies in raw materials purchasing, ski production and in R&D. As first result of this deal, Nordica ski production will partially move to Mittersill factory.

Blizzard will also use the power of Tecnica Group and its brands to optimize its international sales and distribution network.

Both companies will also benefit from the new Blizzard production facility in Ukraine, scheduled to begin production in January 2007.
Tecnica Group, led by G.Zanatta and F.Vaccari, and Blizzard expect this acquisition to strengthen the position of both companies in the international winter sport equipment market.

After the acquisition of Blizzard – whose turnover 2006 will be around 35 millions € – Tecnica Group will exceed 400 millions € per year.
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