Fishing & Boating News

Genmar Announces Sale of its Aluminum Boat Companies To Brunswick Corporation

by: Troy Bergstrom, Genmar Holdings

(Mar. 08, 2004 - MINNEAPOLIS, MN) Genmar Holdings, Inc. (Genmar) announced today the sale of its Aluminum Boat Companies, consisting of Lund, Lund Canada, Crestliner and Lowe to Brunswick Corporation for $191 million in cash plus an additional $30 million potential earn-out. Irwin L. Jacobs, Chairman of Genmar, stated, "Genmar's Board of Directors unanimously agreed it would be in the best interests of the Company and its shareholders to put all of our efforts and resources towards the future development and expansion of Genmar's 13 remaining fiberglass boat companies."  As previously announced on February 10, 2004, Genmar successfully completed the spin-off of its VEC Technology company (VEC) into a stand-alone company with the new corporate name of VEC Technology LLC (VEC LLC). Jacobs further stated, "After the sale of our aluminum companies is completed, estimated to be late March, 2004, and with the VEC spin-off initially valued at approximately $350 million, Genmar will basically have minimal long-term debt and over $100 million in cash. With Genmar's balance sheet in the strongest financial condition its ever been, we will have the opportunity to accelerate our implementation of VEC and VEC Shield patented boat building processes throughout our factories and product lines." Jacobs continued, "After the sale of our aluminum boat companies to Brunswick, Genmar will consist of 13 of the world's premiere fiberglass boat companies (Carver, Four Winns, Larson, Glastron, Wellcraft, Hydra-Sports, Aquasport, Seaswirl, Ranger, Champion, Stratos, Triumph and Windsor Craft) with total annual sales in excess of $900 million, 5000 employees, and eight manufacturing locations." Finally, Jacobs stated, "Our aluminum boat companies have been an important part and a substantial contributor to Genmar's growth over the past 25 years. I would be less than candid if I didn't say that I will very much miss working with all the people associated with the aluminum boat companies in the future. However, I am confident that Brunswick will continue to give the necessary leadership and financial support to Lund, Lund Canada, Crestliner and Lowe in order that they will continue to grow and lead the aluminum pleasure boating industry in the future as they have for many years." # # # Genmar, with approximately 6,000 employees and 12 manufacturing centers in the United States and Canada, is the world’s largest builder of recreational boats and the industry’s technological leader with the development of VEC™ Technology and the VEC-Shield™ finish, the Roplene® process, the Genmar FirstMate™ customer care service and the Genmar Integrated Vessel System. Genmar boat brands include Aquasport®, Carver®, Champion®, Crestliner®, Four Winns®, Glastron®, Hydra-Sports®, Larson®, Lowe®, Lund®, Ranger®, Seaswirl®, Stratos®, Triumph®, Wellcraft®, and Windsor Craft™.