Brunswick and Transamerica form joint venture

By IBI Magazine / Michael Verdon

Saying it would "provide stability over the long term" for its dealers, the chairman of Brunswick today announced a joint venture with Transamerica Distribution Finance, called Brunswick Acceptance Company. BAC will offer wholesale financing to the domestic Brunswick Boat Group and Mercury Marine dealer networks.

"Over the past ten years, many financial institutions have gotten into, and out of, marine lending. Our goal is to provide stability and to assure a source of floor plan financing for our dealers over the long term," said George Buckley, Brunswick chair.

Richard Strickler, senior vice president of Recreational Products for Transamerica, said that the joint venture was part of a "Brunswick strategy to provide as many services as they can to valued customers, their dealer network. They also want to ensure a consistent flow of funds for their dealer base."

Strickler said that Transamerica has the "expertise to help them do that," and also has a similar joint venture with Polaris Industries that has worked well. "Today, we have 25 to 30 percent of Brunswick's business," he said. "The joint venture may give us the opportunity to eventually have 70, 80 or even 90 per cent of their business."

He said that all of Transamerica's current financing for the Brunswick boat companies and Mercury Marine dealer network will be transferred to the joint venture, and that BAC will be developing "attractive" finance floor plans for the dealer networks. "The dealer still has a right to do business with anyone he wants to," said Strickler, "but over time, the joint venture will translate into a lot of additional benefits for him, including lower rates." Strickler says that the joint venture will operate independently of both Transamerica and Brunswick, though it will use Transamerica's accounting and finance departments. Dave Delger, Transamerica's current director of operations, was tapped to head BAC. It will have two offices in Knoxville, Tennessee, near the Brunswick Boat Group as well as Fond Du Lac, Wisconsin near Mercury Marine headquarters. It is expected to officially begin operations on January 2, 2003.

(22 November 2002)