Brunswick Agrees to Acquire Three Aluminum Boat Brands
03-08-2004, 08:28 AM
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Brunswick Agrees to Acquire Three Aluminum Boat Brands
LAKE FOREST, Ill., Mar 8, 2004 /PRNewswire-FirstCall via COMTEX/ -- Brunswick Corporation (NYSE: BC) announced today it has signed a definitive agreement to acquire the Crestliner, Lowe and Lund aluminum boat brands from Genmar Industries, Inc., for approximately $191 million in cash.
"These brands are an ideal complement to Brunswick's line of fiberglass runabouts, cruisers and yachts, as well as our line of aluminum boats in the Princecraft brand," said Brunswick Chairman and Chief Executive Officer George W. Buckley. "This acquisition will expand our offerings to include a broader array of products in the important aluminum boat segments, in which we have little presence."
The agreement covers the purchase of Crestliner, Inc., based in Little Falls, Minn.; Lowe Boats, Inc., based in Lebanon, Mo.; Lund Boats, Inc., of New York Mills, Minn., and Genmar Boats Canada, Inc. (which produces the Lund brand in Canada), of Steinbach, Manitoba. Each of these companies produces numerous models of aluminum fishing, pontoon, deck and utility boats ranging from 10 to 25 feet. Combined, these entities had sales of approximately $311 million in the year ended June 30, 2003.
Commenting on the earnings impact, Buckley said, "On an annualized basis, these businesses would add approximately $0.14 per diluted share to the company's earnings. How much of that we would realize in 2004, however, will depend on precisely when the acquisition is closed." Subject to governmental approval and other customary closing conditions, the company said it expects to complete the transaction by the beginning of the second quarter.
"The goal of the Brunswick Boat Group is to offer our dealers a full line of products in all major powerboat segments," said group President Dustan E. McCoy. "Currently, we do not participate in the aluminum segment in any meaningful way in the United States. The addition of these quality brands represents a significant step in our effort to 'fill the white spaces' in our product line-up and to offer dealers a full range of products to meet their customers' particular boating needs. In addition, this acquisition supports our effort to provide consumers with products that benefit from an integrated approach to boat and engine manufacturing, allowing the efficiencies, product planning and integration to deliver a more satisfying boat-owning experience."
The company said the agreement contains provisions for additional consideration of up to $30 million to be paid in three years based on the achievement of certain financial targets over that time period.
"These brands are an ideal complement to Brunswick's line of fiberglass runabouts, cruisers and yachts, as well as our line of aluminum boats in the Princecraft brand," said Brunswick Chairman and Chief Executive Officer George W. Buckley. "This acquisition will expand our offerings to include a broader array of products in the important aluminum boat segments, in which we have little presence."
The agreement covers the purchase of Crestliner, Inc., based in Little Falls, Minn.; Lowe Boats, Inc., based in Lebanon, Mo.; Lund Boats, Inc., of New York Mills, Minn., and Genmar Boats Canada, Inc. (which produces the Lund brand in Canada), of Steinbach, Manitoba. Each of these companies produces numerous models of aluminum fishing, pontoon, deck and utility boats ranging from 10 to 25 feet. Combined, these entities had sales of approximately $311 million in the year ended June 30, 2003.
Commenting on the earnings impact, Buckley said, "On an annualized basis, these businesses would add approximately $0.14 per diluted share to the company's earnings. How much of that we would realize in 2004, however, will depend on precisely when the acquisition is closed." Subject to governmental approval and other customary closing conditions, the company said it expects to complete the transaction by the beginning of the second quarter.
"The goal of the Brunswick Boat Group is to offer our dealers a full line of products in all major powerboat segments," said group President Dustan E. McCoy. "Currently, we do not participate in the aluminum segment in any meaningful way in the United States. The addition of these quality brands represents a significant step in our effort to 'fill the white spaces' in our product line-up and to offer dealers a full range of products to meet their customers' particular boating needs. In addition, this acquisition supports our effort to provide consumers with products that benefit from an integrated approach to boat and engine manufacturing, allowing the efficiencies, product planning and integration to deliver a more satisfying boat-owning experience."
The company said the agreement contains provisions for additional consideration of up to $30 million to be paid in three years based on the achievement of certain financial targets over that time period.
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