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LCI looks to make a splash with Lewmar
Posted on Thursday, 13 June 2019 14:04
LCI Industries, through its subsidiary Lipper Components, has submitted an initial cash offer of GBP 33.28 million to UK-based supplier and manufacturer of leisure marine equipment Lewmar Marine.
The proposed consideration also allows for an additional sum of GBP 2.50 million and will be presented to the Scottish Court for approval.
LCI has received pledges from 80.7 per cent of the target’s shareholders in favour of the acquisition.
Established in 1946, Lewmar is billed as one of the world’s premier suppliers of marine equipment for yachts, sailboats and powerboats.
The company also manufactures components such as anchoring systems, sail control winches and hardware docking products.
Lewmar’s portfolio includes brands Delta, DTX, TotalCote and Lewmar Definition Glass.
The group posted turnover of GBP 56.18 million for the financial year ended 31st December 2018, up 12.0 per cent from GBP 50.15 million in the preceding 12 months.
Within the same timeframe, the buyer booked net profit of GBP 3.35 million (FY 2017: GBP 2.09 million).
LCI expects a potential deal to strengthen both company’s end markets, expand its product range and manufacturing activities and extend its geographic reach.
Jas0n Lipper, chief executive of the purchaser, said: “This is our sixth acquisition within the global leisure marine market, as well as our sixth acquisition in Europe. All of this points to our strategy to be a significant player in the global marine, rail, and caravan markets domestically and in Europe.”
A transaction with Lewmar would represent the first acquisition for LCI in in over a year; on 4th June 2018, Lipper bought Italy-based STLA, a manufacturer of bed-lifts and recreational vehicle components for the caravan industry for EUR 13.20 million.
Headquartered in New York, the group claims to be the world’s leading supplier of engineered products for the leisure and mobile transportation industry.
For the quarter ended 31st March 2019, LCI generated net sales of USD 592.17 million, down from USD 650.49 million in the corresponding period of 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 57 deals targeting ship and boat building providers announced worldwide since the beginning of 2019.
South Korean businesses featured in five of the top ten transactions, the largest of which involved Hyundai Heavy Industries agreeing to buy a 55.7 per cent stake in Daewoo Shipbuilding&Marine Engineering for KRW 1,500 billion (USD 1.84 billion).
Other targets include Guangzhou Shipyard International, Chin CSSC Holdings and Huntington Ingalls Industries.
© Zephus Ltd