Brunswick to sell Hatteras and CaboPosted on Written by Michael LaBella
Brunswick Corp. announced Thursday that its board of directors authorized the company to seek a buyer for its Hatteras and Cabo brands.
The move came just a few hours after the company said Sea Ray president Rob Parmentier stepped down to pursue other opportunities.
The company is now announcing its exit from the sportfishing convertible segment “in an expeditious manner,” Brunswick CEO Dustan McCoy said in a statement.
“This action reflects our decision to exit the sportfishing convertible category and to concentrate our resources in the yacht segment on our remaining brands, Sea Ray and Meridian Yachts,” McCoy said.
“When completed, this action will also contribute to our goal of a break-even or better boat segment in 2013, even if the larger sterndrive/inboard fiberglass markets do not improve,” McCoy said.
“The current plan assumes that the eventual purchaser will retain both the physical plant and the talented workforce of Hatteras/Cabo,” he said.
Despite that announcement, the Sun Journal in New Bern, N.C., where both companies are based, reported that Hatteras was laying off 105 workers.
In emails to the Sun Journal, Dan Kubera, a spokesman for Brunswick, said the layoffs announced Thursday were necessary to better adjust to the market conditions.
He also told the newspaper that the layoffs were “unrelated and separate” to the decision by Brunswick’s board to seek a buyer for Hatteras and Cabo.
“During the sale process, which we seek to complete in an expeditious manner, Hatteras and Cabo will maintain ongoing operations, and we will keep our employees and dealer network informed of our progress,” McCoy said in a statement.
As a result of this decision, the company expects to record charges in the range of $70 million to $80 million, a majority of which will be recorded in the fourth quarter of 2012.
Brunswick purchased Hatteras Yachts in 2001 and Cabo in 2006.
— Reagan Haynes