Disposal of Sea Ray by the end of June 2018
The American group Brunswick, a world leader in yachting, had announced in December 2017 its intention to separate from the Sea Ray brand, whose specialization in large inboard propulsion pleasure boats was moving away from its core business. After receiving approximately 40 applications, 8 applications were selected by management in March 2018. Brunswick then selected two finalists. According to information obtained by BoatIndustry, the choice of the buyer would now be decided. Final technical negotiations are underway and the name of the new owner of the Sea Ray brand should be made public by June 28, 2018. The imminence of the sale is confirmed by some details such as the change of email address of the employees from brunswick.com to searay.com.
A good image but declining results
The context of the sale of Sea Ray is delicate in economic terms. Although its boats are well known, the company has had difficulty remaining profitable in recent years. Its purchase by the Brunswick Group from its founder Connie Ray in 1986, and the subsequent acquisitions of other yacht yards, had helped create the world's leading yachting group, a position it could lose after the sale. In 2017, Sea Ray's sales were $387.6 million, with an operating loss of $17.2 million.
Restructuring of Brunswick
The sale of Sea Ray is part of a reorganization of the Brunswick Group. The marine division was separated in 2018 from the rest of its fitness-related business. The bowling and billiards divisions had been sold in 2015. While the predominance of outboard-powered boats is confirmed by the latest U.S. statistics, Brunswick made the choice to focus on its Mercury engine production subsidiary and on its specialized boat brands in the field, such as Bay Liner, Quicksilver or Boston Whaler. This strategy seems to satisfy investors, with Brunswick's share price reaching its annual high on June 6, 2018, as the sale of Sea Ray approached.
