Corporate and Financial
Brunswick Pursues Sale of New Technologies Unit; Board Authorizes $500 Million Share Repurchase Program
LAKE FOREST, Ill., April 27 /PRNewswire-FirstCall/ -- Brunswick
Corporation (NYSE: BC) announced today it intends to sell substantially all of
its Brunswick New Technologies (BNT) business unit. This business unit's
products are primarily based on GPS technologies and sold in the portable
consumer navigation, fleet tracking, and automotive and marine markets. The
company said it has retained Merrill Lynch & Co. to act as its financial
advisor in connection with the sale.
"This business unit has experienced exceptional growth under Brunswick's
ownership over the past few years -- especially in the portable land-based
navigation segment," said Brunswick Chairman and Chief Executive Officer
Dustan E. McCoy. "As we become increasingly focused on our core business
segments -- marine, fitness, bowling and billiards -- we have determined that
continuing to invest in this business unit to fuel growth is not consistent
with our long-term strategic objectives. We believe that BNT's excellent
long-term prospects may be better achieved under different ownership -- one
that is focused on BNT's technological expertise -- to enable it to reach its
full potential."
BNT operations included in the proposed sale consist primarily of its
Navman, Northstar and MX Marine brands. The company said it would retain
MotoTron, which designs and supplies sophisticated engine control and vehicle
networking systems, IDS Integrated Dealer Systems, which provides management
systems to marine and other dealerships, and technologies and engineering
talent related to connectivity features in Brunswick's fitness products.
The company also announced that its board of directors has authorized the
repurchase of up to $500 million of the company's outstanding common stock.
Share repurchases will be made from time to time in the open market or through
privately negotiated transactions, based on market conditions. This
authorization supplants the $200 million authorization approved by the board
in May 2005, under which the company repurchased approximately 3.6 million
shares for approximately $137.8 million. The company currently has
approximately 94.5 million shares outstanding.
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, HarrisKayot, Hatteras, Lowe, Lund, Maxum, Meridian,
Ornvik, Palmetto, Princecraft, Quicksilver, Savage, Sea Boss, Sea Pro, Sea
Ray, Sealine, Triton, Trophy, Uttern and Valiant boats; Attwood marine parts
and accessories; Land 'N' Sea, Kellogg 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 Valley-Dynamo pool, Air
Hockey and foosball tables. For more information, visit
http://www.brunswick.com .
SOURCE: Brunswick Corporation
CONTACT: Kathryn Chieger, Vice President - Corporate and Investor
Relations of Brunswick Corporation, +1-847-735-4612
Web site: http://www.brunswick.com
