Weber (WEBR) Receives Takeover Approach - Source

October 11, 2022 11:38 AM EDT

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Weber (NYSE: WEBR) has been approached about a takeover by a private equity firm and has hired investment bank Centerview Partners to review its options, according to a source.

Shares of the grill maker are down nearly 50 percent since coming public in August 2021 as margin pressures and slower sales damped results.

During its third quarter, sales fell 21% to $528 million while gross profit decreased 49%. Following the results, the company implemented a cash flow and cost management plan which included a suspension of its quarterly cash dividend, a focused reduction of COGS and SG&A expenses, a reduction in management layers, and tightening of global inventory levels and working capital positions.

It is unclear if the preliminary approach will lead to a takeover.

Weber has not immediately responded to a request to comment on the rumor.

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