“We plan on remaining in [the auto and powersports] business today. We need to understand the pool and spa and medical equipment markets because we don’t know that at all,” Olivier said.
Near term, dealers shouldn’t worry about price increases, and pricing decisions won’t be made hastily.
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"We've never missed a payroll, we've never missed a payment." -- ARI CEO Roy Olivier |
“We don’t know enough about the model yet to make that decision,” Olivier said, but if there is a price change, “We’ll test it before we do it. We’re not going to just start changing prices.”
ARI has acquired 11 other companies in the last 14 years, and has a record of positive cash flow. That was music to the ears of 50 Below employees.
“Actually, we got applause” when the acquisition was announced to 50 Below employees, he said. “We’ve never missed a payroll, we’ve never missed a payment.”
Provided it goes through, the acquisition will resolve all of 50 Below’s issues with state and federal taxing entities. A resolution to a lawsuit in which 50 Below asked to be let out of a contract with credit card payment processing company SecureNet is expected as part of the deal, as well, but ARI has its own payment processing contract in place.
Olivier is optimistic about the possibilities that come from ARI’s cash flow management and 50 Below’s platform and customer service.
“We are really, genuinely excited about putting these companies together,” he said. “The combination is where one plus one is going to end up equaling three.”
