A manufacturer of recreational and lifestyle products
) recently completed the sale of its sportfishing convertible
yacht brands, Hatteras and Cabo to Navis HCY Acquisition. Navis
HCY Acquisition is an affiliate of Philadelphia investment firm
Versa Capital Management LLC.
Brunswick purchased Hatteras Yachts in 2001 and Cabo in 2006
and announced its intention to sell these brands in Jan 2013.
Following this divestiture, the company expects to focus on its
remaining core yatch brands which now include the Sea Ray and
The terms of the transaction were not disclosed. However, the
two brands will continue to operate from New Bern and retain
their current workforce.
Brunswickhas been consistently reviewing and refining its
product portfolio and trying to focus its resources on core
brands. In Jul 2010, Brunswick sold its Triton Boats to Fishing
Holdings, LLC, an affiliate of Platinum Equity. By selling its
non-core brands, Brunswick tries to maintain its leadership
position in the recreational and fishing boat markets.
Late last month, Brunswick announced its second quarter
results. The company delivered an adjusted profit of $1.23 per
share in the second quarter of 2013, up 18% from the prior-year
quarter. Earnings were also better than the Zacks Consensus
Estimate of $1.08 per share by 13.9%.
Revenues in the quarter edged up 4%, led by growth in outboard
marine products, marine parts and accessories, fitness equipment
and U.S. retail bowling. Improved operating efficiencies and cost
reduction measures improved gross margin by 60 basis points.
Despite unfavorable global retail demand trends, Brunswick
increased its marketing spending and innovation in the third
quarter. Brunswick also lifted its outlook for full year 2013
based on solid second quarter 2013 results, a favorable
debt-financing agreement and a lower tax rate. It now expects
earnings per share of $2.55-$2.65, up from a previous range of
Brunswick Corp is best known for making bowling and billiard
equipment. However, it has evolved into a much more diverse
company with high power brands across several industries; from
Life Fitness and Hammer-strength in its fitness division to some
of the top names in marine boating like Bayliner, SeaRay, and
more. Brunswick also manufactures marine engines and accessories
under Mercury, Mariner, and other brands. Brunswick holds a Zacks
Rank #3 (Hold).
Other Stocks to Consider
Other leisure & recreational stocks that are better placed
and are worth considering are
Johnson Outdoors Inc
Smith & Wesson Holding Corp
Sturm Ruger & Co Inc
), all holding a Zacks Rank #1 (Strong Buy).
BRUNSWICK CORP (BC): Free Stock Analysis
JOHNSON OUTDOOR (JOUT): Free Stock Analysis
STURM RUGER&CO (RGR): Free Stock Analysis
SMITH & WESSON (SWHC): Free Stock Analysis
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