Malibu Boats, Inc. enters into letter of intent to acquire licensee in Australia
June 16, 2014
Filed under News
LOUDON, Tenn., June 13, 2014 (GLOBE NEWSWIRE) -- Malibu Boats, Inc. (Nasdaq:MBUU), a leading designer, manufacturer and marketer of performance sport boats, today announced it has entered into a letter of intent to acquire all of the equity interests of the Malibu Boats licensee in Australia. The Australian license business is operated by Malibu Boats Pty Ltd. and includes distribution rights in the Australia and New Zealand markets as well as a manufacturing facility in Albury, Australia. The proposed acquisition is expected to close in the first half of fiscal year 2015 subject to negotiation and execution of definitive documentation.
"The planned acquisition of our Australian licensed business represents an important next step in our international growth strategy," said Jack Springer, Chief Executive Officer. "Australia is an important region to the boating industry not only because of the size of the market but its proximity to Southeast Asia and its ability to serve that region of the world. Acquiring our Australian licensed business will give us ownership of our brand world-wide and a platform in which to continue growing our business in Australia and New Zealand and developing a bigger presence in Asia. Xavier West and his team have done a tremendous job in building the business and we believe this is a well-managed organization. We have nearly twenty years of partnership and this acquisition is a logical next step. With the investments we have made in Europe, South America and Asia the past few years, this will continue to broaden our global footprint and enhance our development of direct business models in key international markets."
Xavier West, Director of Malibu Boats Pty Ltd. commented, "The global unification of Malibu Boats that will result from the proposed acquisition of the Australian business makes perfect sense for the brand moving forward. The combination of partnerships we have with customers, dealers, employees and suppliers all stand to benefit from a unified approach, thus allowing the strength of Malibu to continue its forward direction as the market leader. 'Business as usual with a focus on growth' has been the core of negotiations and has been mutually agreed on by all parties to ensure the 20 year history of the brand in Australia is preserved and further enhanced moving forward. I look forward to continuing my relationship with the brand, as we approach the start of an exciting new era for Malibu Boats globally."
The letter of intent is not binding on either party and the proposed acquisition is subject to completion of due diligence review by Malibu Boats, Inc. and the successful negotiation and execution of definitive agreements for the proposed acquisition.
About Malibu Boats, Inc.
Malibu Boats is a leading designer, manufacturer and marketer of performance sport boats, with the #1 market share position in the United States since 2010. The Company has two brands of performance sport boats, Malibu and Axis Wake Research (Axis). Since inception in 1982, the Company has been a consistent innovator in the powerboat industry, designing products that appeal to an expanding range of recreational boaters and water sports enthusiasts whose passion for boating and water sports is a key aspect of their lifestyle.
Forward Looking Statements
This press release includes forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Forward-looking statements can be identified by such words and phrases as "believes," "anticipates," "expects," "intends," "estimates," "may," "will," "should," "continue" and similar expressions, comparable terminology or the negative thereof, and includes statements in this press release concerning our proposed acquisition of the Malibu Boats licensee in Australia and the timing of the expected closing of the transaction.
Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including, but not limited to: the ability of the parties to agree on definitive agreements for the proposed acquisition, the satisfaction of other customary conditions for transactions of this kind that the parties expect will be included in the definitive agreements, and other factors affecting us detailed from time to time in our filings with the Securities and Exchange Commission. Many of these risks and uncertainties are outside our control, and there may be other risks and uncertainties which we do not currently anticipate because they relate to events and depend on circumstances that may or may not occur in the future. Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that our expectations will be achieved. Undue reliance should not be placed on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation (and we expressly disclaim any obligation) to update or supplement any forward-looking statements that may become untrue because of subsequent events, whether because of new information, future events, changes in assumptions or otherwise.