Malibu will use proceeds from stock offering for acquisition - Trade Only Today

Malibu will use proceeds from stock offering for acquisition

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Malibu Boats plans to use the $76.8 million in proceeds it got from offering more than 5.5 million shares to buy units of Australian licensee Malibu Boats Holdings LLC from its owners.

Malibu announced last month its intent to buy all of the licensee’s equity interests.

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 the 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 at the time. “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.

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