The Largest Independent Lab is no more independent

[Chris Ryser]

New Merger news, from a reliable source: but not from a official press release.

The Largest Independent Optical Lab Is No More Independent

From their website: Pech Optical is a full-service independent, family-owned laboratory located in Sioux City, Iowa. With approximately 2,100 Rx jobs rolling off the assembly line every business day, Pech handles uncut and cut & edged lenses, as well as frames and quality sun wear lines in Plano and Rx lenses.


The company was sold to Essilor for an undisclosed amount and the transaction closed yesterday December 9th, 2008.

[Jacqui]

D-----d idiots !!!

[MarcE]

I bet each of the Pech boys got about $1.5M each. I should be so stupid.

[Fezz]

If this is true, I have very mixed feelings.

I hate to see yet another indy go to the dark side. But, what a dream come true for the Pech family. It must be nice to see all of your hard work, dedication, sweat, tears, emotions and financial turmoil payoff(hopefully really, really well!)!


I hope that the hard working employees make out in this deal as well. The folks there have always been very nice to deal with. A fellow Optiboarder who works for them, Kevin W, has gone above and beyond in helping me. Best of luck!


:cheers::cheers::angry::cheers::cheers::D

[drk]

Not to specifically single out the excellent "Pech boys" (I've used them, and I have high praise), but that's what may be wrong with U.S. business today: "the big corporate cash-out", driven by a new "wealth ethic" versus "work ethic".

Sure, they're going to stick around and work just as hard, but a lot of the profit is now going to another entity. And there is NO WAY they are going to be able to care like they did before.

Listen, it's (bad) human nature to work very hard when you are totally invested, and slack off when not. No one is exempt from that nature.

American business was built on ownership and pride. Employees with "ownership" mentality are very rare and don't last long, as they move up quickly.

They've totally earned that capital gain: they built the business, I'm sure, with blood, sweat, and tears. I'm just sorry that a conglomerate is the only buyer available.

Maybe they don't have heirs to which to pass the business.

Maybe no one else could raise the immense capital to purchase, what with the "credit crisis", and "big e" has assets.

Maybe they're bearish on the U.S./world economic outlook and wanted to get what they could, when they could.

Maybe they're going to DisneyWorld!

I don't know where anyone is going to park $1.5 "very large", but I hope they can hold onto the wealth they've created. I wonder, with their innovative, forward-looking operation, if their wealth would have been better preserved and invested in their own operation? Tough call, but their call.

Consolidation: bank on it.

[MarcE]

I heard from my Pech rep today. This is a partner lab deal - like Interstate and others lately. I have seen no difference in operations from Interstate since the "partnering". Sure - mixed feelings.

Doug Pech will be staying on and has a long contract w/ Essilor from what I hear.

The announcement was Saturday night to the staff. I'm surprised that it took took 3 days for Chris to find out the news.

Even the White House staff can't keep a secret that long.

[Judy Canty]

Dare I say it??? WE'RE NUMBER 2!!

[drk]

Judy, my receptionist used to work for Luzerne. More power to ya.

[Johns]

I heard from my Pech rep today. This is a partner lab deal - like Interstate and others lately.

If I hear the word "partner" one more time...:hammer:

[Jacqui]

Dare I say it??? WE'RE NUMBER 2!!

Congratulations. Don't sell out to the Evil Empire !!

[Judy Canty]

I sure hope not! I LOVE where I'm working.

[MarcE]

If I hear the word "partner" one more time...:hammer:

Been talking to your Lux rep lately??:D

[chip anderson]

Don't know about yours, but my hiers would probably rather inherit 1.5 mil. than an interest in an optical lab, or dispensary, or much of anything unless the value of the anything was a great deal more than this. I know that if I could walk out the door with 1.5 mil. in my pocket, I'm pretty sure I would never look back.
Maybe if I had family interest in something , like Zeiss or one of the companies that was doing well for the last few hundred years I might feel differently.

Chip

[Johns]

Been talking to your Lux rep lately??:D

Lux? Isn't that some kind of vacuum cleaner or something?

