SGC seems to be the big common problem. The company is bank owned, banks do not want to be in the glass business, so why not go buy SGC from the banks and stop the pricing insanity. SGC keeps lowering the price to the Ins. co's in the hopes to get the compliance rates up among the Insurers. SGC makes a set per invoice fee for each job, they really do not care if they hacked $20-50 from each claim they still make their $19 (?) from each invoice. Would somebody please go buy SGC and stop the pricing insaniity? How about Diamond/Belron/Glassgod or even Larry !

AGR Salesguy,
Think about what you just said. Do you have any idea what kind of power that would give Diamond if they bought SGC. They have their own network as is and they are a big part of the problem with AGR shops low-balling.

Thats a good idea. I'll go down to my local Safelite and write them a check right now. If everyone else does the same we could have a world full of independent Safelites. Wouldn't that be fun.

We should start a new reality show called The Apprentice: SGC Edition!!

We'll make everyone compete for the job of owning SGC!

Get the network out of the manufacturing and installation business.

Ding Ding Ding. L W has it. SPLIT THEM UP!!! Too much influence in conflicting positions.

Hey...they did it to Microsoft. Why not do it to AG.

I wonder how much stock the insurance industry has in the bank that holds SGC?

First, SGC already split themselves up. THree companies under the mother company.

Second, if the purchase of Safelite was viable, why hasn't it happened yet?

Could it be that the short definition of bankruptcy is not having enough assets to cover your liabilities?

Could it be that the group of Chase banks that own them has 'spread out the loss' of that bankruptcy among the group of Chase banks to cover or hide that loss, and the only hope they have of ever recovering it is to hold SL up till they do?

Just thinking out loud....but if all that was there to buy was a call center, two questionable mfg facilities, (one of which is now closed), inventory that would likely sell for 20 cents on an already low dollar, and a lot of hand tools, what's left to buy? The real estate is rented, so are the vans. Blue sky, perhaps? Better have a sound value on that blue sky, which isn't happening in this biz right now, is it?

Back to my PBJ and pepsi....

It was just an idea. shift your paradigm a little and then you might want to pitch in your checks for a piece of the action. Instead of the "force" being used for "dark" the force could be used for "good". O.K. I'll explain because I'm sure some of you got lost there. The evil SGC owns the contracts for the first call for many, many insurance companies. SGC keeps adding value (and keeping)to the contracts by squeezing the price with all glass shops that do the work. Anybody seeing how the squeeze could go the other way ???? Instead of your TPA sending you faxes alerting you to lower prices the fax says prices are going up. Get out your checkbooks. Oh, forget it. The forum knows better.

Oh, I wasn't 'dissing your idea, just thinking outloud.

One wonders if one would buy them, what would prevent another from stepping into their shoes. Other players already exist, and don't forget, Staglin is back in the game with all his monetary backers again.

Buying up competitors is most definitely not a rare occourence, but the outcome has to be worth the expenditure.

Would this be, is the question?

Mark1 , My sister is V.P of a Huge bank here in Texas. ( I talked to here about this) you are basically on the money with your post. Chase will not let Safelite go unless a big backer like D.T. or Belron come into play and offer up a big chunk of change,normaly double that of what the bank has invested.

Why would the Federal Trade Commision allow SGC and Belron merge again? Wouldn't the 2 of them control too much market? Or are the two companies involved too small for the feds to worry about?(In Fortune 500 terms, SGC is about 2 days worth of State Farms business), but Belron is in some 25 countries, even some in Africa.

How much would it really take to buy safelite????

I would only want the network, i bet you can buy there plant in KS for dirt cheap... :)

Looks like your gonna get your wish!

D-boy... As long as Lynx is around there is no problem with a monopoly situation. If PPG tried to buy Safelite, then you'd have another situation entirely.

Last time this came up was years ago in the salvage industry when ADP (who owned the Hollander Interchange) attempted to acquire another company AutoInfo (who had similar technology). Together, they would have monopolized the salvage industry.

ADP went ahead with the acquisition against the advice of some pretty smart and motivated salvage yard owners. It seems that the Federal Trade Commission sided with the salvage yard folks.

Subsequently, ADP had to spin off the AutoInfo business at a serious loss of close to 20 million dollars. This event broke a NASDAQ record of 45 consecutive quarters of double digit earnings per share for ADP. That was one heck of a record to have had for any publically traded company.

See the link for a complete explanation:

http://www.ftc.gov/os/1996/11/d9282cmp.htm