Rumor has it Recteq is getting new investors

[CarpeInferi]

I would hope to at least see some good packages come back but doubt it as long as sales seem to be going strong. I thought with all that has been going on I would see people saving money but from what I've witnessed, it seems people are spending more and on things they normally wouldn't buy. I never thought I would see $1600 video cards selling out within minutes every time they come in stock.

I upgraded my desktop recently after about a decade and about choked just on the prices motherboards have reached. Pretty sure I felt my heart skip a few beats when I looked at video card prices and heard my bank account sigh in relief that everything was out of stock.

 

[sdynak]

I would hope to at least see some good packages come back but doubt it as long as sales seem to be going strong. I thought with all that has been going on I would see people saving money but from what I've witnessed, it seems people are spending more and on things they normally wouldn't buy. I never thought I would see $1600 video cards selling out within minutes every time they come in stock.

Right??

I wish I knew where folks are getting al their $$ from.. I'm obviously doing something very wrong.

 

[Beerlord]

Right??

I wish I knew where folks are getting al their $$ from.. I'm obviously doing something very wrong.

I'm with you. I must have been doing lots of things wrong for a very long time. And can't stop!

 

[Mike]

I'm excited to see what the future holds!

 

[Tombo]

A Columbia County manufacturer of pellet grills has partnered with an equity firm that specializes in building smaller companies into industry leaders.

Evans-based recteq announced its deal with Minneapolis-based Norwest Equity Partners on Monday morning, signaling that recteq could be preparing to grow.

“We’ve been fortunate to experience strong industry tailwinds and increased brand awareness which have led to continued strong revenue growth,” recteq cofounder Ron Cundy said in a prepared release. “We feel really grounded with a solid foundation for growth in 2021, and beyond, and are excited to partner with NEP to support our growth objectives.”

Financial terms of the deal were not immediately disclosed.

An equity partnership is when an investor looking for a promising business provides capital to a company desiring to grow. The company receives resources to fund growth such as a physical expansion or the development of new products.


https://www.augustachronicle.com/

 

[Greg Jones]

The link above goes to the Augusta Chronicle main page, here is the link to the specific article.

 

[okie]

I am encouraged by the two RC's remarks. But as usual, "Time will tell!" We should know by the end of the year IMO by watching the prices and comparing quality of the new products. However, sometimes the changes can be subtle and slow to be detected. For me I would watch the reliability of their products, (especially in controls) and also fine points in trim. Example? No body needs the fancy horns and medallions, but if they disappear--watch out! I would be more inclined to buy in the future if the quality goes up, wouldn't you? I also would be inclined to buy if quality remained the same but they were made in the US with US products (expecting a price hike would be reasonable then.) If you consider the cost of special packing and international shipping expense(and time)and shipping damage, then maybe that would help offset the increase cost of production.
I have a question for all: If I could produce the same product, with the same materials, but produce 100% American made. How many of you would be willing to pay $150 more for the 590? How about if I used just generic looking handles on the lid and made the medallions out of pot medal but made them all here? Think about that? Maybe RC's would like to know that? I realize how far out that may sound, but personally, I would like to see us less dependent on the folks that unleashed the Pandemic upon us all. (Don't want to get into political discussion at this point so I will cease here)

 

[Greg Jones]

How many of you would be willing to pay $150 more for the 590? How about if I used just generic looking handles on the lid and made the medallions out of pot medal but made them all here? Think about that?

Frankly, I almost bought another brand as my first pellet grill because I didn’t care for the bull horns. My wife loves them, so that won out. No regrets on my decision, but I still shake my head when I look at the horns...

I am a big fan of made here in North America, so I would pay more for that.

 

[charlesrshell]

I hope to see more accessories. I wish for WiFi & a cart for the Bullseye. Also I would pay more for American made.

 

[sdynak]

I too would have paid more for it being fully manufactured in America. It was a tough choice but I did not want to go through issues again and knew the Bull was proven.

