Brunswick Corp. said today that it intends to sell Sea Ray in an effort to improve the company’s “risk and margin profile,” as well as its “commitment to drive shareholder value.”
Lazard's middle-market advisory group is acting as Brunswick's investment banker for the transaction, which is expected to be completed in the first half of next year.
"Our marine strategy is focused on developing, manufacturing and distributing market-leading products to recreational and commercial marine consumers through our portfolio of engine, boat and parts and accessories businesses," said Brunswick CEO Mark Schwabero in a statement. "This decision was made after careful consideration and reflects the evolving contribution that the Sea Ray brand has made to our marine portfolio.”
"Our remaining brands will continue to be important elements of a robust, balanced marine business, with our boat portfolio serving healthy, expanding market segments," Schwabero said. "This more focused strategy will provide the best opportunities for growth and will complement our other marine offerings, including engines, parts and accessories. This shift will also improve our risk and margin profile and is consistent with our commitment to drive shareholder value.”
"We believe that the Sea Ray business, through its leading brand and exciting product line, offers attractive value-creation opportunities to a new owner," Schwabero added. "Sea Ray is an iconic brand that is rich with history, with a reputation for craftsmanship, quality and styling. Sea Ray's manufacturing facilities are among the most advanced in the marine industry, with talented and dedicated workforces."
During the sale process "we will continue to diligently manage Sea Ray by executing its business and product plans in support of our dealers and customers," Schwabero said.
"Our immediate focus is on informing our employees and dealers at this moment," Brunswick spokesman Daniel Kubera told Trade Only Today.
Brunswick will report the results of Sea Ray, as well as its Meridian boat brand, as discontinued operations for accounting purposes going forward.
Brunswick is reaffirming its recent earnings-per-share guidance and target ranges for 2017, 2018 and the 2020 plan.