Brunswick Corporation Enters Next Phase of Shared-Access and Pre-Owned Boat Strategy with Southeast Acquisitions
METTAWA, Ill., April 21, 2022 (GLOBE NEWSWIRE) -- Brunswick Corporation (NYSE:BC) announced today that it has reached an agreement to acquire a portfolio of marine assets in the Southeast United States including the greater Atlanta area to expand shared access, advance its “Boating-as-a-Service” eco-system strategy with subscription based models and fortify plans to establish a regional marine operating center that will support Freedom Boat Club and Boateka. This acquisition provides on-water infrastructure, points of distribution, an experienced team and a successful portfolio of boater services that will serve as an innovation hub for the future of digitally led boater engagement and, over time, marine electrification.
The specific transaction includes: the Freedom Boat Club of Lake Hartwell Franchise territory with two club locations; four marinas; and Eclipse Marine Group, a leading boat dealer in the Southeast with four locations. All the assets are part of J&R Marine Holdings. Terms of the deal were not disclosed.
Brunswick today also announced that Freedom Boat Club will acquire the Freedom Boat Club of Lake Lanier franchise operations and territory. With the two club locations from the J&R acquisition and the two on Lake Lanier, Freedom Boat Club immediately bolsters its Southeast “Super Territory” creating geographic and operational efficiencies in this market as part of its network of more than 340 locations worldwide.
These acquisitions enable opportunities across a wide spectrum, building upon the growth Brunswick has cultivated throughout its shared access portfolio and new digital platforms. It delivers an expanded suite of offerings for boaters: not just pre-owned boat sales, which aligns with our Boateka offering, but also a full suite of other boater services.
“This acquisition marks a transformational step in our strategy to win with boaters over their lifetime – to enable frictionless transitions between ownership and shared participation models, elevate the boating experience and retain boaters on the water longer,” said Brenna Preisser, Brunswick Corporation, President of Business Acceleration. “It will also serve as an on-water innovation center for our electrification strategy.”
“Brunswick Corporation is the largest and most well-known name in the marine industry, and we couldn’t be happier to be joining such an innovative and well-established company,” said Allen Revak, J&R Marine Holdings’ President. “Our established marinas, brands, and dealerships, along with the size and scale of Brunswick, will amplify and increase our customer experience to heights we never thought imaginable. There are incredible opportunities for Brunswick to continue to grow within the marine space, building around the boater and gaining significant learnings through owning and operating our businesses. I look forward to joining the Brunswick team and continuing to run our very successful business here in the Southeast.”
Headquartered in Mettawa, Ill., Brunswick Corporation’s leading consumer brands include Mercury Marine outboard engines; Mercury MerCruiser sterndrive and inboard packages; Mercury global parts and accessories including propellers and SmartCraft electronics; Advanced Systems Group, which includes industry-leading brands such as Simrad, Lowrance, C-MAP, B&G, MotorGuide, Attwood, Mastervolt, RELiON, Blue Sea Systems, CZone, and ASG Connect system integrators; Land ’N’ Sea, BLA, Payne’s Marine, Kellogg Marine, and Lankhorst Taselaar marine parts distribution; Mercury and Quicksilver parts and oils; Bayliner, Boston Whaler, Crestliner, Cypress Cay, Harris, Heyday, Lowe, Lund, Princecraft, Quicksilver, Rayglass, Sea Ray, Thunder Jet and Uttern boats; Brunswick Financial Services, Freedom Boat Club and Boat Class. For more information, visit brunswick.com.
Certain statements in this news release are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current expectations, estimates, and projections about Brunswick’s business and by their nature address matters that are, to different degrees, uncertain. Words such as “may,” “could,” “should,” “expect,” "anticipate," "project," "position," “intend,” “target,” “plan,” “seek,” “estimate,” “believe,” “predict,” “outlook,” and similar expressions are intended to identify forward-looking statements. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this news release. These risks include, but are not limited to: the effect of adverse general economic conditions, including the amount of disposable income consumers have available for discretionary spending; fiscal and monetary policy concerns; adverse capital market conditions; changes in currency exchange rates; higher energy and fuel costs; competitive pricing pressures; interest-rate risk related to our debt; the coronavirus (COVID-19) pandemic and the emergence of variant strains; actual or anticipated increases in costs, disruptions of supply, or defects in raw materials, parts, or components we purchase from third parties, including as a result of pressures due to the pandemic; supplier manufacturing constraints, increased demand for shipping carriers, and transportation disruptions; managing our manufacturing footprint; adverse weather conditions, climate change events and other catastrophic event risks; international business risks; our ability to develop new and innovative products and services at a competitive price; our ability to meet demand in a rapidly changing environment; loss of key customers; absorbing fixed costs in production; risks associated with joint ventures that do not operate solely for our benefit; our ability to integrate acquisitions, including Navico, and the risk for associated disruption to our business; the risk that unexpected costs will be incurred in connection with the Navico transaction or the possibility that the expected synergies and value creation from the transaction will not be realized or will not be realized within the expected time period; our ability to successfully implement our strategic plan and growth initiatives; attracting and retaining skilled labor, implementing succession plans for key leadership, and executing organizational and leadership changes; our ability to identify, complete, and integrate targeted acquisitions; the risk that strategic divestitures will not provide business benefits; maintaining effective distribution; risks related to dealers and customers being able to access adequate financing; requirements for us to repurchase inventory; inventory reductions by dealers, retailers, or independent boat builders; risks related to the Freedom Boat Club franchise business model; outages, breaches, or other cybersecurity events regarding our technology systems, which could affect manufacturing and business operations and could result in lost or stolen information and associated remediation costs; our ability to protect our brands and intellectual property; changes to U.S. trade policy and tariffs; any impairment to the value of goodwill and other assets; product liability, warranty, and other claims risks; legal, environmental, and other regulatory compliance, including increased costs, fines, and reputational risks; changes in income tax legislation or enforcement; managing our share repurchases; and risks associated with certain divisive shareholder activist actions.
Lee Gordon Vice President – Brunswick Global Communications & Public Affairs Brunswick Office: 847-735-4003 Mercury Office: 920-924-1808 Cell: 904-860-8848 Lee.Gordon@Brunswick.com
Released April 21, 2022