 

[CarpeInferi]

For the current cost of the 590 a $150 bump if it were made with the same level of materials but in the US would be a steal.

As far as ditching the bull design for handles, to me that'd be a positive. I'm much more into the functionality of tools than the aesthetics of them.

 

[fullhouse32]

I am sure there are great things to come. For those that had a smoker before RecTeq just remember how happy you were when you replaced it with your RecTeq. Only good things will come from this.

PS my Bull shipped two days ago, so maybe it will be here next week.

 

[C. Keeper]

I am sure there are great things to come. For those that had a smoker before RecTeq just remember how happy you were when you replaced it with your RecTeq. Only good things will come from this.

PS my Bull shipped two days ago, so maybe it will be here next week.

I hope to have me a Bull soon

 

[CLrocks]

rectec has created an amazing brand, that attracts investors. Keeping this short and sweet, an alliance with Kingsford (and or investment firms) extends the rectec brand financially. I would speculate that this partnership may help smooth the bumps in the HORRENDOUS, supply chain disruption for most companies that rely on import products. Kingsford (for example) has brand name recognition, and makes a sensible alliance. My opinion.. we all know they are like ......... everyone has one.

 

[sweetride95]

Maybe Kingford will push RT for a gravity charcoal rig. I personally would love to see a flat top griddle setup to run with Blackstone and now Grilla. The Grilla looks good, but $700 is nuts.

 

[BadgerFan]

I would hope that both Ray and Ron would have felt the investor(s) out to see what their intentions are going forward. Maybe the investor(s) are a minority owner so Ray and Ron still get to call the shots? I had a 680 that I owned for quite some time and sold it to a guy I work with because the wife wanted something smaller. Ended up at Costco one day when Traeger was in the store and she said to buy it, so I did. I tried to like the thing but it was terrible at keeping the temp. It would be up and down by 25 degrees or so in both directions. I ended up getting the Stampede and returning the Traeger. Haven't had any issues with the Stampede and temp swings.

 

[C. Keeper]

I would hope that both Ray and Ron would have felt the investor(s) out to see what their intentions are going forward. Maybe the investor(s) are a minority owner so Ray and Ron still get to call the shots? I had a 680 that I owned for quite some time and sold it to a guy I work with because the wife wanted something smaller. Ended up at Costco one day when Traeger was in the store and she said to buy it, so I did. I tried to like the thing but it was terrible at keeping the temp. It would be up and down by 25 degrees or so in both directions. I ended up getting the Stampede and returning the Traeger. Haven't had any issues with the Stampede and temp swings.

My Traeger works fine with RT controls

 

[Jim6820]

Uhhhhh, this thread is more than two years old. The “new investors” is already old news.

 

[Gonefishin]

Does that make them old investors?

 

[Jim6820]

Does that make them old investors?

Yep, I think it does.

Actually, this thread popping back up prompted me to dig a little deeper into who now owns Recteq. There are three investors: Norwest Equity Partners, Norwest Mezzanine Partners and Yukon partners; all “private equity” firms. It appears that Northwest Equity Partners is the primary investor and the other two are subordinate or “mezzanine investors.”

Typically, “mezzanine” investments are a form of high-interest loan and burden the company with significant debt requiring scheduled repayment. Obviously, when a company has significant “mezzanine debt,” there is pressure to increase return on investment. That may well explain Recteq’s recent and very significant price increases. Ya gotta pay the piper!

What does this mean? Probably that prices will continue to go up, customer service will not be as generous in replacing defective or questionable parts and new products will introduced in hopes of increasing sales volume.

Is that bad? Maybe; maybe not. If RT manages to stay ahead of the debt curve without sacrificing quality, things should go OK. If not, the investors will want their pound of flesh and RT could be swallowed up by some other major grill maker in a buyout. Only time will tell.

The foregoing was not intended as investment advice and was offered strictly as a personal opinion.