May 14 2019
The Brunswick group (Mercury, Boston Whaler, Quicksilver, Sea Ray, Valiant...) has announced the sale of its fitness business to the private investment fund KPS Capital Partners.
After this cash transaction, which is expected to be finalized in the second half of 2019, the Brunswick Group will be entirely focused on the maritime world and yachting (boats, engines and services).
David Foulkes, CEO of Brunswick declared the following: "with the sale of the fitness
business, we are developing our specialization on Brunswick's formidable marine platform's. We will work with management in the near term to clarify our capital deployment plans generated by this transaction, in order to improve shareholder returns. Likely options include the repurchase of shares, the expected acceleration of deleveraging and the deployment of additional capital for mergers and acquisitions";
The amount of this sale would be between 455 and 465 million dollars, following a closing process planned for the second half of the year. 450 million of share buyback
In conjunction with this refocusing announcement, Brunswick has launched a $ 450 million buyback program to strengthen its shareholders' position, and announced plans to reduce debt by $ 150 million dollars this year.
Brunswick, world leader in yachting
If we look at Brunswick's marine activity, it represents a turnover of $ 4 billion in 2018.
A unique case on the market, Brunswick is positioned in the pleasure boat market (Quicksilver, Boston-Whaler, Bayliner, Sea-Ray ...) as well as inboard and outboard engines (Mercruiser, Mercury), and consumables, parts and equipment. In this market, Brunswick is the direct competitor of the French group Alliance Marine.
These market sectors are generating regular cash flow and are very complementary to the seasonality to which the construction of leasure boats is subject.
Among the investments - acquisitions - envisaged, a name is currently circulating, namely that of the Polish shipyard Galeon, whose turnover of 150 million euros is currently done mainly ... in North America.