Sale of Genmar assets is finalized

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Genmar Holdings closed on the sale of its remaining boating-related assets and certain other non-core assets.

Platinum Equity of Beverly Hills, Calif., now owns the Ranger, Stratos, Champion, Wellcraft, Four Winns and Glastron boat brands; manufacturing facilities and related operations in Flippin, Ark.; Cadillac, Mich.; and Murfreesboro, Tenn.; and certain transportation equipment and other real estate assets.

Genmar previously completed the sales of Genmar Yacht Group, which includes Marquis and Carver, to J&D Acquisitions and its Hydra-Sports brand to MCBC Hydra Boats.

“Each of the brands we acquired has a rich heritage, a strong and loyal customer base and significant opportunities to grow following very challenging times throughout the boating industry,” said Louis Samson, the principal at Platinum. “Platinum has a strong track record of supporting companies through difficult transitions and we look forward to putting each of these brands on a path toward long-term growth and profitability.”

A transition is now under way that will establish Platinum’s new portfolio of former Genmar brands as a stand-alone business under a new corporate name. Details about the new corporate identity will be announced as the process unfolds.

“The marine industry has a lot of potential, and we’re very excited to be part of it. Right from the start, we intend to protect the core elements – customers, employees, suppliers, and dealers – while we devise new strategies for the future,” added Samson.

Platinum appointed David Huls president and CFO of the new consolidated corporate holding company. Huls was previously senior vice president and CFO of Genmar Holdings.

“The last eight months have been extremely difficult for our employees, dealers and suppliers,” said Huls. “I’m grateful for everyone’s support and cooperation as we worked through so many challenges. It hasn’t been easy and we have a lot of hard work ahead, but through a renewed spirit of collaboration we will all prosper together.”

Platinum also announced the executives who will lead the various brand operations.

Randy Hopper will continue to serve as president of Wood Manufacturing, a position he has held for more than 20 years, and will oversee Ranger Boats, Stratos Boats and Champion. Wood Manufacturing will be managed independently from the other brands.

“We couldn’t be more pleased,” said Hopper, in a statement. “Our capital structure going forward will allow us to keep our focus where it should be – building the most sought after fishing boats in the world.”

Jeff Olson will continue to serve as president of Four Winns and Wellcraft, and Mike O’Connell has been appointed to the newly created position of president of Glastron Boats.

“Partnering with Platinum Equity presents exciting new opportunities for our employees, dealers, suppliers and other business partners,” said Olson. “Platinum is an experienced investor with a strong track record of helping businesses reach their full potential and we are excited to have them as partners.”

Platinum also confirmed it completed the acquisition of certain other assets from Genmar Holdings and in turn sold those assets to J&D Acquisitions, which is controlled by Genmar founder Irwin Jacobs and Jean-Paul Dejoria.

The assets acquired and then sold to J&D include the Larson, Seaswirl and FinCraft boat brands, as well as the Little Falls, Minn., manufacturing facility that builds those brands; the Seaswirl manufacturing facility in Culver, Ore., and all of its related assets; VEC Technology LLC, located in Greenville, Pa.; the Triumph boat brand and related assets; and the Windsor Craft boat brand and related assets.

“We are very pleased that our negotiations with Irwin and his team culminated in this transaction. It was a quick and efficient process between parties who share a mutual respect,” Samson said. “We strongly believe J&D is the most logical owner for these assets.

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Comments

7 comments on “Sale of Genmar assets is finalized

  1. GroupSail

    Wow! Jacobs and the other executives bankrupt the company and then now they are hired back to run it in to the ground again. It might be time to clean house.

  2. Bystander

    What stupidity!
    This same happen to Crownline and so many others in their “bankrupty case”. Same key persons continued because it easiest to rump up the production and usually these individuals didn’ t cause the bankrupty.

  3. Grand Man

    WOW !   Is anyone surprised. They manipulated the system to aquire certain assets, and then ended up geeting more through the “Blind ” company.  It’s great getting people back to work, and going forward. The travsesty is the way it was done, and unethical methods.

  4. Industry Worker

    Nothing like rewarding failure. Hopefully this will put some people back to work, other than that I see no other positives in all of this.

  5. A Realist

    Why so critical….most of you sound shocked and mock the process…this is the USA folks….A Capitalist Free Market Economy. This type of thing happens all day every day in all business…..It’s simple don’t like IJ and his new company don’t buy the boats…..or would you rather the government get into the Marine Business too!!

  6. Philosophical

    It’s interesting that Mr. Jacobs has not expressed any remorse or regret to the many supplier and subcontractor companies who have been damaged or destroyed by the failure of his companies to honor their debts.

  7. boatparts

    As a supplier who was significantly hurt by the Genmar bankruptcy, I do hold Jacobs responsible to a very large degree. 
    Unsure if many suppliers have seen the new letter (Feb 2) from Jacobs to suppliers, but he pleads for competitive pricing and good terms, and to basically forget about the past.
    I hope everyone will put them on a very short lease (COD or NET 10 days)and a low credit limit. I also hope everyone will bump up their prices to them to help pay for what was not paid before.
    We could do without any of those brands, more boat companies does not mean more boats will be sold.  If they fail with Jacobs at the helm, the industry will be better off in the long run.

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