The stalking horse in the Genmar Holdings bankruptcy case has been identified as Project Boat Holdings LLC, an affiliate of Platinum Equity, a global acquisition firm based in Beverly Hills, Calif., according to court documents.
The assets to be sold consist of those owned by the following: Genmar Holdings, Genmar Industries, Genmar IP, Genmar Michigan, Genmar Minnesota, Genmar Tennessee, Genmar Transportation and Wood Manufacturing.
The acquired assets are primarily those used in the design, manufacture and sale of the following boats: Ranger, Stratos, Champion, Wellcraft, Four Winns, Glastron and Larson. The assets also include facilities in Flippin, Ark.; Cadillac, Mich.; and Murfreesboro, Tenn.
The purchase price is $55 million, according to court documents.
The sale does not include Carver, Marquis, Seaswirl, FinCraft, Hydra-Sports, Javelin and other brands, or real estate and production facilities in Little Falls, Minn.; Pulaski, Wis.; and other locations. The sale also does not include the ownership of approximately 93 percent of VEC Technology.
"We are pleased to have a firm of Platinum's resources and reputation taking the lead in the auction process," Genmar's chief restructuring officer Mark Sheffert said in a statement.
As for the brands Platinum is not interested in purchasing, Sheffert said, "We continue the sale process for those brands as well, and we will include them if there are bids for them in the auction, or we will sell them separately.”
Sheffert continued: “Getting Platinum in place as the stalking horse bidder was the beginning of that process, but we are continuing to sell those brands, and we have interested parties, and we anticipate this will all come to a close by mid to the end of January."
An auction of Genmar's assets is set for Jan. 7, subject to bankruptcy court approval.
Genmar's former chairman and CEO Irwin Jacobs stepped down from the company earlier this month to avoid a potential conflict of interest as he pursues a purchase of the company.
“I will be a bidder," Jacobs told Trade Only this morning. "In addition to whatever my bid will be, [it] will also include the Larson/Glastron factory in Little Falls and the Pulaski Marquis/Carver factory and the VEC stock in Genmar.”
Jacobs would not comment on Platinum's bid, or give any additional details about his bid.
Genmar filed June 1 for Chapter 11 bankruptcy protection.