Genmar auction gets under way

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The auction for Genmar’s assets was scheduled to start at 11 a.m. EST this morning in Minneapolis.

Bids were due Monday.

The auction is being managed by Houlihan Lokey Howard & Zukin Capital Inc., which signed an agreement in November with stalking horse bidder Project Boat Holdings, an affiliate of California-based Platinum Equity.

It submitted a bid of $55 million for assets used in the design, manufacture and sale of Ranger, Stratos, Champion, Wellcraft, Four Winns, Glastron and Larson. The assets in the bid also include facilities in Flippin, Ark., Cadillac, Mich., and Murfreesboro, Tenn.

A representative of Houlihan would not comment earlier this week on the number of bids received or give any information about the bids.

Genmar founder Irwin Jacobs, who last year stepped down as chairman of the company, has said he plans to bid on at least a portion of the assets, but would not discuss specifics.

A sales approval hearing is set for Jan. 13 in U.S. Bankruptcy Court in Minneapolis, with the closing set for Jan. 20.

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Comments

12 comments on “Genmar auction gets under way

  1. DJ in NC

    Interesting mix Platinum Equity is bidding on.  I wonder if they have some market knowledge some of us may be overlooking especially with respect to the I/O builders of cruiser type boats.

  2. Breeze

    Irwin ran Genmar into the dirt! This bankrupcy is a joke, and attempt by a greedy individual to buy back only the profitable assets at a nickle on the dollar.
    The sooner Irwin is removed from all relationships with the Genmar assets the better! Short of that, these companies will not prosper.

  3. Boater

    I think Erwin will end of with a few of the companies.  Hopefully this time he will operate them in a profitable way. It appears Platinum Equity is bidding only on the companies that were turning high volume numbers.  Get them up and running and sell them off.  Great Plan!

  4. GM in VA

    He did the same thing to AMF Corp. in the mid-’80s. Sold off  it’s subsidiaries and nearly put Hatteras Yachts out of business.

  5. Puzzled

    Will Platinum operate these companies??….sit on them and sell them next year??… when the economy is better….how long will it take them to hire back the people at the plants, crank up production, and in what facilities? What about Vec..which they are not purchasing…will they have to re tool the sportboats to conventional manufacturing. Are they going to address any of the millions of dollars that are owed to the dealers…left out in the cold. There are sooooooooo many questions !!!
    Who is going to trust Irwin ….again…if he were to buy some of his own companies???

  6. funwiz

    Hard to know who to hope for. Platinum has deep pockets but I worked for a company they bought and watched them let management drive it into the ground.
    Now I’m hooked to Genmar and hoping the same thing doesn’t happen again…deja vu all over again. If Irwin couldn’t make it work before what will have changed?

  7. Drakester

    Whoever the highest bidder is will need to change it to an old school  (“make it happen”) style management….. Get out of the office, get on the floor and engage the operation.

  8. X Dealer

    What a way to start the selling season, huh?
    Irwin will be fine, personally. He should retire, however. Amazing to me that he can still be deep in the mix at his age. Does ruthlessness ever fade?,

  9. twice boned vendor

    What Irwin Jacobs is trying to do is nothing short of criminal. If he is sucessful in this shame on the US Court system. Hundreds for sure, and probably more than a thousand people have been taken advantage of in a way that in many countries would warrant public flogging.

  10. Waiting & Weary

    As someone closely tied to Little Falls, Minnesota (where Genmar holds facilities not mentioned in this article, but producing Larson, Glastron and SeaSwirl boats) I’m anxiously awaiting the results of the auction.
    The persistent layoffs have hit the community hard, leaving not only those associated with the boatworks hurting, but local vendors that Genmar strived to work with.
    Hoping for some positive news, no matter who wins the bid.
    BTW – leaving your employees to hear that you’ve filed for Chapter 11 on the news instead of telling them destroys any and all company moral.
     

  11. Time observer

    For over 40 years I have been in the halls all just about every boat company that Genmar and Brunswick owns as a consultant.  I have watched these companies go from having people in place who were 100% qualified for the job that was at hand (example: true engineers in engineering) to people who were in place with a silver tongue and master of politics and bureaucratcy….or shoe salesmen everywhere.  This has destroyed these companies operating costs and the ability to work effectively with them.
    I agree with a comment earlier.  I hope who ever gets the bid returns to the basics of putting properly qualified people in place verses appointing or placing people in positions because of politics…..the high level politics has got to be taken out of the workplace…..it’s bad enough in the Government

  12. yachtpilot

    “I have watched these companies go from having people in place who were 100% qualified for the job that was at hand (example: true engineers in engineering) to people who were in place with a silver tongue and master of politics and bureaucratcy….or shoe salesmen everywhere.  This has destroyed these companies operating costs and the ability to work effectively with them.”
    Well said. So true. So sad.
    And when all was lost, those same people were pretty much all that was kept, along with family members, friends, etc who can’t make it in the world on their own, and of course, the bean counters; People with industry knowledge, history and experience were looked upon as the bad guys, and let go; because they dared to ask why, and dared to voice concern when they knew things should have been changing with the times and economy.
    Guess who is there now to do it all over again?

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