HOLLAND â€” S2 Yachts Inc. will sell its Pursuit Boats brand in a deal valued at $100 million.
The Holland-based boat manufacturer said today that it entered into an agreement to sell all the assets of its Pursuit Boats brand to Loudon, Tenn.-based Malibu Boats Inc. (Nasdaq: MBUU), a manufacturer of recreational fiberglass boats, according to a statement.
The deal is expected to close in the fourth quarter of this year, subject to closing conditions.
The Fort Pierce, Fla.-based Pursuit Boats makes a line saltwater fishing boats that are powered by outboard motors. The premium boat brand, which was established 41 years ago, generated approximately $124 million in net sales in the 12-month period that ended June 30 of this year, according to a statement.
S2 Yachts, which is owned by the Slikkers family, retains ownership of its Tiara Yachts and Tiara Sport brands, according to CEO Tom Slikkers.
Slikkers described Malibu Boats as â€śan ideal partnerâ€ť to position Pursuit for the future, noting the company shared a similar culture and â€śpassion for product and people.â€ť
â€śThis transaction is as much about the right partner to steward Pursuitâ€™s future as it is about the sale price. Malibu is that right partner,â€ť Slikkers said in a statement.
Malibu plans to fund the purchase with cash on hand and debt from its revolving credit facility.
The company said the deal for the Pursuit brand will position it with a premium offering in the growing outboard-powered saltwater fishing boat segment. The addition also expands Malibuâ€™s product offerings, diversifies its end markets and enhances its growth opportunities.
â€śThe Pursuit brand maintains a strong reputation for luxurious appointments, innovation, and premium quality, and this highly complementary business creates strong strategic opportunities to enhance product development across our portfolio of brands,â€ť Malibu Boats CEO Jack Springer stated.
Birmingham-based Angle Advisors LLC served as the financial adviser to S2 Yachts, which was also advised by Grand Rapids-based law firm Varnum LLP.
Malibu Boats was advised in the deal by Raymond James & Associates Inc. and the law firm of Oâ€™Melveny & Myers LLP.
The deal comes amid a growth spurt for the boat manufacturing industry, driven by high consumer confidence, more disposable income and generally favorable economic conditions, according to a report from the National Marine Manufacturers Association.
In an annual outlook published in January, NMMA projected sales of powerboats this year will increase 5 percent to 6 percent from the more than 260,000 units sold in 2017, which was the sixth consecutive year of industry growth.
Annual consumer spending in the marine industry hit $37 billion last year, according to NMMA estimates.
As well, S2 Yachtsâ€™ sale of the Pursuit Boats brand marks the second transaction involving a Michigan-based boat manufacturer this month.
Previously, Lansing-based Triton Industries Inc., the family-owned manufacturer of Manitou brand of pontoon boats, said it agreed to sell to Quebec-based diversified vehicle and boat maker Bombardier Recreational Products (TSX: DOO), as MiBiz previously reported. Terms of the Triton-BRP deal were not disclosed.