Brunswick finalizes acquisition of aluminum boat brands
LAKE FOREST, Ill. – Brunswick Co. has completed its acquisition of the Crestliner, Lowe and Lund aluminum boat brands from Genmar Industries, Inc. for approximately $191 million in cash, Brunswick said in a statement this morning.
The transaction also contains provisions for additional consideration of up to $30 million to be paid in three years, based on the achievement of a minimum 10 percent after-tax cash flow return on total investment over that time period, the company reported.
Brunswick will also receive future tax benefits, which have a net present value of about $35 million.
The purchase includes Crestliner, Inc., based in Little Falls, Minn.; Lowe Boats, Inc., based in Lebanon, Mo.; Lund Boat Company of New York Mills, Minn., and Genmar Boats Canada, Inc. (which produces the Lund brand in Canada), of Steinbach, Manitoba, Brunswick said.
Combined, these entities had sales of approximately $311 million in the year ended June 30, 2003. Brunswick said the purchase of these businesses would be accretive to earnings this year, adding approximately $0.08 to $0.10 per diluted share for the nine months remaining in 2004.
“This acquisition represents an important step in achieving our goal of ‘filling the white spaces’ in our product line-up by giving us a presence in the important aluminum boat segment,” Brunswick Chairman and CEO George W. Buckley said. “We welcome these companies and their employees to the Brunswick family.”
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