Corporate and Financial
Brunswick Announces Sale of Baja Marine Assets to Fountain Powerboats
LAKE FOREST, Ill., March 20 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE: BC) today announced the signing of a letter of intent to
sell certain assets relating to its Baja boat business to Fountain Powerboat
Industries, Inc., of Washington, N.C. Terms of the agreement were not
disclosed, and completion of the sale is subject to certain conditions. In
preparation for the transition, Brunswick plans to end production of Baja
boats in Bucyrus, Ohio, by the end of May, consistent with the end of the 2008
model year. As a result of these actions, the company said it estimates that
asset write-downs, along with severance and other costs associated with the
plant closure, could total between $10 million to $15 million, pre-tax.
"This was a strategic decision to further refine our product portfolio and
best focus our resources on brands and marine segments that we believe are
core to our success going forward," said Brunswick Chairman and Chief
Executive Officer Dustan E. McCoy. "This action in no way reflects upon Baja
or the abilities and performance of the Bucyrus work force. We believe,
however, that Baja and its dealers will ultimately benefit from being a part
of Fountain Powerboats, a company that, like Baja, is a leader in
high-performance boats."
When completed, the closing of the Baja plant will mean a loss of
approximately 285 positions. Baja leadership will be working diligently to
transfer as many employees as possible and practical to either Fountain or
other Brunswick manufacturing facilities. For those employees who do not have
the opportunity or do not wish to transfer, severance will be provided.
About Brunswick
Headquartered in Lake Forest, Ill., Brunswick Corporation endeavors to
instill "Genuine Ingenuity"(TM) in all its leading consumer brands, including
Mercury and Mariner outboard engines; Mercury MerCruiser sterndrives and
inboard engines; MotorGuide trolling motors; Teignbridge propellers; MotoTron
electronic controls; Albemarle, Arvor, Baja, Bayliner, Bermuda, Boston Whaler,
Cabo Yachts, Crestliner, Cypress Cay, Harris, Hatteras, Kayot, Laguna, Lowe,
Lund, Maxum, Meridian, Ornvik, Palmetto, Princecraft, Quicksilver, Rayglass,
Savage, Sea Boss, Sea Pro, Sea Ray, Sealine, Triton, Trophy, Uttern and
Valiant boats; Attwood marine parts and accessories; Land 'N' Sea, Kellogg
Marine, Diversified Marine and Benrock parts and accessories distributors; IDS
dealer management systems; Life Fitness, Hammer Strength and ParaBody fitness
equipment; Brunswick bowling centers, equipment and consumer products;
Brunswick billiards tables; and Dynamo, Tornado and Valley pool tables, Air
Hockey and foosball tables. For more information, visit
http://www.brunswick.com.
SOURCE: Brunswick Corporation
CONTACT: Daniel Kubera, Director - Media Relations and Corporate
Communications of Brunswick Corporation, +1-847-735-4617,
daniel.kubera@brunswick.com
Web site: http://www.brunswick.com
