After six months looking for a buyer, Hatteras and Cabo Yachts appear to be nearing a sales agreement.
Brunswick Corp. plans to sell the Hatteras and Cabo brands to Navis HCY Acquisition LLC, according to a letter sent from Hatteras and Cabo vice president and CFO Robert Nenni to city officials in New Bern, N.C.
“I am pleased to inform you that within the next few weeks we intend to enter into an Asset Purchase Agreement whereby we will sell Hatteras and Cabo Yacht businesses to Navis HCY Acquisition, an affiliate of Versa Capital Management, LLC ... which is a Philadelphia-based private equity firm,” Nenni said in the letter obtained by Trade Only Today.
The letter was sent as part of a request that city officials reassign electric power to the new owners, effective upon the transaction’s closing. The sale of Hatteras requires that the electric service agreement for providing power be assigned to the new owners for the remainder of the term of the agreement, according to the resolution.
The board of aldermen voted unanimously Tuesday to approve the request, New Bern city clerk Veronica Mattocks told Trade Only.
Brunswick and Hatteras officials did not immediately return calls seeking comment. Hatteras president and CEO John Ward confirmed to the (North Carolina) Sun Journal that the companies were reaching a deal with Navis, but told the paper: “The deal is not finalized. We are still in the process of negotiating a deal.”
“The formal response from Versa right now is no comment,” Rivian Bell, who is with The Abernathy MacGregor Group Inc., the public relations firm handling Versa Capital, told Trade Only today.
Versa’s portfolio includes Polartec, Bob’s Stores, a Northeastern apparel retailer and outdoor chain Eastern Mountain Sports, to name a few. The company looks for investment opportunities in North American-based businesses with revenue in the $50 million to $1 billion range or assets of $25 million to $500 million, according to the website.
With $1.2 billion of assets under management, the firm is focused on control investments in distressed and special situations involving North American middle-market companies where value and performance growth can be achieved through enhanced operational and financial management, the website said.
— Reagan Haynes