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MasterCraft to buy Crest
Posted on Tuesday, 11 September 2018 11:07
MCBC Holdings has announced it is buying, through its subsidiary MasterCraft Boat, US-based pontoon boat manufacturer Crest Marine for USD 80.00 million.
Subject to customary closing conditions, the deal is expected to close in the fourth quarter of 2018.
As a result of the transaction, Mastercraft will be able to expand its business and increase its standing in the pontoon sector.
The buyer, alongside its previous acquisition of boat company NauticStar, will also distinguish itself as the only manufacturer with three entities in the outboard propulsion sector, which is the largest category in the powerboat industry.
Chief executive of MasterCraft, Terry Mcnew, said: “The acquisition of Crest is the logical next step in our strategic plan to acquire profitable, growing, premium brands in fast-growing segments that further diversify our product portfolio. “
He added that the company will also benefit from the target’s compound annual growth rate, which rose 23.0 per cent in annual retail sales from 2011 to 2017, with the broader pontoon segment totalling retail unit sales up by 10.9 per cent over the same period.
Formed in 1957, Michigan-based Crest comprises a network of 120 dealers across the US and Cananda, selling pontoon boating brands such as Crest I, Crest II, Continental, Calypso, and Caliber, among others.
In the calendar year ending 2017, it posted USD 65.90 million in net sales, which is expected to increase to USD 90.00 million at the end of the same period this year.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 102 deals targeting ship and boat building manufacturers announced worldwide since the beginning of 2018.
In the largest of these, an unnamed investor subscribed for shares in ship building services company, Samsung Heavy Industries, for USD 1.32 billion.
Other companies to be targeted in this sector include Boat Holdings (USD 825.00 million), Shanghai Waigaoqiao Shipbuilding (USD 756.06 million), and CSSU Huangpu Wenchong Shipbuilding (USD 381.10 million).
© Zephus Ltd