More Rodenstock Blues

[Andrew Weiss]

As of December 6, Rodenstock North America is no longer providing finished Progressive AT lenses from its plant in Columbus. The AT will now be available from them only in semi-finished form. For most of us who don't have finishing labs, this will most likely mean a price increase.

There are some small surfacing labs that make the ATs and that charge less than the bigger labs. In our area (New England), two are Independent Eye Care in Danvers, MA (866-378-5367) and Opticalworks in Maine (877-678-4271).

In a manner typical of Rodenstock at its worst, they did not communicate this change to any of their accounts. Rodenstock's customer service employees were informed on December 6. I only found out when I called to order a pair of AT lenses.

It looks like this also means an end to Rodenstock's grand experiment in making fully-molded, unsurfaced progressives that began 7 or 8 years ago with the formation of 2C Optics in Georgia. RIP.

[Chris Ryser]

It looks like this also means an end to Rodenstock's grand experiment in making fully-molded, unsurfaced progressives that began 7 or 8 years ago with the formation of 2C Optics in Georgia. RIP.

There are rumors flying around Europe that Rodenstock has been sold to some group with money coming from Swiss banks. No official confirmation available at this point.

[drk]

I toured this plant in my hometown, here, in Columbus. It was truly amazing. What a waste. Logistics killed the lens, I believe.

[jma]

Something is up with rodenstock, who knows what. Their rep just came by to say goodbye, at least for now. All reps were let go in a 3 min. conference call, they were told they could freelance and continue to rep them if they wanted. in her words: no notice, no severance, no nothing....
Fantastic timing, I say...

[Fezz]

I too got the news from my Rodenstock rep (southeast pennsylvania). Damn shame really. Let go with no notice, etc. Been there myself and it hurts.

Fezz
:cheers:

[ziggy]

I got a letter about 2 months ago that said all future payments were to be made through a 3rd party. I thought that was kind of odd , but it falls into place.

[jma]

I got a letter about 2 months ago that said all future payments were to be made through a 3rd party. I thought that was kind of odd , but it falls into place.

Greenfield Credit; I think they make credit available where banks and other mainstream institutions don't want to venture, this doesn't look very good, you think they maybe closing shop? It would be bad news for me,(and quite possibly many others), I've relied on them for a great number of semi-finished lenses at a pretty decent price.

[ziggy]

My first thought was they were bankrupt, i've seen judges set up a third party to deal with AR-AP., but i didnt see any thing in the news. Something just dont smell right.

[coda]

I'm sure the parent company (at least I think Rodenstock NA is still owned by Rodenstock GmbH) probably took quite a whalop when Germany changed it's ophthalmic coverage. That leaves less money for the various divisions to play with. In addition the parent is looking to go public in the next couple of years (according to their website), that drives cost reduction too.

Of course one could look at this from a different direction that's more management centric. As Sola USA was stumbling and fumbling on it's way down from the second largest player in US lenses to where ever it is now Jim Cox was division president and John Potocny was vp of marketing and sales. Both left (or were asked to leave depending on one's interpretation) and amazingly ended up at Rodenstock NA. I believe they're both still there (though a quick web search indicates that someone named John Potocny resides in Novato CA, very close to the old SOLA USA headquarters, so maybe he's been released as well).

[jma]

According to the rep those two are still there, don't know if either one of them was the bad news announcer.

[Chris Ryser]

The Royal Bank of Scotland’s Leveraged Finance Team in Germany Acts as Mandated Lead Arranger in the MBO Of Spectacle Manufacturer Rodenstock



30 September 2003

The Royal Bank of Scotland’s Leveraged Finance team in Germany is acting as mandated lead arranger, together with Barclays, to structure the debt package for the buyout of spectacle manufacturer Rodenstock. In July, Permira had purchased jointly with the company’s executives, a 49% stake in Rodenstock GmbH, the company comprising the core spectacles and frames activities. The manufacturer’s family-owned holding company will hold the remaining 51% stake.

The 125 year-old family-owned company Rodenstock is Germany’s largest manufacturer of glasses, and the leading brand in Germany. As market leader, with growing turnover and profit, Rodenstock employs 4,800 staff. Permira’s investment will enhance Rodenstock’s equity position.

Dan Schweizer, Director Leveraged Finance, and responsible for the structuring of the transaction by The Royal Bank of Scotland explains: "Due to the challenges related to the German health reform, the leverage of the transaction is moderate. We are convinced that Rodenstock will further strengthen and enlarge its position as market leader in Germany on the back of its product quality, innovation and through the entry of Permira, one of the leading Private Equity Houses."

Notes to editors:

The Royal Bank of Scotland, Leveraged Finance is part of the bank’s Structured Finance business, which operates in seven countries and ten locations. The Royal Bank of Scotland Structured Finance operates as a lead arranger and underwriter for syndicated loans, project and export finance, leveraged and acquisition finance and property finance.

• For the year 2002, RBS was the No. 1 arranger of European loans for leveraged buyouts - by number and value of loans arranged, according to data from Thomson Financial.
• The Royal Bank of Scotland is also the year’s No.1 arranger for mezzanine finance (source: Dealogic). RBS Leveraged Finance has 80 professionals operating from five European and North American centres - London, Paris, Frankfurt, Madrid, Milan and New York.

The Royal Bank of Scotland, Leveraged Finance, Germany was officially launched in 1999.

The German team primarily focuses on the structuring of loans in the segment of medium-sized and large leveraged buy-outs. In total RBS Leveraged Finance Germany has completed 40 transactions within four years committing almost Euro 3 billion. 17 professionals work in the Frankfurt office. In 2002 the Bank participated in 80 per cent of the transactions in the segment of large and medium sized buy-outs (above Euro 100 million). In 2003 to date the bank has supported four of the five largest buy-outs in Germany in a leading position, e.g. the buyout of Tele Columbus by BC Partners and Rodenstock by Permira (each as Mandated Lead Arranger) as well as the buy-out of BertelsmannSpringer by Cinven/Candover.

The Royal Bank of Scotland, Leveraged Finance, Germany also covers the markets in Austria, Switzerland and the Nordic markets.

[peter]

As is often the case with family business the first generation build the business,the second generation consolidate the business and the third generation ruin the business.This is what is happening here,Randolphs kids have no interest.

[Andrew Weiss]

Rumors had been floating about in the "opti-dirt" that Rodenstock was giving its NA division final notice that it had to start showing a profit or it would be cut loose. Those rumors were current about 2 years ago. I have no idea what steps Rodenstock Germany took after that, but in the US I noticed fewer and fewer products being offered (one I missed in particular was the Cosmolit 1.56 CT28 finished molded lens -- a great product at a bargain price).

I tend to agree that management has had a big hand in burying Rodenstock in the US. They had an opportunity to become a major player with the molded AT Progressive and single-vision lenses, and they blew it with lousy marketing at least, maybe other things as well.

At the moment the semi-finished lenses are still available. As far as I know, all that's closed down is that marvellous plant in Columbus that drk saw. I have a video from the old 2C Optics showing how their process works, and it's pretty amazing. What a waste.