Fountain Buys Baja Today 3/20/08
03-20-2008, 03:52 PM
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http://www.fountainpowerboats.com/news/ne_mar2008.htm
Brunswick Announces Sale of Baja Marine Assets to Fountain Powerboats
LAKE FOREST, Ill., March 20 /PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE: BC) today announced the signing of a letter of intent to sell certain assets relating to its Baja boat business to Fountain Powerboat Industries, Inc., of Washington, N.C. Terms of the agreement were not disclosed, and completion of the sale is subject to certain conditions. In preparation for the transition, Brunswick plans to end production of Baja boats in Bucyrus, Ohio, by the end of May, consistent with the end of the 2008 model year. As a result of these actions, the company said it estimates that asset write-downs, along with severance and other costs associated with the plant closure, could total between $10 million to $15 million, pre-tax.
"This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward," said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. "This action in no way reflects upon Baja or the abilities and performance of the Bucyrus work force. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance boats."
When completed, the closing of the Baja plant will mean a loss of approximately 285 positions. Baja leadership will be working diligently to transfer as many employees as possible and practical to either Fountain or other Brunswick manufacturing facilities. For those employees who do not have the opportunity or do not wish to transfer, severance will be provided.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Laguna, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; IDS dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air Hockey and foosball tables. For more information, visit http://www.brunswick.com.
SOURCE: Brunswick Corporation
CONTACT: Daniel Kubera, Director - Media Relations and Corporate
Communications of Brunswick Corporation, +1-847-735-4617,
[email protected]
Web site: http://www.brunswick.com
Brunswick Announces Sale of Baja Marine Assets to Fountain Powerboats
LAKE FOREST, Ill., March 20 /PRNewswire-FirstCall/ -- Brunswick Corporation (NYSE: BC) today announced the signing of a letter of intent to sell certain assets relating to its Baja boat business to Fountain Powerboat Industries, Inc., of Washington, N.C. Terms of the agreement were not disclosed, and completion of the sale is subject to certain conditions. In preparation for the transition, Brunswick plans to end production of Baja boats in Bucyrus, Ohio, by the end of May, consistent with the end of the 2008 model year. As a result of these actions, the company said it estimates that asset write-downs, along with severance and other costs associated with the plant closure, could total between $10 million to $15 million, pre-tax.
"This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward," said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. "This action in no way reflects upon Baja or the abilities and performance of the Bucyrus work force. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance boats."
When completed, the closing of the Baja plant will mean a loss of approximately 285 positions. Baja leadership will be working diligently to transfer as many employees as possible and practical to either Fountain or other Brunswick manufacturing facilities. For those employees who do not have the opportunity or do not wish to transfer, severance will be provided.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler, Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Laguna, Lowe, Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass, Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg Marine, Diversified Marine and Benrock parts and accessories distributors; IDS dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness equipment; Brunswick bowling centers, equipment and consumer products; Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air Hockey and foosball tables. For more information, visit http://www.brunswick.com.
SOURCE: Brunswick Corporation
CONTACT: Daniel Kubera, Director - Media Relations and Corporate
Communications of Brunswick Corporation, +1-847-735-4617,
[email protected]
Web site: http://www.brunswick.com
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03-20-2008, 05:16 PM
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03-20-2008, 07:47 PM
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Sweet Jesus, payback will be a biotch. They will in fact be the underling, low end, starter version of a Fountain. The true Bagliners of the perf world. Maybe he'll put half a beak on them.
This should also put the clamps on the yappers that keep saying Fountain is going under, and Reggie is broke.
03-20-2008, 07:55 PM
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My guess is status quo. Likely will mimic the present relationship at Brunswick between Bayliner and Sea Ray. Might mean some tech upgrades for Baja, same as Bayliner has benefited from Sea Ray being brought into the Brunswick family. To put both at the same level would only put the lines in competition with the same buyer, and I do not think Mr. Fountain is that unsavy a businessman. There is enough competition out there without fighting with yourself for the buyer.
03-20-2008, 08:00 PM
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smell a rat
#1 Fountain and Reggie couldn't purchase the Whichards Beach property, that he has wanted since 1979, his 7 million was outbidded.
#2 Mercury is only involved with Fountain because he is so in debt with them, this way they can keep an eye on his spending. They may possibly be looking to use his facility to offset his debt with the brand...????
#3 They haven't owned a raceboat for the last 15 years, yes , the hulls are FLOORPLANNED through a few tight knit dealers and how the finance companies allow this still baffles me......
#4 I'll stop here.........
Rumor enough for ya
Post for entertainment fiction use only.
#2 Mercury is only involved with Fountain because he is so in debt with them, this way they can keep an eye on his spending. They may possibly be looking to use his facility to offset his debt with the brand...????
#3 They haven't owned a raceboat for the last 15 years, yes , the hulls are FLOORPLANNED through a few tight knit dealers and how the finance companies allow this still baffles me......
#4 I'll stop here.........
Rumor enough for ya
Post for entertainment fiction use only.
03-20-2008, 08:38 PM
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#1 Fountain and Reggie couldn't purchase the Whichards Beach property, that he has wanted since 1979, his 7 million was outbidded.
#2 Mercury is only involved with Fountain because he is so in debt with them, this way they can keep an eye on his spending. They may possibly be looking to use his facility to offset his debt with the brand...????
#3 They haven't owned a raceboat for the last 15 years, yes , the hulls are FLOORPLANNED through a few tight knit dealers and how the finance companies allow this still baffles me......
#4 I'll stop here.........
Rumor enough for ya
Post for entertainment fiction use only.
#2 Mercury is only involved with Fountain because he is so in debt with them, this way they can keep an eye on his spending. They may possibly be looking to use his facility to offset his debt with the brand...????
#3 They haven't owned a raceboat for the last 15 years, yes , the hulls are FLOORPLANNED through a few tight knit dealers and how the finance companies allow this still baffles me......
#4 I'll stop here.........
Rumor enough for ya
Post for entertainment fiction use only.
.. eart to run .. for creadabilty here you have to post your real name not a screan name .. you 2 and 3 answers are way wrong .
