LOUDON, Tenn., Aug. 22, 2018 -- Malibu Boats, Inc. (Nasdaq: MBUU) announced today that it has entered into a definitive agreement with S2 Yachts, Inc. to acquire the assets of Pursuit Boats for a total consideration of $100 million. The transaction is expected to close in the fourth calendar quarter of 2018.
“As a leader in the saltwater outboard fishing segment, Pursuit is an incredible addition to the Malibu family, Malibu Boats CEO Jack Springer commented in a statement. “The Pursuit brand maintains a strong reputation for luxurious appointments, innovation, and premium quality, and this highly complementary business creates strong strategic opportunities to enhance product development across our portfolio of brands. Together, we have an opportunity to broaden our outboard offering, while leveraging the manufacturing and design expertise of the respective teams to continue to deliver the premium products customers expect.”
Pursuit, located in Fort Pierce, Florida, offers 15 models of offshore, dual console and center console boats. Pursuit’s premium market position has been established over its 41-year history through a reputation for superior quality, performance and customer service, and generated approximately $124 million in net sales over the last twelve months.
“As a trailblazer in its own right, Malibu is an ideal partner,” S2 Yachts CEO Tom Slikkers said, “as we maintain similar cultures with a shared passion for product and people, which has driven our collective long-term success. This transaction is as much about the right partner to steward Pursuit’s future as it is about the sale price. Malibu is that right partner. The Slikkers family will continue to own and operate Tiara Yachts and Tiara Sport under the S2 Yachts umbrella and we are excited about that.”
Transaction Highlights:
• Premium brand positioned in one of the largest and fastest growing segments in the marine industry
• Broadens Malibu’s breadth of boat offerings, diversifies end markets, and boosts growth profile
• Ability to leverage manufacturing, design expertise and distribution to accelerate outboard growth
• Transaction expected to close in the fourth calendar quarter of 2018; anticipated to be immediately accretive to earnings per share in FY19, excluding purchase accounting and acquisition costs
About Malibu Boats
Based in Loudon, Tennessee, Malibu Boats, Inc. is a leading designer, manufacturer and marketer of a diverse range of recreational powerboats, including performance sport boats, sterndrive and outboard boats. Malibu Boats has the #1 market share position in the United States in the performance sport boat category through its Malibu and Axis Wake Research brands. Also, Malibu Boats has the #1 market share position in the United States in the 24’ – 29’ segment of the sterndrive category through its Cobalt brand. Since inception in 1982, Malibu Boats has been a consistent innovator in the powerboat industry, designing products that appeal to an expanding range of recreational boaters and water sports enthusiasts whose passion for boating and water sports is a key aspect of their lifestyle.
Advisors
Raymond James & Associates, Inc. is acting as Malibu's financial advisor and O'Melveny & Myers LLP is acting as Malibu's legal counsel. Angle Advisors, LLC. is acting as S2's financial advisor and Varnum LLP is acting as S2's legal counsel.
