US builder to buy saltwater outboard fishing boat producer
Malibu Boats in the US has entered into a definitive agreement with S2 Yachts Inc to buy the assets of Pursuit Boats for a total consideration of US$100m. The transaction, says Malibu, will be funded with cash on hand and a borrowing under an incremental revolving credit facility to be added to its existing credit facility.
“As a leader in the saltwater outboard fishing segment, Pursuit is an incredible addition to the Malibu family,” says Malibu CEO Jack Springer. “Together, we have an opportunity to broaden our outboard offering, while leveraging the manufacturing and design expertise of the respective teams to continue to deliver the premium products customers expect.”
Located in Fort Pierce, Florida, Pursuit Boats offers a 15-model range of saltwater outboard fishing boats in offshore, dual console and center console versions. In the 23 months ended June 30, 2018, the company generated around $124m in net sales.
Malibu, which is based in Loudon, Tennessee, claims to be the leading producer in the US of performance sport boats through its Malibu and Axis Wake Research brands, and the top producer in the 24ft-29ft segment of the sterndrive category through its Cobalt brand.
“As a trailblazer in its own right, Malibu is an ideal partner, as we maintain similar cultures with a shared passion for product and people, which has driven our collective long-term success,” says Tom Slikkers, CEO of S2 Yachts. “This transaction is as much about the right partner to steward Pursuit’s future as it is about the sale price. Malibu is that right partner.
“The Slikkers family will continue to own and operate Tiara Yachts and Tiara Sport under the S2 Yachts umbrella, and we are excited about that,” he adds.
The acquisition is expected to close in the fourth calendar quarter of 2018, subject to customary closing conditions.