Freedom Boat Club expansion further accelerates growth of Brunswick's recurring revenue businesses
by Brunswick 6 Jun 2022 17:49 PDT
Brunswick Corporation © Brunswick Corporation
Brunswick Corporation announced that (NYSE: BC) Freedom Boat Club this week is expected surpass 50,000 memberships across its 360 global locations, made up of both corporate locations and a continually growing network of franchise partners. Freedom's 50,000 memberships cover more than 75,000 global members constituting a growing, energetic, and diverse community of boating enthusiasts. Freedom has become a catalyst for new and future generations of boating participation, strengthening the entire industry.
Since Brunswick's acquisition of Freedom in 2019, the company has more than doubled its memberships, locations, and the number of boats in its fleet. Through organic growth and completed acquisitions of former franchise territories, even excluding synergies, Freedom's contribution to Brunswick's top-line is anticipated to double in 2022 vs. 2021 as it scales quickly to deliver its 2025 financial targets and become much more material to Brunswick's overall growth and financial performance. The growth in company operated locations has been matched by continued expansion of franchise locations which still account for more than 70 percent of all club locations.
"With an expanding company operated footprint and a talented and committed network of franchisee partners committed to growing Freedom, we will be expanding our presence in existing markets and entering new markets around the world," said Brunswick CEO, David Foulkes. "We believe this club model provides a high-quality, convenient and differentiated experience, and has a long runway for growth. Over time, we intend to create even more value for our members and keep them in the Brunswick family and on the water for a lifetime."
The subscription nature of Freedom revenue and earnings contributes to the growing impact of recurring revenue businesses, which also include aftermarket Parts and Accessories (P&A) and repower engine sales, on Brunswick's overall revenue and earnings. Brunswick's recent acquisitions have focused heavily in this area with recent Brunswick acquisitions RELiON and Navico both having a very strong aftermarket sales mix. Brunswick's recurring revenue businesses already deliver more than 40 percent of total company earnings with a target to exceed 50 percent by 2025.