A Wells Fargo analyst reacted favorably to Brunswick's announcement Wednesday that it was selling its U.K.-based Sealine brand to The Oxford Investment Group.
“This announcement is not surprising, given recent management commentary alluding to the possibility of divesting a few non-core/non-profitable boat brands from its portfolio,” Wells Fargo Securities analyst Tim Conder. “While not specifically disclosed by the company, we believe Sealine's revenue as a percent of BC's total 2010 global revenue to be less than 3 percent. We view this announcement positively as [Brunswick] is shedding a non-core unprofitable brand, allowing for additional focus on global core-brands.”
In making the announcement of the sale, Brunswick chairman and CEO Dustan McCoy said the decision allows the company to “best concentrate our resources on our continuing brands and the marine segments in which we compete.”
Also, he said, with the global presence of Sea Ray, Bayliner, Meridian, Hatteras and Boston Whaler, Brunswick maintains its “leading presence in the world's marine markets.”
Brunswick stock closed at $15.89 a share Wednesday, down from its opening of $16.46. Its 52-week high and low are $27.70 and $13.35.