Platinum Equity buys majority of GenmarPosted on
California-based Platinum Equity has purchased “essentially all the assets” of Genmar Holdings for $70 million, chief restructuring officer Mark Sheffert confirmed to Soundings Trade Only.
Genmar founder Irwin Jacobs, who along with a partner purchased the Carver and Marquis brands, said he still hopes to own additional brands Platinum Equity purchased, but were not part of the group’s original bid.
Platinum purchased a total of 11 brands, Sheffert said, including Ranger, Stratos, Champion, Wellcraft, Four Winns, Larson, Glastron and others.
Carver and Marquis were purchased for $6.05 million by J&D Acquisitions LLC, a company created by Jacobs, along with John Paul DeJoria.
MCBC Hydra Boats, a subsidiary of Wayzata Investment Partners, purchased Hydra-Sports for $1 million, Sheffert said.
Genmar filed for Chapter 11 bankruptcy protection June 1. Jacobs had originally intended to reorganize his company but last fall changed direction to a sale of its assets.
“We are pleased with the results of the auction process and look forward to bringing closure to this transaction so that the businesses can refocus their energies and resources on sales and service without the inherent distractions of being in bankruptcy,” Sheffert said.
A spokesperson for Platinum Equity could not immediately be reached for comment.
All of the acquisitions are subject to bankruptcy court approval. A hearing is set for Wednesday.
Jacobs told Soundings Trade Only he was “euphoric” about the outcome of the auction and felt the companies were in good hands. He also said he plans to purchase certain assets back from Platinum Equity after the court hearing, including the Larson brand and its factory, FinCraft, Triumph and Seaswirl.
“I told [Platinum Equity] there were certain things I was interested in that I know they had no interest in, but they purchased them to get the thing done, and it is our intention to sit down in good faith when they get done in court securing the court’s approval for everything,” Jacobs said.
“They will negotiate with me in good faith and sell me these assets so I can keep these factories open, and they’ve assured me that they will deal fairly with me, and [they] appreciate the way that I’ve dealt with them,” he added.
The auction, which was held over two days, was managed by Houlihan Lokey Howard & Zukin Capital Inc., which signed an agreement in November with stalking horse bidder Project Boat Holdings, an affiliate of Platinum Equity.
– Beth Rosenberg