Brunswick Corporation has completed its previously announced acquisition of the Crestliner, Lowe and Lund aluminum boat brands from Genmar Industries, Inc. for approximately $191 million in cash.
The transaction also contains provisions for additional consideration of up to $30 million to be paid in three years based on the achievement of a minimum 10 percent after-tax cash flow return on total investment over that time period. Further, Brunswick will receive future tax benefits, which have a net present value of about $35 million.
The purchase includes Crestliner, Inc., based in Little Falls, Minn.; Lowe Boats, Inc., based in Lebanon, Mo.; Lund Boat Company of New York Mills, Minn., and Genmar Boats Canada, Inc. (which produces the Lund brand in Canada), of Steinbach, Manitoba. Each of these companies produces numerous models of aluminum fishing, pontoon, deck and utility boats ranging from 10 to 25 feet. Combined, these entities had sales of approximately $311 million in the year ended June 30, 2003.
The company said that the purchase of these businesses would be accretive to earnings this year, adding approximately $0.08 to $0.10 per diluted share for the nine months remaining in 2004.
Brunswick Chairman and Chief Executive Officer George W. Buckley said, “This acquisition represents an important step in achieving our goal of 'filling the white spaces' in our product line-up by giving us a presence in the important aluminum boat segment. We welcome these companies and their employees to the Brunswick family.”
