Malibu Boats said it will buy all of the equity interests of the Malibu Boats licensee in Australia.
The Australian-licensed business is operated by Malibu Boats Pty Ltd. and includes distribution rights in the Australia and New Zealand markets, as well as a manufacturing facility in Albury, Australia.
Tennessee-based Malibu said the proposed acquisition is expected to close in the first half of fiscal 2015, subject to negotiation and execution of definitive documentation.
"The planned acquisition of our Australian licensed business represents an important next step in our international growth strategy," Malibu CEO Jack Springer said in a statement. “Australia is an important region to the boating industry, not only because of the size of the market, but its proximity to Southeast Asia and its ability to serve that region of the world.”
Acquiring the Australian licensed business will give Malibu worldwide ownership of its brand, Spring said. It also hopes to grow its business in Australia and New Zealand while developing a larger presence in Asia.
“The global unification of Malibu Boats that will result from the proposed acquisition of the Australian business makes perfect sense for the brand moving forward,” Malibu Boats Pty Ltd director Xavier West said. “The combination of partnerships we have with customers, dealers, employees and suppliers all stand to benefit from a unified approach, thus allowing the strength of Malibu to continue its forward direction as the market leader.”
“Xavier West and his team have done a tremendous job in building the business and we believe this is a well-managed organization,” Springer said. “We have nearly 20 years of partnership, and this acquisition is a logical next step. With the investments we have made in Europe, South America and Asia the past few years, this will continue to broaden our global footprint and enhance our development of direct business models in key international markets."
The letter of intent is not binding on either party and the proposed acquisition is subject to the completion of a due diligence review by Malibu Boats and the successful negotiation and execution of definitive agreements for the proposed acquisition.