Brunswick Corporation completes acquisition of Navico

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METTAWA, Ill., 04 Oct 2021 (GLOBE NEWSWIRE) – Brunswick Corporation (NYSE: BC) today announced that it has completed the acquisition of Navico, a global leader in marine electronics and sensors for 1.05 billion dollars.

With this acquisition, Brunswick adds the industry-leading Navico brands, Lowrance, Simrad, B&G and C-MAP to its Advanced Systems (ASG) group, which includes the leading parts and accessories (P&A) brands in power management. , digital control and monitoring. , and network devices.

Navico is a leading supplier of multifunction displays, sounders, autopilots, sonar, radar and mapping. Navico’s strong brands serve most of the major powerboat and sailing markets for recreational and commercial applications.

Navico’s revenues totaled approximately $ 470 million for the 12-month period ended May 31, 2021, with attractive revenue growth, a strong margin profile and a capital efficient business model. Brunswick’s P&A segment represents approximately $ 1.5 billion, or 35% of total 2020 annual revenue. With the addition of Navico, Brunswick expects its P&A business to generate revenue on a rate basis. execution exceeding $ 2.0 billion. Navico’s strong focus on the secondary market and attractive margin profile further add to Brunswick’s cycle-resistant business profile.

Brunswick will use a combination of debt and cash on its balance sheet to fund the acquisition. Brunswick remains committed to maintaining its investment grade credit rating and expects its debt to EBITDA ratio to be approximately 1.7 times on a gross basis.

“This transaction is part of our Next Wave strategy and immediately accelerates our ACES strategy and solidifies the company’s commitment to acquire businesses that strengthen Brunswick’s ability to deliver complete and innovative digital solutions to OEM customers,” said Dave Foulkes, CEO of Brunswick Corporation. In addition to welcoming an accomplished and respected global workforce, we are also adding a talented, experienced and customer-focused management team, who will remain in place and play a major role in executing our strategy. “

About Brunswick

Based in Mettawa, Ill., Brunswick Corporation’s main consumer brands include Mercury Marine outboards; Mercury MerCruiser Sterndrive and Inboard Packages; Mercury Global parts and accessories, including propellers and SmartCraft electronics; Advanced Systems Group, which includes industry-leading brands such as Simrad, Lowrance, C-MAP, B&G, MotorGuide, Attwood, Mastervolt, RELiON, Blue Sea Systems, CZone and system integrators ASG Connect; Distribution of Land ‘N’ Sea, BLA, Payne’s Marine, Kellogg Marine and Lankhorst Taselaar marine parts; Mercury and Quicksilver Parts and Oils; Bayliner, Boston Whaler, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Lund, Princecraft, Quicksilver, Rayglass, Sea Ray and Uttern boats; Network of nautical services, Freedom Boat Club and Boat Class. For more information, visit brunswick.com.

Forward-looking statements

Certain statements contained in this press release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates and projections regarding the business of Brunswick and, by virtue of their nature, deal with issues that are, to varying degrees, uncertain. Words such as “may”, “could”, “should”, “expect”, “anticipate”, “project”, “position”, “intend”, “target”, “plan” , “Seek”, “” believe “,” predict “,” prospect “and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties which may cause actual results to differ materially from expectations as of the date of this press release. These risks include, but are not limited to: the effect of adverse general economic conditions, including the amount of income available to consumers for discretionary spending; changes in exchange rates; fiscal policy concerns; unfavorable economic, credit and capital market conditions; higher energy and fuel costs; competitive price pressures; the coronavirus pandemic (COVID-19) and the emergence of variant strains; manage our manufacturing footprint; adverse weather conditions, climate change events and other risks of catastrophic events; international business risks; our ability to develop new and innovative products and services at competitive prices; our ability to meet demand in a rapidly changing environment; loss of key customers; actual or anticipated increases in costs, supply interruptions or defects in raw materials, parts or components that we purchase from third parties, including due to pressures from the pandemic; supplier manufacturing constraints, increased demand for ocean carriers and transportation disruptions; absorb the fixed costs of production; risks associated with joint ventures which do not operate solely for our benefit; our ability to successfully implement our strategic plan and growth initiatives; our ability to integrate acquisitions, including Navico, and the risk of disruption associated with our business; the risk that unforeseen costs will be incurred in connection with the Navico transaction or the possibility that the synergies and value creation expected from the transaction will not be realized or will not be realized within the expected time frame; attract and retain a skilled workforce, implement succession plans for key leaders and execute organizational and leadership changes; our ability to identify, complete and integrate targeted acquisitions; the risk that strategic divestitures do not bring commercial benefits; maintain efficient distribution; adequate access to financing for dealers and customers; the requirements for us to buy back the inventory; inventory reductions by dealers, retailers or independent boat builders; risks associated with the business model of the Freedom Boat Club franchise; failures, breaches or other cybersecurity events regarding our technology systems, which could affect manufacturing and business operations and could result in the loss or theft of information and associated remediation costs; our ability to protect our brands and intellectual property; changes in US trade policy and tariffs; any impairment of the value of goodwill and other assets; product liability, warranty and other claims risks; legal and regulatory compliance, including increased costs, fines and reputational risks; changes in tax legislation or its application; manage our share buybacks; and the risks associated with certain militant actions by dividing shareholders.

CONTACT: Lee Gordon Vice President – Brunswick Global Communications & Public Relations Brunswick Office: 847-735-4003 Mercury Office: 920-924-1808 Cell: 904-860-8848 Lee.Gordon@Brunswick.com


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