[Johns]

Don't know about yours, but my hiers would probably rather inherit 1.5 mil. than an interest in an optical lab, or dispensary...Chip

Excellent point! :cheers::cheers:

Now here's one for you: How about if it was throwing off $400k to you each year?

Go for the sure thing?

I would.

[AWTECH]

When considering to sell or not to sell, many factors are considered.

If you look at the American big 3 auto companies, the only one that says they do not need the money themselves is Ford. Guess which American auto company is still controlled by the founding family?

(The reason Ford is a part of the auto bailout is to help the industry but they do not plan on using any of their portion of government bailout money. They need the parts suppliers to survive.)

[Johns]

If you look at the American big 3 auto companies, the only one that says they do not need the money themselves is Ford. Guess which American auto company is still controlled by the founding family?

(The reason Ford is a part of the auto bailout is to help the industry but they do not plan on using any of their portion of government bailout money. They need the parts suppliers to survive.)

And the fact that theirs been competition from the foreign manufacturers has helped to (somewhat) keep prices still within reach of many consumers. With the optical industruies, every "partnering" means less competition from those pesky little independents.

Is it too late to support the independents? Do we support them to the point that they are a juicy "partner" target, and then we can all say "congratulations" to another (former) indy owner with a big check in his hand?

[HarryChiling]

Is it too late to support the independents? Do we support them to the point that they are a juicy "partner" target, and then we can all say "congratulations" to another (former) indy owner with a big check in his hand?

Bingo, I'm not supporting anyone this isn't welfare. If they do the job right at a fair price and I get it in a timely manner then I do business with them. I could care less who owns the operation anymore especially sicne the bigger they get the quicker they sell.

[drk]

I think that's right, Harry. It's too difficult to play politics most of the time.

[optical24/7]

Bingo, I'm not supporting anyone this isn't welfare. If they do the job right at a fair price and I get it in a timely manner then I do business with them. I could care less who owns the operation anymore especially sicne the bigger they get the quicker they sell.

I agree Harry, but will add I won't use a VSP owned lab, ever. I don't care if they were the cheapest fastest or whatever in the country!

[Chris Ryser]

Is it too late to support the independents? Do we support them to the point that they are a juicy "partner" target, and then we can all say "congratulations" to another (former) indy owner with a big check in his hand?

Actually they do not only take the juicy ones. If one is geographically situated where they smell an advantage and the owner does not want to sell, they starve em out by offering very unusually large discounts to the local customers until they all go for less money to one of their labs elsewhere.

(See the post made by such a lab owner about 2 years ago on OptiBoard if you can find it)

[drk]

I will make a distinction:

It's foolish to feed your enemy. "Supporting people who support you" is politicking.

While it's sometimes difficult to discern who your enemy is, it's generally easy.

Knowing who your true friends are is always more difficult!

[HarryChiling]

I agree Harry, but will add I won't use a VSP owned lab, ever. I don't care if they were the cheapest fastest or whatever in the country!

, I could get with that. I don't use any labs that are VSP so it's not an issues here.

I will make a distinction:

It's foolish to feed your enemy. "Supporting people who support you" is politicking.

While it's sometimes difficult to discern who your enemy is, it's generally easy.

Knowing who your true friends are is always more difficult!

Agree, I don't know if I'd call Essilor my enemy, they have always provided me good service and their products are great the price is decent. They also provide more tools, education, and research into our industry than they are given credit for. Sure I wish more came towards opticians but it's appreciated either way.

[MarcE]

I should tell you that I have no knowledge of an actual amount paid - $1.5M per partner or otherwise. I just threw out a number.

I do have a "feeling" that Pech was highly leveraged.

I do have knowledge that Bob Pech (father) is 70+ y.o.

I do have knowledge that Doug Pech (son) will be staying on as CEO/director under a long-term contract.

[MarcE]

How about if it was throwing off $400k to you each year?

But not all business ventures throw off as much cash as yours do.

$400K indeed! We think you are too modest.