BRUNSWICK
ANNOUNCES SALE
OF
BAJA MARINE ASSETS TO FOUNTAIN POWERBOATS
LAKE FOREST, Ill., March 20, 2008
– 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”Ô 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, Örnvik, 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 www.brunswick.com.
