Navico reached an agreement with its lenders that the company says will improve its financial strength and flexibility, through an increase in equity and convertible debt, by $189.9 million.
The electronics manufacturer says its position in the market is further strengthened by several operational changes, where the different companies Navico has acquired have been merged into one global company.
During the last two years, Navico says it has reduced its number of manufacturing facilities and improved manufacturing efficiency by 61 percent. Furthermore, the operating cost base has been reduced by 50 percent as a result of its latest savings programs, the company says.
"The marine electronics industry is currently experiencing difficult market conditions, but we do remain optimistic on the long-term prospects for the industry," said Leif Ottosson, Navico CEO and president, in a statement.
Navico plans to launch several new products throughout 2009-2011 as a result of a $50 million investment in product development.
"We believe the company has a great future, and with the new financial commitment from its owners and lenders, the company can focus on doing the right things through the current market downturn and come out of it with ever-better products, an improved customer service organization, and a more effective supply chain," said Hugo Maurstad, chairman of Navico's board, in a statement.