June 24 2021
The sum is cool: nearly $1,05 billion!
This is the amount for which Brunswick is taking control of the Norwegian company Navico, one of the world leaaders in the market of electronic equipment for boating and yachting.
This acquisition, which surprised the boating industry, allows Brunswick to complete its portfolio of brands, with references such as Lowrance, Simrad, B&G and C-MAP.
These brands will become part of Brunswick's Advanced Systems Group (ASG) division, which includes leading parts and accessories (P&A) brands in power management, digital control and monitoring, and networked devices.
"The acquisition of Navico and its brands will immediately accelerate Brunswick's ACES (Autonomy, Connectivity, Electrification and Shared Access) strategy, and support our vision of providing distinctive new products and technology-based experiences," said Dave Foulkes, CEO of Brunswick Corporation on Yachting Art. "We will continue to invest in both organic initiatives and acquisitions to maintain our position as a global product leader, and the addition of Lowrance, Simrad, B&G and C-MAP to our existing portfolio of brands will further strengthen our ability to provide comprehensive and innovative digital solutions to consumers and complete, integrated system offerings to our OEM customers."
Navico is a privately held global company based in Egersund, Norway, and jointly owned by Altor Fund IV and Goldman Sachs Asset Management.
It is a leading provider of multifunction displays, fish finders, autopilots, sonar, radar and charting. Navico's strong brands serve most of the major power and sailboat markets for both recreational and commercial applications.
Navico's revenue was approximately $470 million, with attractive revenue growth, a strong margin profile and a capital efficient business model.
Brunswick's P&A segment is worth approximately $1.5 billion, or 35% of total 2020 annual revenues. With the addition of Navico, Brunswick expects its P&A business to generate more than $2 billion in revenue on a consistent basis.
Navico's significant aftermarket focus and attractive margin profile (low-cyclical market and steady cash flow) add to Brunswick's cycle-resistant business profile.
"After a strong period of growth, we are very excited to join the Brunswick family to strengthen our offering and support our customers going forward," said Knut Frostad, president and CEO of Navico. "On behalf of everyone at Navico, we look forward to beginning our journey with Brunswick and sharing our passion and dedication with their team. Working together, we will be able to deliver a unique and integrated customer experience. "
Brunswick will finance the acquisition through a combination of debt and cash.