Please select your home edition
Edition
Allen Brothers

Brunswick to acquire Navico; will enhance leadership position in marine technology

by Brunswick 24 Jun 09:43 PDT
Brunswick to acquire Navico © Brunswick Corporation

Brunswick Corporation (NYSE: BC) today announced that it has entered into a definitive agreement to acquire Navico, a global leader in marine electronics and sensors for $1.05 billion.

As a result of this acquisition, Brunswick will add the industry leading brands of Lowrance, Simrad, B&G, and C-MAP to its Advanced Systems Group (ASG), which includes the leading Parts & Accessories (P&A) brands in power management, digital control and monitoring, and networked devices.

"The acquisition of Navico and its award-winning brands will immediately accelerate Brunswick's ACES (Autonomy, Connectivity, Electrification and Shared-Access) strategy, and support our vision to deliver distinctive new products and technology-enabled experiences," said Dave Foulkes, Brunswick Corporation CEO. "We will continue to invest both in organic initiatives and acquisitions to maintain our position of global product leadership, and the addition of Lowrance, Simrad, B&G and C-MAP to our existing brand portfolio will further strengthen our ability to provide complete, innovative digital solutions to consumers and comprehensive, integrated systems offerings to our OEM customers."

Navico is a privately held global company based in Egersund, Norway and co-owned by Altor Fund IV and Goldman Sachs Asset Management. It is a leading provider of multi-function displays, fish finders, autopilots, sonar, radar, and cartography. Navico's strong brands serve most major powerboat and sailing markets for both recreational and commercial applications.

Navico's revenues totaled approximately $470 million for the trailing 12-month period ended May 31, 2021, with attractive revenue growth, a strong margin profile, and a capital efficient business model. Brunswick's P&A segment accounts for about $1.5 billion - or 35 percent of total 2020 annual revenues. With the addition of Navico, Brunswick expects its P&A businesses to have revenues on a run-rate basis exceeding $2.0 billion. Navico's significant aftermarket orientation and attractive margin profile further add to Brunswick's cycle resistant business profile.

"After a strong period of growth, we are very excited about joining the Brunswick family to further strengthen our offering and support our customers going forward." said Knut Frostad, Navico's President & CEO. "On behalf of everyone at Navico, we cannot wait to begin our journey with Brunswick and share our passion and dedication with their team. By working together, we will be able to deliver a unique and integrated customer experience."

"Brunswick's Advanced Systems Group has unparalleled global reach and the addition of Navico solidifies our commitment to creating an unmatched boater and OEM experience," said Brett Dibkey, Advanced Systems Group president. "We have a very broad product portfolio, ranging from general marine products to power management solutions and we will leverage the unique expertise of each brand to generate revenue and operating synergies to promote growth for both ASG and Navico. We are also adding a talented, experienced, and consumer-focused management team, which is expected to remain in place and play a major role in the execution of our strategy."

Brunswick will be using a combination of debt and cash on its balance sheet to fund the acquisition. Brunswick remains committed to maintaining its investment grade credit rating and at close expects its debt-to-EBITDA ratio to be approximately 1.7x on a gross basis.

J.P. Morgan Securities LLC is serving as the exclusive financial advisor to Brunswick Corporation and is providing committed financing; Baker McKenzie and Schjødt are serving as legal counsel to Brunswick Corporation on the transaction.

Goldman Sachs Bank Europe SE, Sweden Bankfilial, and Carnegie acted as financial advisors to Altor, Goldman Sachs Asset Management and Marine Innovations Group AS; Sullivan & Cromwell and Wiersholm provided legal advisory services on the transaction.

The closing of the transaction is anticipated during the second half of 2021 and is subject to usual and customary closing conditions as well as regulatory review and approval.

Related Articles

2021 Forbes "America's Best Employers for Women"
Brunswick Corporation named for a second consecutive year For the second consecutive year, Brunswick Corporation (NYSE: BC) has been named by Forbes and Statista to the 2021 "America's Best Employers for Women" list. Posted on 28 Jul
Lenn Scholz named Lund Boats President
Dirk Hyde named President of Aluminum Boat Group Lund Boats, a division of Brunswick Corporation (NYSE: BC), today announced Lenn Scholz as President of Lund Boats replacing Dirk Hyde who has been promoted to President of Brunswick's Aluminum Boat Group. Posted on 21 Jul
Brunswick Corporation next wave strategy
Business evolution, products, technologies, unique experiences, and enterprise synergies During its 2021 Investor Day presentation in May, Brunswick Corporation (NYSE: BC) unveiled the "Next Wave" of the Company's strategy highlighting the next phase of business evolution, products, technologies, unique experiences, and enterprise synergies. Posted on 14 Jul
Boston Whaler and Sea Ray launch new apps
MyWhaler & Sea Ray+ provide consumers with comprehensive resources to elevate on-water experiences Two of Brunswick Corporation's leading boat brands, Boston Whaler and Sea Ray, today announced the launch of the “MyWhaler” and “Sea Ray+” apps, designed to improve the boat ownership experience by reducing friction across the entire ownership journey. Posted on 1 Jul
Brunswick publishes 2020 Sustainability Report
Highlighting the Company's progress toward its sustainability goals Brunswick Corporation (NYSE: BC) today published its 2020 Sustainability Report, Our Stake in Tomorrow's Tide, highlighting the Company's progress toward its sustainability goals, including a continued commitment to advance its ESG strategies. Posted on 31 Mar
Brunswick Corporation expands boat production
To meet unprecedented global demand Brunswick Corporation (NYSE: BC) today announced that it is increasing production capacity at three of its global boat manufacturing facilities to meet unprecedented consumer demand and assist in replenishing historically low field inventory levels. Posted on 26 Jan
Brunswick sustainability efforts honored
Making Newsweek's 2021 list of America's Most Responsible Companies Brunswick Corporation (NYSE:BC) has been named by Newsweek to the 2021 list of America's Most Responsible Companies. From the thousands of companies considered for this honor, only 400 made the final list and Brunswick is ranked No. 205 overall. Posted on 9 Dec 2020
Brunswick Corporation expands in electrification
Establishing new leaders with strong technology experience Brunswick Corporation (NYSE: BC) continues to develop solutions to further improve boater experiences both by advancing the efficiency and capabilities of its core product lines and through its ACES strategy. Posted on 11 Nov 2020
Brunswick Corporation continues to set new records
A very successful 2020 Ft. Lauderdale International Boat Show Brunswick Corporation (NYSE: BC) and its industry leading brands, Mercury Marine, Boston Whaler, Sea Ray and Freedom Boat Club, all had a very successful 2020 Ft. Lauderdale International Boat Show. Posted on 10 Nov 2020
Aine Denari named Brunswick Boat Group President
Responsible for the largest boat portfolio in the recreational marine industry Denari joins Brunswick after spending the past 20 years in a variety of executive positions within the automotive industry, and in leadership positions at major global consulting firms. Posted on 22 Oct 2020
J Composites 2020 - FOOTERNorth Sails 2021 FOOTERGet My Boat 2021 FOOTER