Brunswick sells Triton Boats

Posted on July 29, 2010

Brunswick Corp. said today that it sold Triton Boats to Fishing Holdings, an affiliate of Platinum Equity.

Terms of the transaction were not disclosed.

"This decision was part of our ongoing strategic review to further refine our product portfolio and best focus our resources on those brands and marine segments that we believe are core to our success going forward," Brunswick chairman and CEO Dustan E. McCoy said in a statement. "As such, Brunswick will maintain its leadership position in the recreational and fishing boat markets, with a strong presence in the freshwater and sportfishing segments, as well as leading brands in the runabout/cruiser and yachts segments."

Known for its quality bass boats and saltwater fishing boats, Triton also builds separate lines of aluminum, pontoon, ski and walleye boats. The company was founded by industry veteran Earl Bentz.

Brunswick will retain the rights to certain intellectual property and other rights to Triton aluminum boats and will continue to sell those models under license as part of Brunswick's aluminum portfolio.

In connection with the transaction, the production of Triton fiberglass boats will be relocated from Ashland City, Tenn., to Flippin, Ark. Lund fiberglass manufacturing will be moved to the Brunswick Boat Group's Tellico fiberglass boatbuilding facility in Vonore, Tenn. Trophy fiberglass fishing boats will be built in Ashland City through the remainder of the year as Brunswick evaluates strategic alternatives.

Those boats will continue to be built at Brunsick's Lebanon, Mo., aluminum manufacturing facility. Brunswick's Cypress Cay pontoon boats, which are manufactured in Fort Wayne, Ind., and carried by many Triton dealers, are not affected by this transaction.

Brunswick's Mercury Marine unit will continue to supply propulsion systems to Triton and Fishing Holdings' other brands.

As a result of these actions, Lake Forest, Ill.-based Brunswick said it estimates that associated restructuring charges could total between $18 million and $20 million, pretax, of which $15 million was recorded in Brunswick's second-quarter financial results.

Comments

9 July, 31 2010, 07:59 PM

By boat industry vet

I hope the trend continues of boat builders buying boat companys. The past several years of just trying to survive as a boat manufacture or marine dealer is a direct result of the trend O.M.C. started by purchasing boat manufactures during the 80s.

8 July, 30 2010, 02:28 PM

By Big john

Well well well,I do see at least 2 or 3 boat lines going by the wayside.But I can tell you it will not be Skeeter boats.Mother YAMAHA is in it for our industry to grow and they are in it for the long haul.Thank goodness they are looking to the future.W e saw Brunswick making the same errors for 23 years.We had been with them for 18 years when they said sorry we can't do business with you anymore.Thank you Brunswick,YAMAHA the future of outboards and boating.

7 July, 29 2010, 07:42 PM

By stan

okay now where does the future go??the ranger boys were over seeing ranger stratos and champion now triton .skeeter remains alone along with a handfull of indepedent boats as well. if ranger stratos champion and now triton stay under one group in 3 yrs i believe somebody will expire  or possible 2 or 3  brands will.

6 July, 29 2010, 07:21 PM

By Capt._Eric

Amazing, Brunswick rides again.  They paid top dollar for many of their aquired brands to fill so called "white spaces" in their markets.  They tough it out, give some of their employees high hopes with all of their realignments and closing plants and merging resources only to screw the dealers who survived the recession and their own employees with more job cuts and losses.  Go figure.  Thanks Brunswick for rewarding dealer and employee loyalty. 

5 July, 29 2010, 07:19 PM

By Industry Worker As Well

Industry worker - I have to respectively disagree.  These "equity" companies get into the business, yes, to make money, but how do you think they will do that?  By helping grow the industry by putting much needed capital into it. They can't grow all on their own.  They can't make money on this deal if they don't improve it.  Most of these companies waited too long to downsize, thus it caught up with them and they took the hit.  That's water under the bridge at this point.  This is good ol'capitalism and if you don't appreciate it feel free to move to ....you get where I'm going.

DJ - Let's be honest.  You know, as well as I do, the folks at Ranger/Stratos and now Triton put out a quality boat.  They wouldn't be where they are without that.  You sound like you're possibly a supplier who misses the good days and can't live with the fact that nobody is getting what they want for what they are selling these days.  The market fixed itself.  We all are coming to a reality that this isn't the same times as it was a few years back.

I say good luck to all, get over it and let's grow, grow, grow!

4 July, 29 2010, 02:24 PM

By Industry Worker

It is great that so many of the destressed boat companies are back employing workers.  However, we will regret the day that these private equity groups entered into our industry.  They care nothing about the growth of our industry or its longevity.  They are simply in it for the short term to turn a fast buck.  Figuring the brand names alone hold a value and that value is much greater than what the companies were bought for.  This will not be good for our industry.  

3 July, 29 2010, 10:53 AM

By Dennis Robbins

"As such, Brunswick will maintain its leadership position in the recreational and fishing boat markets, with a strong presence in the freshwater and sportfishing segments, as well as leading brands in the runabout/cruiser and yachts segments."...did I miss something here? Can Brunswick with good conscious make that statement? Leadership? Buy high, ride through the recession and then just when there's light at the end of the economic tunnel, sell low!

2 July, 29 2010, 10:42 AM

By DJ

To bad Triton was not purchased by a stand-alone group of investors or individual instead of a larger marine holding company.  IMO the independently owned companies produce a higher quality boat than those owned by certain marine groups who will leverage the brand name and add to the bottom line by squeezing the suppliers on large raw material contracts.

1 July, 29 2010, 10:34 AM

By ex disgruntled

Good thing Dave Huls and the other Genmar management landed on their feet!

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