Hoffmanns eye Missouri Meerschaum corn cob pipe plant for potential acquisition
The corn cob pipe capital of the world may soon become the Hoffmann corn cob pipe capital of the world.
Missouri Meerschaum Possibly Being Sold
- Thread starter Waning Embers
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Could be a good thing depending on whether the buyer lives up to his word. There's an old general store tucked away in about the most rural part of my already-rural county, and it's owned by a wealthy benefactor in another part of the state who just likes buying up stuff like that to keep it around.
My initial thought was... at least it's an American (and a local one at that) interested in buying it.
When I read about the "Chicago based investment company" I get a little nervous. The Hoffman's seem to have a nice and varied portfolio of properties, but knowing that the city is already planning on rezoning... well... Let's keep our fingers crossed.
Definitely a story to watch.
When I read about the "Chicago based investment company" I get a little nervous. The Hoffman's seem to have a nice and varied portfolio of properties, but knowing that the city is already planning on rezoning... well... Let's keep our fingers crossed.
Definitely a story to watch.
They never change the company … until the first downturn. Then often one discovers they value the return on investment more than the history and traditions of the company.
Fingers crossed for Missouri Meerschaum.
Fingers crossed for Missouri Meerschaum.
That was the part that got my attention too. As well as the part where the current owners said something to the effects of "if they didn't promise to keep the factory running, the answer was probably going to be a hard no".
Reading between the lines, best case scenario is probably having the factory turned into a "pipe themed amusement park/history tour" - seems like the Hoffmans are in the commercial/tourism entertainment industry.
That’s what I was thinking. A gift shop, tour, nice little cafe/restaurant……… an on site distillery would be cool- using the corn from the actual cobs…….. “Missouri Moonshine “…………..
Things change. But just cause someone wants to buy something doesn't really necessarily mean that much.
I've seen this scenario before.. Mark my words: If this deal goes through, MM will no longer make pipes within 5 years of closing. Probably much sooner given the anti tobacco climate we are experiencing. That property's highest and best use is something else now....
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Why would someone buy something with plans for closing it? My guess is the people that own it are ready to cash out and looked for a buyer.
I can think of a few great reasons but, I doubt any of them apply to this possible acquisition.
Yes, there are situations where strategically that makes sense. I don't see any strategy here.
Possibly lower tax area to start a more profitable operation or to move the equipment to a location that would be less expensive to operate.
Doubt it. Local material supply. I also suspect there is a lot of manual labor so maintaining the local, experienced workforce would be of paramount importance. If someone were to do all your proposing, be cheaper to just start up a competitive company.
Had I not experienced both scenarios at different companies, would never have mentioned it. Using the facility for a more profitable venture is very possible.
I seriously doubt real estate in that neck of the woods is scarce or expensive. I suppose anything is possible but it doesn't seem likely in this scenario.
The Hoffmanns appear to be building a "destination" area, the target market being tourists. The way RV's are selling, people a retiring at a younger age, I think they, the Hoffmanns have a viable plan which will have a positive economic impact on the area. The "pipe works" would be a draw, probably one of the center pieces of their dream. It's an idea that has worked well in other areas.