Brunswick Strives to Focus on Core Lines

After announcing last summer that it was putting its fishing, bikes, and camping businesses on the block, Brunswick Corp. has been having mixed success in freeing itself to focus on its core business lines. Brunswick is shedding many business lines, after an unsuccessful attempt at diversification in the recreation market, so it can concentrate on its boat, marine engine, fitness equipment, and billiard table businesses. While the company was able to divest its sleeping bag and tent operations, the sale of its Zebco fishing products and Igloo cooler operations to Los Angeles-based sporting concern K2 Inc. collapsed in early November. Analysts predict that it may not be easy to find another buyer for the entire outdoors division, and that the operations might end up being sold off in pieces. Hayley Kissell at Merrill Lynch Global Securities says that declining growth in outdoor recreation businesses has been troubling companies such as Brunswick for several years. “Across the board, outdoor recreation businesses have been in decline since 1997, facing pressures and excess inventory,” she says. The brands that Brunswick has slated for sale are strong and still hold value,” she notes, “especially the Zebco line, which dominates the fishing gear market.” Brunswick was also able to sell its bike division in early January. Wind Point Partners, a private equity firm with offices in Chicago and Southfield, Mich., acquired Brunswick Bicycle through portfolio company Pacific Bicycle. Brunswick Bicycle markets the Roadmaster and Mongoose brands.