Platinum Equity Buys Genmar Assets
The bankrupt boat maker’s sale is the latest in a series of deals where companies dependent on discretionary spending sold at a discount.
February 3, 2010
Genmar Holdings sold its boating assets to Platinum Equity, a regular player on the distressed scene as of late, via a 363 sale.
The California-based PE firm bought Genmar assets including its brands Ranger, Stratos, Champion, Wellcraft, Four Winns, Larson, and Glastron. Calls seeking comment were not returned by press time and terms of the deal were not disclosed.
Genmar previously sold Genmar Yacht Group to J&D Acquisitions and its hydra sports brand to MCBC Hydra Boats.
Boat and motorcycle makers have fallen on hard times in the recession as the downturn has substantially impacted consumers’ ability to support their products.
And Platinum has been eager to step up and make distressed investments.
The investor bought Alcoa Inc.’s wire harness and electrical distribution unit as the company sought to relieve mounting debt; Platinum bought the San Diego Union-Tribune from Copley Press; its Ryerson Inc. bought Texas Steel Processing earlier this year and also in 2010, the PE firm acquired OAO Technology Solutions from middle market investor JF Lehman & Co.
Houlihan Lokey represented Genmar as its advisor and Fredrikson and Byron served as legal counsel.
Other examples of recent investments in high-end makers of transportation include Dorel Industries’ 2008 acquisition of Cannondale Bicycle from Pegasus Partners for up to $200 million in cash. Pegasus had bought Cannondale in 2003 and the company would later file for bankruptcy after a failed venture into the motorcycle industry.
Speaking of which, Harley Davidson has not fared well through the recession, and is going core. In 2009, the company dumped its Buell line of bikes and apparel, costing it $125 million, and elected to sell off Italian brand MV Agusta, which it had bought for $109 million in 2008.
Also, in 2009, bankrupt scooter maker Vectrix was bought by GH Partners.
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