LAKE FOREST, Ill. – Brunswick Corp. has signed a letter of intent to sell certain assets of its Baja boat business to Fountain Powerboat Industries, Inc., and plans to end production of Baja boats in Bucyrus, Ohio, by the end of May in preparation for the transition, Brunswick reported yesterday in a release.
Terms of the agreement with Fountain were not disclosed, and completion of the sale is subject to certain conditions, Brunswick said.
When completed, the closing of the Baja plant will mean a loss of approximately 285 positions. Baja leadership will be working diligently to transfer as many employees as possible and practical to either Fountain or other Brunswick manufacturing facilities, Brunswick said.
For those employees who do not have the opportunity or do not wish to transfer, severance will be provided.
As a result of these actions, Brunswick estimates that asset writedowns, along with severance and other costs associated with the plant closure, could total between $10 million to $15 million, pre-tax.
“This was a strategic decision to further refine our product portfolio and best focus our resources on brands and marine segments that we believe are core to our success going forward,” said Brunswick Chairman and Chief Executive Officer Dustan E. McCoy. “This action in no way reflects upon Baja or the abilities and performance of the Bucyrus work force. We believe, however, that Baja and its dealers will ultimately benefit from being a part of Fountain Powerboats, a company that, like Baja, is a leader in high-performance boats.”
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