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PRESS RELEASE - Semroc purchases Estes-Cox

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Carl

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PRESS RELEASE - Semroc Astronautics Corp - Knightdale, NC

Semroc purchases Estes-Cox

Amidst numerous phone calls and emails over the past few weeks regarding the imminent purchase of Estes-Cox Corporation (Penrose, CO) by Semroc Astronautics Corporation (Knightdale, NC), we have tried with much difficulty to dispel the rumors, but they have been very persistent, particularly among the model rocket "hobbyist" market. We had been aware for several weeks that the Estes-Cox Corporation was up for sale, but had no interest in acquiring the company. Our Board of Directors began almost daily discussions about an Estes-Cox purchase, but had to keep the deal a closely held secret. Fearing a possible backlash and increase in the final purchase price, our legal team had advised us not to release any details until after the deal was complete. We had to consummate this as an outright cash purchase, since a merger did not seem feasible or beneficial for either party.

Marketing Vice President Bruce McLawhorn set up a visit to Wal-Mart (Bentonville, AR) to talk with their sales team about the potential purchase since we were unsure how this would impact the future relationship between our three companies. In the current economic times, it is important to ensure all supplier relationships would continue in case of a severe downturn. Some of our best customers have long-term relationships with both Wal-Mart and Estes-Cox and we did not want to cause any adverse impact on them. A Semroc purchase would have to have absolutely no impact on our customers or we would not have considered it. After assuring ourselves that the purchase would have a negligible impact on all the other parties, the Directors gave their go-ahead for the deal, but only if it would make sound economic sense for Semroc.

We began a careful and methodical study of our product line to see if there was a potential fit for Estes-Cox in our line. We dismissed most of our products as potential candidates since alternatives are currently available from Quest Aerospace Inc. (Pagosa Springs, CO) and Aerotech Consumer Aerospace Division (Cedar City, UT). We decided to concentrate on the Astro-Jr (Catalog # KA-4 List Price $11.50). This kit was created by Semroc as a downscale of the very popular Astro-1 that was designed by Centuri Engineering Company (Phoenix, AZ) in the late 1960's. Unlike most of our product line, it requires a 13mm engine for power. Since this particular engine line is only available now from Estes-Cox, we had very few options left. Our ThunderBee (Catalog # KA-1 List Price $7.00) was a second candidate, so the deal had to be made if we were going to get either off the ground. Future products using the 13mm technology would be a good marriage between Semroc Astronautics products and Estes-Cox products, so the decision was made to make the purchase as soon as possible, before it leaked to the public.

Bruce made the historic phone call to Customer Service/Production/Print Shop/Shipping Vice President Sheryl McLawhorn yesterday from Wal-Mart. When he said that his contact at Wal-Mart, Store Associate Alice, confirmed that they had two packs of the A3-4T engines left for $4.97 each, Sheryl said, "Buy them! And stop by Bojangle’s on the way back to Corporate Headquarters and pick up some of that Dirty Rice that Bill Eichelberger was talking about last year." So after years of using up our old stock of the Estes Industries, Inc. engines, Semroc finally took the leap and purchased some of the newer Estes-Cox engines and are pleased to announce that early test results have been very favorable. We are also considering purchasing a few of those Estes-Cox shiny rockets that are already put together, since we are so busy releasing new kits that we don't have much time to build rockets anymore.

For further information about this purchase, we will attempt to answer your questions on Ye Olde Rocket Forum or The Rocketry Forum during a live Q&A session until midnight April 1, 2009.

For immediate release

Carl McLawhorn
President
Semroc Astronautics Corp.


March 31, 2009
 

jdbectec

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You realy had me going Carl! I can't tell you how happy I was!
 

WiK

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When he said that his contact at Wal-Mart, Store Associate Alice, confirmed that they had two packs of the A3-4T engines left for $4.97 each, Sheryl said, "Buy them! And stop by Bojangle’s on the way back to Corporate Headquarters and pick up some of that Dirty Rice that Bill Eichelberger was talking about last year."
How did the acquisition of the Dirty Rice work out for Semroc? Is Cajun food a likely path forward for the company in these tough economic times? Will it be in kit form?

Phil
 

Carl

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How did the acquisition of the Dirty Rice work out for Semroc? Is Cajun food a likely path forward for the company in these tough economic times? Will it be in kit form?

Phil
We tried it as a replacement for "dog barf", but it did not work as well and seemed to have a much shorter shelf life.
 

JRThro

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We tried it as a replacement for "dog barf", but it did not work as well and seemed to have a much shorter shelf life.
Probably sticks in the body tube, too.
 

chanstevens

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And now you have a name for your motor machine--Alice :D.

Never too soon to get a good April Fool thread started...
 

Carl

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And now you have a name for your motor machine--Alice :D.

Never too soon to get a good April Fool thread started...
Don't tell EMMA there is another woman!

