Swedish boat dealer Marindepån has bought the Huges Marina dealer and rights in Stockholm along with the Huges dealer in Roslagen, North East of Stockholm.
The move is seen as a joining of forces by the two dealers in a bid to prevent them cannibalising each other's business in an increasingly tough market.
The large number of boats on the Swedish market, coupled with consumers hunting for the best possible deals, has been putting pressure on dealer margins in Sweden for some time, forcing a number of boat dealers out of business. Huges Marina and Marindepån have been in discussions since the end of 2011 with a view to combining their strengths.
“For a long time we've seen a weakened market and there are still many challenges to face before the market is back. We look upon this solution with one stronger company in the Stockholm area as healthy and exciting. We also believe this means possibilities for cooperations with other companies”, says Matts Kastengren manager of the board at Huges Marina.
The actual deal means Huges Marina will have a 10 per cent minority stake in Marindepån, which until now had been fully owned by entrepreneurs Björn Sandhaag and Richard Junestrand.
Both companies have relations with a lot of well known boat and engine brands. Business will continue with most of these. The most important brands will be boats from Silver and Bayliner and engines from Mercury, Suzuki and Honda.
“During the recent months we've seen a remarkable growth of sales volumes in the Stockholm area, but they're still too low to give good profitability that would make it possible to reinvest and develop the organisation at the pace we'd like to see. This is a solution that gives us the possibility to reach such a level quicker,” says Björn Sandhaag, managing director of Marindepån.