Genmar Sells Its Aluminum Boat Companies To Brunswick Corp.

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MINNEAPOLIS, MN--Genmar Holdings recently announced it is selling its aluminum boat companies, consisting of Lund, Lund Canada, Crestliner and Lowe, to Brunswick Corp. for $191 million, plus an additional $30 million potential earn-out.

According to Genmar Chairman Irwin Jacobs, the company'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.
Genmar recently 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). 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.

With the sale of its aluminum boat companies, Genmar consists 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, 5,000 employees, and eight manufacturing locations.

"Our aluminum boat companies have been an important part and a substantial contributor to Genmar's growth over the past 25 years," Jacons says. "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 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."
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