I have been working on an April Fool thread, but so far, I am drawing a blank.:D
 

sunward

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Carl,

too obvious. You should have just confirmed you were in "discussions to acquire." That would have set everyone off. :D
 

Carl

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Carl,

too obvious. You should have just confirmed you were in "discussions to acquire." That would have set everyone off. :D
We had to move quickly since we had no idea how long they would still be available. We were afraid we would over-discuss and over-think this and miss out on an historic opportunity.
 

troj

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Okay, I'm gonna call bullpucky on this one!

I happen to know for a fact that TRF is taking over Estes -- it's been under discussion in the admin/mod area for the past month. The company will be run by a board of directors nominated from the TRF membership.

Sorry, Troy, I know you wanted to wait a couple weeks on the annuoncement, but these rumors are getting to a troublesome stage.....
 

AKPilot

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Well, I was hoping the mods and admins would keep this under their hat for a bit longer, but so be it - the cat's out of the bag. It's us folks . .. your TRF staff.

However, Kevin did get one thing a bit skewed. We've incorporated TRF and the BoD was finalized prior to the incorporation. My apologies, but we're not accepting applications.
 

troj

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However, Kevin did get one thing a bit skewed. We've incorporated TRF and the BoD was finalized prior to the incorporation. My apologies, but we're not accepting applications.
So that's why I no longer have access to those parts of TRF.... :eek:

-Kevin
 

troj

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Better early than never.
I think the list of people who bit was rather lengthy.

Me? I'm still trying to extract the hook from my lip....

-kevin
 

Carl

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Well, now we know where all of Semroc's profits are going...

Comedy lessons for Carl.

:D
Twenty years ago, I took Shag (a type of dance) lessons with Sheryl. After ten minutes, the instructor gave us the $35 check back. She said Sheryl did not need lessons and I was just wasting everyone else's time and my money, since I was unteachable.

Since then, I have been unable to get anyone to teach me comedy either. Probably for the same reason.:eek:
 

luke strawwalker

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Hmmm... Hey Carl, while you're in a buying mood, I have the PERFECT display for the exterior of your new world headquarters...

I know where there is an ORIGINAL full scale Saturn V sitting in a barn not 60 miles from here, LOW, LOW mileage (never been flown AFAIK-- Jack Schmitt's mother used to drive it to the grocery store on weekends is what I heard) and it's always been kept in a shed, ready to go! The paint is like new and if you hurry, I'll even throw in an extra F-1 and J-2 engine, and an old Redstone and Little Joe II to practice with and get your chops back before you fly her.

Send $2 million to my account with my banker buddy in Nigeria that's sending me my great uncle's oil millions he had on deposit there before his untimely demise so the government won't claim it, and I'll arrange for delivery. :D

Later! OL JR :)
 

JAL3

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Hmmm... Hey Carl, while you're in a buying mood, I have the PERFECT display for the exterior of your new world headquarters...

I know where there is an ORIGINAL full scale Saturn V sitting in a barn not 60 miles from here, LOW, LOW mileage (never been flown AFAIK-- Jack Schmitt's mother used to drive it to the grocery store on weekends is what I heard) and it's always been kept in a shed, ready to go! The paint is like new and if you hurry, I'll even throw in an extra F-1 and J-2 engine, and an old Redstone and Little Joe II to practice with and get your chops back before you fly her.

Send $2 million to my account with my banker buddy in Nigeria that's sending me my great uncle's oil millions he had on deposit there before his untimely demise so the government won't claim it, and I'll arrange for delivery. :D

Later! OL JR :)
I finally got to see that one for the first time on my last vacation 2 years ago. It was one of the most awe inspiring things I have ever seen.
 

Carl

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Hmmm... Hey Carl, while you're in a buying mood, I have the PERFECT display for the exterior of your new world headquarters...

I know where there is an ORIGINAL full scale Saturn V sitting in a barn not 60 miles from here, LOW, LOW mileage (never been flown AFAIK-- Jack Schmitt's mother used to drive it to the grocery store on weekends is what I heard) and it's always been kept in a shed, ready to go! The paint is like new and if you hurry, I'll even throw in an extra F-1 and J-2 engine, and an old Redstone and Little Joe II to practice with and get your chops back before you fly her.

Send $2 million to my account with my banker buddy in Nigeria that's sending me my great uncle's oil millions he had on deposit there before his untimely demise so the government won't claim it, and I'll arrange for delivery. :D

Later! OL JR :)
$2 million sounds sort of high to me. Now we might be able to come up with $2 TRILLION. The government still has to print millions and billions, but trillions must be naturally occuring in nature.

How much for that F1? It must burn about 80 seconds! I need it in short delay.
 

Carl

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Carl,

Too bad an all American company like yours doesnt really buy them up!!!
Sheri,

That is a much appreciated sentiment. Unfortunately, any all American company that buys a company today that is doing business with China would not be able to stay an all American company for long.

When another Communist country, years ago, said "We will bury you!" the correct translation was "We will buy you!"

If Estes-Cox is really for sale, I would join you in hoping for a purging of the China connection, but it most likely is not possible to shake those shackles.
 
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