Bye bye, Jegs...

https://www.prnewswire.com/news-rel...CvYJNWzMxQUgP1e6mAS32GIBbYytMtMAjq-_ToJ8


Greenbriar Announces Acquisition of JEGS Automotive

RYE, N.Y., Feb. 24, 2022 /PRNewswire/ -- Greenbriar Equity Group, L.P. ("Greenbriar"), a leading middle market private equity firm today announced that funds managed by Greenbriar acquired a majority position in JEGS Automotive ("JEGS"), a leading online national retailer and distributor of high-performance aftermarket auto parts and accessories. The investment, which represents the first commitment of institutional capital to JEGS, aims to support continued product and market expansion while enhancing its technology and distribution capabilities. JEGS is Greenbriar's eighth platform investment completed in the last twelve months.

Ahhhhhh , Jeeze.
We all have to wait and see , but not many of these acquisitions lead to enhanced products or support or service.

Well this sucks ! I cant blame jegs though for wanting to get out. I guess we'll wait and see.

It may not be all bad. Was it 2020 or 2021 when their operation blew up because of an IT incident, the site was very slow and unresponsive, they had to replace a bunch of computers for employees the guy told me when I was trying to place an order. Having someone invest in the business can be very positive to help it operate at scale.

Enhancing distribution? I thought Jeg's already has great distribution. Maybe Greenbriar is going to use Jeg's capability for something else?

I haven't forgotten when Jegs bought up the local speed shop chain (Ramchargers) for the sole purpose of killing it.

Ramchargers was FAR from perfect but sometimes any local resource is better than nothing.

Time will tell how this plays out, hopefully for the better.

Equity firms do not invest in businesses to spend money on them as a rule.
Having someone invest in your business is one thing.
Having a hedge fund put their filthy hooks into one is quite another.

"The Coughlin Family, which has successfully guided the Company's expansion across three generations, said, "After more than sixty years in business, our family was very focused on identifying a growth partner who shares our values and has a clear vision for the future of JEGS. We've found that partner in Greenbriar, and we look forward to remaining significant shareholders alongside them."

I don't think there is anything to worry about.

Having worked in PE owned companies for the past decade, I have a different perspective. I've personally and professionally benefited from the investment that came with the PE ownership. The companies would not have grown and hired without that investment.

Equity firms don't buy businesses to make them better for the customer. The generally buy them to profit from dismantling them. Not unuslay for the third generation of a family business to be disinterested in continuing to run/own them. They have lived a nice life from their predecessors hard work and usually have no interest in it.

Exactly....look at what the third generation of the Napp family did for drag racing at Raceway Park (Englishtown) They reduced one of the best 1/4 mile in the country to be used for burnout contests??? The only interest they have in the property is what will get them the most money....Rent it out to park junk cars ??? THe previous generations must be rolling over, they invented the JR Dragster at this track....and now this??? Sad but everything runs its course eventually

I wouldn't convolute a PE investment/ownership with how a founding family/small private ownership chooses to take an offramp from the business they built. Often the 'hero/charismatic' model a founder operated under doesn't translate to any other owner, no matter who they are.

Thats exactly what happened to Raceway Park / Englishtown.. third generation has the money via earlier generations and had no desire to run the strip... I see Tony / N2Omstr beat me to it! IMO Jegs has been going down hill for awhile now., customer service is awful. I buy most of the parts I need from Summit.

Haven’t used them in years….. poor service to the west coast and numerous backorders with zero notifications killed it for me.

I've heard that line every time a family cashed out of an old line business and sold to these vultures. How soon before they start cutting the slow movers and Mopar stuff?

Make a list of all the companies swallowed up by PEs that have done a better job for the racers and customers after the buy out. How many iconic American parts and pieces now being made in China and aren't as good. How many knowledgeable people shown the door. How many great but slow movers disappeared from catalogs.

I worked at Jegs in the late 80's through the early 90's, and have friends working there to this day. I have never heard anything about Jeg buying the Ramchargers. Where did you hear that at? Trust me working there when Mail Order was just getting rolling, the only competition we paid any attention to was Summit, keeping in mind they were 2 hrs up the road.

