Skip to main content

MasterCraft Investor Pushes Company to Explore Sale

mastercraft

The Donerail Group LP, an investment firm led by former activist hedge fund Starboard Value LP executive William Wyatt, is pushing Mastercraft Boat Holdings Inc. to explore a sale, people familiar with the matter said on Tuesday.

Donerail has amassed a stake of a little less than 5 percent in Mastercraft and has told the recreational powerboat manufacturer that it is not happy with its performance, according to Reuters.

Like most boatbuilders, Mastercraft has benefitted from people turning to the water during the pandemic; however, the 18 percent rise in its shares since Frederick Brightbill became its CEO last December is less than the 30 percent rally in the stock of larger peer Malibu Boats Inc. over the same period, Reuters said.

Donerail is calling for a sale process for Mastercraft that could draw interest from other industry players such as Brunswick Corp. and Malibu Boats, as well as private equity firms.

The sources requested anonymity because the discussions between Donerail and Mastercraft are confidential.

MasterCraft Boat Holdings Inc. ended the fourth quarter with higher demand across all its brands, with net sales of $51.1 million, a decrease of $71.1 million, or 58.4 percent, compared to the fourth quarter last year.

The decline was due to the loss of production during the Covid-19 shutdowns and supplier and workforce ramp-up.

Gross profit declined $24.1 million to $7.4 million, a 76.5 percent decline over the same period last year, and gross margins decreased 11.1 points to 14.5 percent for the fourth quarter, down from 25.6 percent last year. Dealer inventories were down 40 to 50 percent versus the end of fiscal 2019. 

Related

1_TRAVELIFT.COOP

Marine Travelift Launches Co-op Program

The company received its first student, a University of Wisconsin engineering major, in the seven-month paid co-op.

1_JULY4

Trade Only Today Returns Tuesday

The e-newsletter will not publish July 4 in observance of Independence Day. We wish everyone a safe holiday weekend.

1_ORR.FUNDS

ORR Announces Federally Funded Projects

The U.S. Economic Development Administration prioritized outdoor recreation for the first time

Norm#4

Ten Ways To Sell in a Tough Economy

These keys to successful selling can help you create customers who keep coming back, even when sales dip

1_ASA.BOARD

ASA Names New Board Members

The American Sportfishing Association filled two at-large seats and two regional seats on its board of directors.

1_EXEC.SEARCH

Dammrich, Hopkinson Partner With Marine Resources Recruitment

The industry veterans will help clients fill executive-suite, marine industry job openings around the world.

1_PULSE.PING.0630

DEALERS: How Was Business in the First Half of 2022?

With the second quarter coming to a close, was there parity between the budget and financial performance in the first six months? Take the Pulse Report survey here.

1_PMMPODCAST

Passagemaker Relaunches Podcast

Trawler Talk aims to connect with those who are interested in the cruising lifestyle, with episodes dropping every other week

1_AQUILA

Aquila Celebrates 10 Years

The builder said it has sold more than 500 power cats and is the No. 1 brand in that segment.