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Brunswick Purchases Hatteras YachtsBC Press Release |
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Brunswick Purchases Hatteras YachtsBC Press Release |
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Brunswick Press Release 24 Oct. 2001LAKE FOREST, Ill., Oct. 24 -- Brunswick Corporation announced today that it has signed a definitive agreement to acquire Hatteras Yachts, Inc. from Genmar Industries, Inc. for approximately $80 million in cash. The agreement contains provisions for an additional payment of up to $20 million based on Hatteras achieving certain financial growth targets over the next 20 months. Brunswick will also receive future tax benefits, which have a present value of approximately $13 million.
Commenting on the announcement Brunswick Chairman and Chief Executive Officer George W. Buckley said, "Hatteras is the premier U.S. manufacturer of luxury sportfishing convertibles and motor yachts in the 50-foot to 100-foot range. It is also a brand with significance stretching well beyond its size in sales. There is virtually no overlap in the product line between Hatteras and our Sea Ray, Bayliner and Maxum pleasure boat brands, making this an excellent addition to our Brunswick Boat Group. Our international large yacht distribution network will also enable us to leverage sales overseas. Moreover, this acquisition will allow us to meet the needs of our boating customers who desire to move up in size and luxury, especially in the United States."
Headquartered in New Bern, N.C., Hatteras has annual sales of approximately $130 million. From its 580,000-square-foot manufacturing facility, Hatteras builds 15 models of sportfishing convertibles and motor yachts and sells about 70 boats per year.
"With its dedication to quality and reputation for excellence and luxury, we believe Hatteras is a perfect complement to our stable of market-leading brands and integral to maintaining Brunswick's position as the world's leading pleasure boat company," Buckley said. "Since 1959 when the first Hatteras was launched, the company has been known for its innovative design, attention to detail and commitment to its customers. Those are all important values and characteristics we share and prize at Brunswick. We intend to leverage Hatteras' large-boat expertise across our other large-boat brands."
Buckley noted that Hatteras would remain based in New Bern, and President William C. Naumann and his management team would continue to operate the business, reporting to Dustan E. McCoy, president of the Brunswick Boat Group.
"Like Brunswick, the Hatteras team has a passion for boating that has been finely honed for more than 40 years," McCoy said. "That attitude, along with sound and profitable management principles and practices, have been further nurtured and instilled by Bill Naumann and his managers. We look forward to what the Hatteras team will bring to the Brunswick Boat Group as well as how we can help Hatteras extend its influence and presence in the market."
"A few years ago when I joined Hatteras, I knew I was stepping into a legend in boating," Naumann said. "I have been privileged to live that legend, and hopefully, enhanced it in some manner. We have increased sales, while improving our efficiency, quality and profitability. Now with Brunswick's additional knowledge and resources, we believe we can make Team Hatteras even better."
Brunswick said the transaction, expected to be completed by the end of November, is subject to governmental approval and other customary closing conditions.
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