End of Sea Ray's sale process
Brunswick Group, the world leader in yachting, announced on June 25, 2018 that it would no longer sell its Sea Ray powerboat brand. After having declared its intention to sell its loss-making brand on 5 December 2017, it had initiated a lengthy procedure to identify potential buyers. At the beginning of June, all the indicators seemed to announce the imminent designation of the new owner. The Brunswick group finally surprised all observers by giving up the sale.
No satisfactory buyback offer
Mark Schwabero, CEO of Brunswick Group, says he is disappointed with the takeover bids. "In recent months, we have embarked on an in-depth process to sell the Sea Ray business, which we believed would generate the greatest value for our shareholders. Although there was interest in the company, the offers we received did not reflect a suitable value for this high-end brand and did not meet our expectations."
More boats over 40 feet
Analysing the failure of the sale by the low valuation of the segment of boats over 40 feet, Mark Schwabero announced the refocusing of activity. Sea Ray will now focus on the production of sportboats and small cruisers under 40 feet. Synergies with the rest of the Brunswick Group will be greater in the boating sector, which is marked by the growing share of high-power outboard engines.
Plant closures and redundancies
The new organization will result in the elimination of 825 positions and the closure of the 2 Florida plants as of 2018, except for after-sales service which will continue in Sykes Creek. The Tennessee plants will continue to build the small units.
