Successful Businessman? Bowater Bought Pacur for 17 Million in 1986 and Sold It for 2 Million in 1997 | Wis.Community

Successful Businessman? Bowater Bought Pacur for 17 Million in 1986 and Sold It for 2 Million in 1997

Even though Ron Johnson didn't start Pacur, he was named the general manager of the company after Johnson's inlaws sold the company to Bowater in 1986 for 17 million.  My source for this is a 12/18/86 Business Wire report that I found on Lexus-Nexus, so no link, but here is the relevent paragraph:Here's the paragraph 12/18/86 Business Wire:

Bowater Industries plc announced the acquisition of the whole of the share capital of Pacur Inc. of Oshkosh, Wis. for an initial payment of U.S. $13 million in cash with a further maximum sum of U.S. $4 million payable in 1990 contingent on the results over the next three years.

Johnson remained at this position until Bowater (which changed its name to Rexam) sold  Pacur (which changed its name to Rexam Extrusions) to Johnson and his wife for 2 million in 1997. (Source: 10/3/10 Oshkosh Northwestern)

In other words, Bowater bought the company for 17 million, let Johnson run it, and then sold it for... 2 million eleven years later. 

Even if Bowater wanted to break-even and get out of Pacur what they paid for it, adjusted for inflation, that would be 24.9 million-- miles away from the 2 million that Johnson paid for it.

Running Pacur, is Johnson's only qualification in his bid for the U.S. Senate.  Now we find that Johnson did such a lackluster job running that company that Bowater was willing to take a 23 million dollar loss to get rid of Pacur.

WAKE UP WISCONSIN!

 

Published

October 23, 2010 - 11:29am

Author

randomness