Yamaha Motor Corp. said it created a new subsidiary, Yamaha Marine Systems Co., following the acquisition of Kracor Inc., a rotational molding manufacturer based in Milwaukee.
The terms of the acquisition were not disclosed.
“The creation of YMSC and the acquisition of Kracor are part of Yamaha Marine’s long-term business strategy to expand into more integrated marine systems,” Yamaha Marine Group president Ben Speciale said in a statement. “YMSC will continue to add technologies and acquire assets and companies that support the marine systems strategy.”
Kracor employees will help Yamaha supply rotational molded parts and integrated fuel tank systems to boatbuilder customers and Yamaha’s internal business units, Speciale said, adding: “We value their knowledge and skill.”
“We want to be a systems supplier. And more and more, the outboard motor is integrated with all the other systems on the boat, whether it’s the fuel system, the electronics, the controls — there’s a tremendous amount of integration and we want to become a better supplier of integration,” Martin Peters, senior manager of marine communications and government relations, told Trade Only Today.
“The fuel system is integrated into the motor, and acquiring Kracor allows us to be a better supplier of systems,” Peters said. “There are 126 independent boatbuilders Yamaha does business with. Our business model is built around providing service to those customers — the better we can supply service to those customers, the better off everyone’s business is.”
Founded in Milwaukee by George Kraemer, Kracor opened in 1969. The company produces rotationally molded plastic products for national and international markets, with parts for the recreational marine and other industries.
“I am convinced Yamaha will take this business to the next level,” Kraemer said in a statement. “I could think of no better way to assure Kracor’s continued growth than aligning with Yamaha.”
The company has 20 employees in its 44,000-square-foot Milwaukee facility, which is on 4.4 acres, Peters said.
“It will operate as it has been,” he said. “Our goal right now is to make sure all the employees know they’re part of the Yamaha organization, and that’s what’s happening there right now. There are a number of Yamaha folks there conducting orientation for employees.”