Look no further than Cabelas. They went down hill after the brothers sold to Bass Pro. My humble opinion I buy most of my stuff locally from a friend that owns a speed shop or from Speedway Motors since I’m now most into street rods.

Bye bye, Jegs, hello Summit.

I look for things to go down hill, but that's just my opinion. Hopefully they at least make the website easier to search for stuff, it's one of the worst places I shop at to find stuff.

I thought that was Livernois Motorsports but my memory is fuzzy. I remember they were briefly going to keep the Livonia one open but it closed as well, and is now a Indian/Victory powersports dealer.

I've worked for two , and that has not been my experience.

This is absolutely not a good move for us that buy the parts....

You can bet that a NY company that owns an aftermarket car parts company, it will have grave consequences for us end users.

NY hates car modifications. It hates people working on cars.. It attacks garages over vehicles they inspected and passed they do not feel should be on the road. No junkers, No hot rods, No lifted trucks, etc....Its always coming up with new laws to hurt car modifications....Cruise nights outright banned or policed to the point of not going....NY SUCKS!

It is a gestapo state with a nasty agenda, and they hate anything fun....Mark my words, they will kill that business slowly but surely.


https://www.bizjournals.com/columbus/news/2022/02/24/jegs-acquired-by-greenbriar-equity-group.html

This. In the New Vehicle Dealership Service and Parts world, it’s known as “Build it, will it, kill it.”

Folks that used to work at Ramchargers told quite a few people (wasn't just me) Jeg's bought out the chain to kill it.

This happened decades after mail order just got rolling.
Maybe it was a lie, but I had no reason to doubt anyone.

I'll be the first to admit I hadn't actually associated with anyone from Ramchargers for many years prior and maybe I was lied to.
(Wouldn't be the first time).

The Waterford Ramchargers (which started as the Pontiac location) became Payless Shoes....

I'm not mad or anything, it's just business, but it'd be nice to just go somewhere to get an accelerator pump diaphragm or whatever.
it was kind of like a convenience store.

Number one reason I quit using them. Plus Jegs did away with Buckeye.

Summits site is easy and useful as a reference. Jegs is like 6 year olds put it together.

I agree it cannot be good news Jeg's has sold to somebody that cares not about cars but only making money. And I buy more form Summit just because the summit website is so much easier to find things. I just don't like sitting on the phone forever to talk to a person.

Get investors, and borrow money to acquire the company. Pay back the investors, and transfer the debt to the company. Pay themselves from the company for putting the whole scheme together, pay themselves salaries and fees for cutting costs, never investing or improving anything, and if it all falls apart, they walk away with golden parachutes. There's never innovation, or risk taking. It's all extraction of capitol.

Private Equity is exactly as it sounds. A group of PRIVATE wealthy people using their wealth to make themselves and their PE company MORE wealth. It's WEALTH building plain and simple. I'm sure Jegs made out, their employees and customers not so much.

But will they fix the horrible website?

Jeg Coughlin III, President of JEGS, added, "The entire JEGS team has never been more excited about the opportunities that lie ahead, and we look forward to partnering with Greenbriar and their extensive network of sector experts as we focus on enhancing our customers' online experience, onboarding new products and services, and expanding our reach through organic and M&A-led growth."

looks like summit will be jacking up there prices now ....... if jegs close

What makes you think they are going to close?

I think that is the least likely outcome from their sale of the majority interest of their company.

Probably true.

But what has happened to the MSDs, Edelbrocks, etc. after being taken over?

Try to buy a set of Edelbrock 60197 or 60919 heads. Check the country of origin on some of the MSD stuff being sold now.

Yep sure, there is a laundry list of companies that have gone down this path and are no longer. Just to name a few Toys R Us, Kmart, Sears, Service Merchandise, Children's Palace, etc. These hedge funds thought they could do it to Gamestop and AMC too. If you're unfamiliar with their tactics you should read up on short selling.

Plus all of the rich people live in Rye. I'm so glad I left that miserable place.

Just enhanced prices to make for the costs of the Acquisitions. I’ve yet to see a company that keep pricing at or below by the time the new owner changed the locks on the place. Betting 5% increase and it will passed off as ‘inflation’.