BRS acquires Marine Depot? WOW!

[GillMeister]

I know I got attacked for my views on this, but I'm standing by my opinion.

BRS is as customer focused as any company supporting our hobby. I love the service they provide and they are still my go-to source. That customer focus is bound to change now that they have private equity investment. Eventually the guys that started that company, who by the way are passionate reef enthusiasts as well, are going to be enticed or forced out of the organization and the culture will change. MD is out of the picture and other dominos could soon fall.

It's bad for us, the consumer. That's a fact.

 

[rtparty]

I know I got attacked for my views on this, but I'm standing by my opinion.

BRS is as customer focused as any company supporting our hobby. I love the service they provide and they are still my go-to source. That customer focus is bound to change now that they have private equity investment. Eventually the guys that started that company, who by the way are passionate reef enthusiasts as well, are going to be enticed or forced out of the organization and the culture will change. MD is out of the picture and other dominos could soon fall.

It's bad for us, the consumer. That's a fact.

Ryan and Andrew started BRS. Andrew, to this day, has zero to do with reefing. Doesn't care a bit for it.

Ryan and Andrew still co-own BRS. I've verified this from multiple sources. They are THE owners. That's a fact.

 

[GillMeister]

Ryan and Andrew started BRS. Andrew, to this day, has zero to do with reefing. Doesn't care a bit for it.

Ryan and Andrew still co-own BRS. I've verified this from multiple sources. They are THE owners. That's a fact.

So, what did the PE firm get for their investment?

 

[Cell]

So, what did the PE firm get for their investment?

The obvious answer would be less than 50% of the company.

 

[rtparty]

So, what did the PE firm get for their investment?

I didn't ask for exact details that are private. I simply asked who owns BRS and the answer was clear. Ryan and Andrew co-own BRS.

I believe @zalick stated something about the PE firm getting social media revenue in some way?

 

[dank reefer]

When the BRS carcass day comes, to the above member, it will be back to old school, using swimming pool supplies, baking soda, etc., hands on approach. Who needs all the fancy equipment anyways. The coral and fish don’t have any idea you have an Apex running or how many times a day they are dosed. They just want to eat. I’m not worried as long as there’s salt.

When that day comes you will still have Saltwateraquarium.com and premiumaquatics.com

 

[Sleepydoc]

Again I’m amazed at the amount of wailing and gnashing of teeth here over something that’s completely unknown. (Or the people claiming that they know what’s going to happen but are actually just making assumptions.)

regardless of who owns, controls or has a financial interest in BRS, either they’ll keep going like they are, they’ll change for the better or change for the worse. If they change for the worse then I’ll start buying supplies somewhere else. If they stay the same or get better, I’ll be happy. For now, it makes no sense to change anything because of what I am afraid may or may not happen.

 

[zalick]

I didn't ask for exact details that are private. I simply asked who owns BRS and the answer was clear. Ryan and Andrew co-own BRS.

I believe @zalick stated something about the PE firm getting social media revenue in some way?

That was my inference from reading Betrams press releases, business model, and team members on the acquisition.
You make far more money being “Blippi” on YouTube than selling widgets from a warehouse.
BRS has a very devoted and invested audience on YouTube whose eyeballs are worth a ton of $ and there is relatively minimal overhead relative to long term revenue.
I think Betrams skill and technology is going to make the YouTube/social media part of BRS really take off.

 

[GillMeister]

That was my inference from reading Betrams press releases, business model, and team members on the acquisition.
You make far more money being “Blippi” on YouTube than selling widgets from a warehouse.
BRS has a very devoted and invested audience on YouTube whose eyeballs are worth a ton of $ and there is relatively minimal overhead relative to long term revenue.
I think Betrams skill and technology is going to make the YouTube/social media part of BRS really take off.

Wow. Business models have sure changed if this is true. I hope that what you're saying is true because that means the worst thing that happens from this acquisition is a loss of competition and selection.

Hopefully other vendors will step up and offer some of these manufacturers another outlet to sell their goods.

 

[kecked]

There goes reef oct pumps

 

[rtparty]

There goes reef oct pumps

Reef Octopus? Like the VarioS and Octo Pulse pumps?

 

[Sleepydoc]

There goes reef oct pumps

??? Both Marine Depot and Bulk Reef supply carry these. Why would BRS change now?

 

[fromjuan]

This definitely does not have the consumers best interest in mind. I will only support other sites going forward...

 

[rtparty]

This definitely does not have the consumers best interest in mind. I will only support other sites going forward...

Who would you have preferred bought out Marine Depot?

 

[Ldballoon4]

BRS now only sells 1.2 KG of AF Buffer, MD had the 5kg. for sale.

 

[Jon Warner]

Who would you have preferred bought out Marine Depot?

Some would have hoped for a new buyer who would continue the Marine Depot business.

 

[rtparty]

Some would have hoped for a new buyer who would continue the Marine Depot business.

So likely someone from outside the industry?

The numbers definitely wouldn't support anyone jumping at MD to buy them. Since 2014 BRS has gone from smaller than MD to 3x larger. I can't imagine MD had stellar finances/growth in any way. JMO

 

[Sleepydoc]

Some would have hoped for a new buyer who would continue the Marine Depot business.

Can you expand on that? As a business, the indications are that Marine Depot was failing and the owner had been actively looking to sell for 5 years. During that time, either no other buyer had come forth, or if there was one they either weren't willing to pay what the previous owner wanted or he did not want to sell to them for other reasons.

It's possible a private equity firm could have bought MD, but I doubt people would have been happy with that, either.

BRS is solely focused on reef aquaria as opposed to larger companies like PetCo, so they are arguably better than the other options. There are other companies like premium aquatics, but none of them appear to be big enough to purchase MD, so they don't appear to have been viable options.

 

[Jon Warner]

Can you expand on that? As a business, the indications are that Marine Depot was failing and the owner had been actively looking to sell for 5 years. During that time, either no other buyer had come forth, or if there was one they either weren't willing to pay what the previous owner wanted or he did not want to sell to them for other reasons.

It's possible a private equity firm could have bought MD, but I doubt people would have been happy with that, either.

BRS is solely focused on reef aquaria as opposed to larger companies like PetCo, so they are arguably better than the other options. There are other companies like premium aquatics, but none of them appear to be big enough to purchase MD, so they don't appear to have been viable options.

No, I Literally just meant a new buyer.

MD changed over the years. We've been a vendor for more than a decade. They used to have their own warehouses and massive shipping capabilities. In recent years, they've streamlined the operation, eliminating warehouses and functioning more as a marketing company than a traditional brick and mortar e-tailer.

I remember seeing lines of UPS trucks around MD, picking up the daily orders and not the little ones that run up and down our streets.

MD has a great and historic name. As I said, it would have been nice for a new buyer to come along and take all the positive things about MD and seek GROWTH by re-opening warehouses, etc.

Don't get me wrong, BRS has been fantastic for the hobby. Educating customers is the best way to develop customers that stay in the hobby longer. No doubt.

 

[SeeFu]

BRS has always treated me well. if i buy something and there's a problem, thye replace it. MD total opposite. I buy something from them and it comes defective, they tell me to goto the manufacture to get it fixed. i stopped buying from them after that.